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►Hey! The Gig Is UP! Federal Reserve Act Has a Backout Clause

WATCH NOW: The GIG is UP:Money, the Federal Reserve and You. by Populist lawyer, Gary Fielder.
http://www.gigisup.net/Default.aspx

The Federal Reserve Bunk

http://dmc.members.sonic.net/sentinel/naij2.html
By Harry V. Martin

Copyright FreeAmerica and Harry V. Martin, 1995

Article I, Section 8, Clause 5, of the United States Constitution provides that Congress shall have the power to coin money and regulate the value thereof and of any foreign coins. But that is not the case. The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank.
The Federal Reserve System was established by President Woodrow Wilson in 1913. The premise used by President Wilson and his financial advisors for the establishment of the Federal Reserve System was to "supplant the dictatorship of the private banking institutions" and "to stabilize the inflexibility of national bank note supplies". The previous system of banking was "feudal" in nature, in which private bankers control communities and could issue their own bank notes. They had little regulations concerning reserve assets and loan policies. Banking was a patch-quilt of institutions scattered across the face of the nation with no central policy.

http://dmc.members.sonic.net/sentinel/naij2.html

Federal Reserve Act
Section 31. Reservation of Right to Amend
1. Reservation of Right to Amend
The right to amend, alter, or repeal this Act is hereby expressly reserved.

http://www.federalreserve.gov/aboutthefed/section31.htm

CONCLUSION

No Congress, no President has been strong enough to stand up to the foreign-controlled Federal Reserve Bank. Yet there is a catch - one that President Kennedy recognized before he was slain - the original deal in 1913 creating the Federal Reserve Bank had a simple backout clause. The investors loaned the United States Government $1 billion. And the backout clause allows the United States to buy out the system for that $1 billion. If the Federal Reserve Bank were demolished and the Congress of the United States took control of the currency, as required in the Constitution, the National Debt would virtually end overnight, and the need for more taxes and even the income tax, itself. Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
Join and organize to END the FED.

http://endthefedusa.ning.com/



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1913 Fed Res. Act, Section 6. How to remove an insolvent bank.

1913 Federal Reserve Act, Section 6. How to remove an insolvent member bank
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf

Section 6. If any member bank shall be declared insolvent and a receiver appointed therefor, the stock held by it in said Federal reserve bank shall be canceled, without impairment of its liability and all cash-paid subscriptions on said stock, with one-half of one per centum per month from the period of last dividend, not to exceed the book value thereof, shall be first applied to all debts of the insolvent member bank to the Federal reserve bank, and the balance if any, shall be paid to the receiver of the insolvent bank. Whenever the capital stock of a Federal reserve bank is reduced, either on account of a reduction in capital stock of any member bank or of the liquidation or insolvency of such bank, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing such reduction of capital stock and the amount repaid to such bank.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

1913 Federal Reserve Act, Section 5. How to buy out member bank

Stock Issues; Increase and Decrease of Capital.
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf

Section 5. The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Federal reserve banks owned by member banks shall not be transferred or hypothecated. (1) ...

Section 5 (continued). When a Federal Reserve bank member withdraws itself.
... When a member bank reduces its capital stock it shall surrender a proportionate amount of its holdings in the capital of said Federal reserve bank, and when a member bank voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Federal reserve bank and be released from its stock subscription not previously called. In either case the shares surrendered shall be canceled and the member bank shall receive in payment therefore, under regulations to be prescribed by the Federal Reserve Board, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of one per centum a month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal reserve bank.
==============================================================

Footnote: (1) : hypothecate - verb. to pledge as security without delivery of title or possession

Origin: Medieval Latin hypothecare to pledge, from Late Latin hypotheca pledge, from Greek hypotheke, from hypotithenai to put under, deposit as a pledge

First Known Use: 1681

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Where is the source of this clause to be found?

I've read through the 31 pages of H.R. 7837, The Federal Reserve Act of 1913 several times and have yet found anything stating that the "Federal Reserve Act Has A Backout Clause".

Nonsense, up with which I will not put.

Federal Reserve Act Public—No. 43—63d Congress.] [H. R. 7837. Elastic casting? A staged event without a stage?
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf

Opening line. "An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."

December 23, 1913. The ever before Christmas Eve. Thus begins the act to eviscerate United States Banking. Money of the United States has left this supposed "Reserve System" decades ago. It is a hollow promissory note system. Vacuous & void. An ”elastic currency” is a measure of what? Make-believe?

  • Elastic ruler to measure a ruler?
  • Elastic yardstick to measure a yard?
  • Elastic tape measure to measure ticker tape?
  • Elastic empire to measure its own debt?

Measure of the 1913 Federal Reserve Act first sentence concludes without a conclusion. As what cost? Up with which, I will not put.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

has Ron Paul ever

mentioned this clause in any context????

Jackson and no Bank

I think the writer is wrong about no president has been strong enough to stand up to the bank it was Andrew Jackson and it was called the bank of america before the fed and he did kill it. He is the only president to end his two terms with ZERO DEFICIT and no it was not Bill the rapist Clinton. The FED is the only WMD that we should be worried about. And if Jackson were alive today I would with out hesitation follow him into Battle any time any were.

"[A subsidy] exceeded all the current coin of the realm"- Hallam

Webster's 1913 Dictionary: Coin (koin), n. [F. coin, formerly also coing, wedge, stamp, corner, fr. L. cuneus wedge; prob. akin to E. cone, hone. See {Hone}, n., and cf. {Coigne}, {Quoin}, {Cuneiform}.]

  1. A quoin; a corner or external angle; a wedge. See
    {Coigne}, and {Quoin}.
  2. A piece of metal on which certain characters are stamped by government authority, making it legally current as money; -- much used in a collective sense.
  3. It is alleged that it [a subsidy] exceeded all the current coin of the realm. --Hallam.

"In conclusion, we have been here before. Subsidy has once again exceeded all the coin of the realm." - Mark Twain, 2011.

"Empires end when their faith based currency loses face... Faith value & face value approach zero with remarkable consistency, by & by." - Mark Twain, 2011.

The following citation of the 1828 Webster's Dictionary definition of coin is also very interesting. Coin as meant many things to many folk. Putting dictionaries aside, coin has meant money of value, most notably gold & silver, for millenniums. Objects of insignificant value used for trading were commonly called tokens or chips.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

This definition from

This definition from Webster's 1828 dictionary is interesting:

COIN, n. Primarily, the die employed for stamping money. Hence,

1. Money stamped; a piece of metal, as gold, silver, copper, or other metal, converted into money, by impressing on it marks, figures or characters. To make good money, these impressions must be made under the authority of government. That which is stamped without authority is called false or counterfeit coin. Formerly, all coin was made by hammering; but it is now impressed by a machine or mill.

So, it appears that it is the die used to stamp which is the coin itself...

Where did you find this gem?

Hard to believe Webster's Dictionary going so far astray from common usage. Webster's Dictionary prides itself as representing American English as it is used, as opposed to the way it should conform to rules (meaning; root; spelling; grammar; etc.).

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

It and other definitions can

It and other definitions can be found here: http://www.1828.mshaffer.com/

Noah Webster's 1828 American Dictionary

http://www.1828-dictionary.com/

It is much more in line with Noah Webster's original intent. Teach words through their use in the Christian Bible.

The 1913 version is more secular. The 1913 version is contemporary with the 16th & 17th amendments and the Federal Reserve Act.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

On another interesting note...

compare Bouvier's Law Dictionary to todays Blacks Dictionary and watch how legal words and terms have lost their meaning...

"Necessity is the plea for every infringement of human freedom. It is argument of tyrants. It is the creed of slaves." William Pitt in the House of Commons November 18, 1783
"I know major allies who fund them" Gen. Dempsey referring to ISIS

Indeed. I often refer to

Indeed. I often refer to Bouvier when researching.

Yes of course. Interesting find. No honest person can

possibly make the case that the power to "coin Money" included the power to grant a monopoly to certain "notes of indebtedness" from a particular bank.

It is important to realize that Congress does not possess the power to print or circulate currency, notes, or negotiable instruments. In particular, they may not "emit bills of credit" as that power was specifically debated, and it was decided NOT to include a prohibition on it, lest the power mongers seize its prohibition as a backdoor to doing it anyway. This was due to the understanding that Congress ONLY has the listed powers, and that since none of them could be construed to encompass a power to emit bills of credit, therefore it would be silly to think we needed to specifically prohibit it.

Unfortunately, Congress has issued currency directly in the past.

Federal Reserve Notes however, are not issued by Congress, but by the Fed. (albeit under corporate charter from Congress)

They then granted a monopoly to these notes, saving for subsidiary base metal tokens masquerading as coins. (well, they are coins, but those coins do not constitute Money)

Fed Buyout Reported as $1B multiple times on DailyPaul.

The Fed does have a back-out clause.

The Fed Buyout Reported as $1B Today on DailyPaul (one year ago) Submitted by Mark Twain 07/09/2010 - 22:49.

    Payable in the aforementioned faith based currency [US Federal Reserve Note; promissory note]. Payable to those Robber Barrons in their own make-believe currency.

End the Fed!.. Audit Now!.. Audit Often! Gold Held Hostage in Fort Knox

16th & 17th Constitutional Amendments never ratified! Never. They were "Deemed as Passed, 1913" by Philander Knox, Secretary of State, President Wilson Administration. Legislatures were in recess, voted on different amendments, or not at all. Fraud pervaded.

Many mistakes were made all along the way; even after 98 years, few are corrected or punished.

Please follow this thread with care. The Fed & related 16th & 17th Amendments... Trail of treachery....

Do not pass go. Do not collect $200. Go directly to jail. See Money Trust Monopoly (Monopoly Game, 1935).

Regards,

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Going from decoding the past to planning for the future

can be the tricky part. I appreciate the history lessons, but please, Mark Twain, tell me how you think we should proceed from here?

I would also like to see a short proposed bill text to repeal the Federal Reserve Act that we can discuss -- from anybody.

I would like any bill to be based on the idea of buying out all "obligations" of the United States to the Federal Reserve with 1 billion in Federal Reserve note so-called dollars. That would be a deal I could live with.

ultimatecynic

End the Fed: Brief. No way in? We ain't there!

The Fed is Legal Fiction."We the People" may proceed.

  • A. Court of the obvious! No quorum. No recorded voter. No recorded presider. No recorded witness. No unanimous consent. The swift passage of both House & Senate in the wee hours of the night before Christmas Eve, December 23, 1913: wholesale looting of the treasury. Just come to our senses.
  • B. Redaction. The law that never was. Stop leading by insanity. Stop banking on nothing.
  • C. Repeal. Just say no! Congressionally speaking.
  • D. Buyout. $1 Billion buyout clause.
    • 100 M taxpayers x $10 each = $1 Billion. "We the people!" Nary, "They the United States of America." They have no authority to be an authority on this matter.
  • E. All of the above.

Replace the Fed with honest money. Dr Ron Paul & others have written extensively on this subject. Support many ways forward. Simultaneously.

Man will find ways to trade fair & honest... or otherwise.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Honest money. Keep promise. Loan real. Suffer Loss.

Generally, keep it simple as possible... no simpler.

Please consider whom will attempt a serious answer to your most provocative query:

    "It pleased me beyond measure when Yale made me a Master of Arts, because I didn't know anything about art...I rejoiced again when Missouri University made me a Doctor of Laws, because it was all clear profit, I not knowing anything about laws except how to evade them...And now at Oxford I am to be made a Doctor of Letters--all clear profit, because what I don't know about letters would make me a multi-millionaire if I could turn it into cash."
    - Mark Twain's Autobiography

Honest money: Money should have value that is acceptable to both buyer & seller with consistent value. No "elastic currency." Being worth your salt (a salt based Roman Empire) is folly. Being worth your carbon credit? Where fools rush in...

Keep promise: Dramatically reduce promises. Return to one allocating of funds that one has. Stop allowing loans out-of-thin-air. Stop monetizing debt. Stop using debt receipts as "legal tender." Wind down commitments.

Loan real: If a loan was created out-of-thin-air, return it whence it came. Dust to dust. Ashes to ashes. Salt to salt. Carbon to carbon. If loan given in good faith & of real value... good or service, return with like value, per agreement of both sides, buyer & seller.

Suffer Loss: If calamity strikes, let parties involved deal with it. Stop spreading nonsense... Stop bailing out the wayward.

Listen to wise council:

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Federal Reserve -- off by one (close enough for government work?

http://www.federalreserve.gov/aboutthefed/section31.htm

Looks like Sec. 30 to me:

http://www.supremelaw.org/stat/38/38stat275.gif (38 Stat. 275, December 23, 1913)

One copy of the Statutes at Large is here:

http://www.constitution.org/uslaw/sal/sal.htm

... but it is not complete.

(Yes, professionals are now confirming that the U.S. Code does not accurately reflect the Statutes at Large from which the U.S. Code was derived e.g. the liberal construction rule for RICO statutes is missing from Title 18: for confirmation, see 18 U.S.C. 1961 et seq.)

The Federal Reserve Act begins at 38 Stat. 251
(read "Volume 38 of the Statutes at Large,
beginning at Page 251")

RIGHT-CLICK on that Volume, and start an FTP sequence
to download the entire .pdf file for Volume 38.

Then, open with Adobe Reader.

Will the author of the $1 Billion "backout clause" please cite the Page and/or Section number(s) where it is mentioned? Thank you.

Yes, I see the discrepancy.

Are you just pointing out that there is a discrepancy?

Or are you hoping that we readers will draw further inferences?

Such as, that if there is a legislative effort to repeal the Federal Reserve Act, we must be darn sure that the I's are dotted and T's are crossed properly?

If the language of the repealing bill cites the wrong number for the section authorizing repeal, and is passed and signed into law that way, I foresee a court challenge by the Fed to the strike down the repealing law.

ultimatecynic

I like it! But we've got a

I like it!

But we've got a bunch of stooges and actors... in most of the positions. And our justice system is looking more and more like a kangaroo court.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." ~Henry Ford

SteveMT's picture

I like that term: "blackout clause"

Thanks for this review video.

Listening now.

Will Gary Fielder talk about Ron Paul?

The demented greenbackers are at it again.

Where in the Constitution is the federal government empowered to issue currency?

Congress has the power to coin money and regulate the value thereof. Do you not understand what coins are? They are not pieces of paper, but are pieces of metal. And it is clear that the Founding Fathers did not intend that the federal government issue pieces of paper, bills of credit, as this power was in the initial draft of the Constitution, but after debate, was deleted.

And if one can read, look at Article 1, Section 10, which tells us what kind of coins they intended Congress coin when they prohibited States from coining their own money and from making anything but gold and silver coins legal tender.

Absolutely the Federal Reserve Act was unconstitutional, and created a predatory, unstable, unsustainable, monetary system. But to have the federal government issue currency would be just as unconstitutional, predatory, unstable and unsustainable, and in fact would drive us into destitution even faster than the Federal Reserve scheme which at least has the deflationary drag of debt repayment to slow down the immediate hyperinflation effect.

The conclusions you write is ridiculous. Your quote of Jefferson bastardizes his views, because he opposed bills of credit and fiat, yet you try to make it look like he supports government issuing currency instead of what they really wrote in the Constitution which was that gold and silver coins were to be minded by the federal government and used in the States as legal tender.

Your populist views are antithetical to those of us who endorse freedom, and if you read Ron Paul's book, The Case for Gold, you should understand that he does not advocate government issuing paper currency, but rather gold and silver coins.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.

Thank you! Thank you! Thank you!

I've grown weary of carrying that mantel lately.

But I guess there is no rest for the vigilant.

Paper ≠ Coin

Currency ≠ Money

Federal Reserve Notes ≠ Dollars

I'm not sure why some find it so hard to fathom, but thanks for being another voice to point out that obvious fact. Only when those simple inequalities sink in will people "get it."

END the FED!

Many naively think that the specie of currency is the key (gold bugs) but the problem is the privately owned and operated Federal Reserve System.

The specie of money didn't matter when the U.S. went bankrupt in 1933 under the gold standard. Government must take back the privilege of creating all money.

END the FED before it ENDS US

bump

Awesome End the Fed videos:
http://www.libertypoet.com/endthefed/

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Clean Money!... Borax, 20 mule team clean!

Dear Daddy WarBucks,

cc: DailyPaul

Subject: Clean Money... Honestly minted...
Reference: No Credit

Many honest folk I run into know a thing or two about cleaning money... Acid washes, jewelry polish & what not.

But when cleaning a whole business property, I am mighty proud to say I got me a solution. Time tested it myself! Borax!

According to my figuring, we could clean up Washington DC while we are there. Others might have solutions too. And I don't mind help. Anyway but up in smoke, we got us some cleaning to do.

See Mark Twain... Details are exaggerated a bit, so as you all can see the fine print.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Slay

Slay the wee beastie.

Patriot News
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Robert Kennedy & The JFK Assassination

Robert Kennedy & The JFK Assassination
David Talbot ... For him, aggressively pursuing the hidden history of the Kennedy years was an attempt to find out where his country had lost its way, and perhaps to restore the hope and faith that he himself had lost as a young American growing up in the 1960s.

Ian welcomed Salon.com founder David Talbot, who discussed Robert F. Kennedy's secret search for the truth about his brother's assassination. http://www.coasttocoastam.com/guest/talbot-david/6986

And never forget, “Humans, despite our artistic pretensions, our sophistication and many accomplishments, owe the fact of our existence to a six-inch layer of topsoil and the fact that it rains.”