The Law Still Says That Federal Reserve Notes Are Not Money

November 21st, 2009

They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

UNITED STATES CODE
TITLE 12 > CHAPTER 3 > SUBCHAPTER XII > § 411

http://www.law.cornell.edu/uscode/12/411.html

§ 411. Issuance to reserve banks; nature of obligation; redemption

Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized.

The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

Federal Reserve Act
Section 16. Note Issues

http://www.federalreserve.gov/aboutthefed/section16.htm

1. Issuance of Federal Reserve Notes; Nature of Obligation; Where Redeemable
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

[12 USC 411. As amended by act of Jan. 30, 1934 (48 Stat. 337). For redemption of Federal reserve notes whose bank of issue cannot be identified, see act of June 13, 1933.]

However, if you are not an authorized Federal reserve bank, you might have a tough time redeeming your Federal reserve notes for lawful money at one of the 12 Federal Reserve banks.

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3 Responses to “The Law Still Says That Federal Reserve Notes Are Not Money”

  1. Will Says:

    Federal Reserve Accounting Unit Dollar = F.R.A.U.D!

  2. fulltime Says:

    Page 7 of 15
    The legal statutory and professional definitions of “bank”, “banking”, and “banker”
    used in the United States Code and Code of Federal Regulations are not those commonly
    understood for these terms and have made the statutory definition of “Bank”
    accordingly:
    UCC 4-105 PART 1 “Bank” means a person engaged in the business of banking,”
    12CFRSec. 229.2 Definitions (e) Bank means—“the term bank also includes any
    person engaged in the business of banking,”
    12CFR Sec. 210.2 Definitions. (d)” Bank means any person engaged in the business
    of banking.”
    USC Title 12 Sec. 1813. –Definitions of Bank and Related Terms. – (1) Bank. – The
    term ”bank” – (A) “means any national bank, State bank, and District bank, and any
    Federal branch and insured branch;”
    Black’s Law Dictionary, 5th Edition, page 133, defines a “Banker” as,
    “In general sense, person that engages in business of banking. In narrower meaning,
    a private person………; who is engaged in the business of banking without being
    incorporated. Under some statutes, an individual banker, as distinguished from a
    “private banker”, is a person who, having complied with the statutory
    requirements, has received authority from the state to engage in the business of
    banking, while a private banker is a person engaged in banking without having any
    special privileges or authority from the state. “
    NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

    “Banking”- Is partly and optionally defined as “The business of issuing notes for
    circulation……, negotiating bills.”
    Black’s Law Dictionary, 5th Edition, page 133, defines “Banking”:
    “The business of banking, as defined by law and custom, consists in the issue of
    notes ……intended to circulate as money……..
    And defines a “Banker’s Note” as:
    “A commercial instrument resembling a bank note in every particular except that it is
    given by a private banker or unincorporated banking institution.”
    Federal Statute does not specifically define “national bank” and “national banking
    association” in those sections where these uses are legislated on to exclude a private
    banker or unincorporated banking institution.
    It does define these terms to the exclusion of such persons in the chapters and sections
    where the issue and circulation of notes by national banks has been repealed or
    forbidden.

    “In the absence of a statutory definition, courts give terms their ordinary meaning.
    “Bass, Terri L. v. Stolper, Koritzinsky, 111 F.3d 1325,7thCir. Apps. (1996).
    As the U.S. Supreme Court noted, “We have stated time and again that courts must
    presume that a legislature says in a statute what it means and means in a statute
    what it says there.” See, e.g., United States v. Ron Pair Enterprises, Inc., 489 U.S. 235,
    241 -242 (1989); United States v. Goldenberg,168 U.S. 95, 102 -103 (1897);
    “The legislative purpose is expressed by the ordinary meaning of the words used.
    “Richards v. United States, 369 U.S.1 (1962).

    Therefore, as noted above, the legal definitions relating to ‘legal tender’ have been
    written by Congress and maintained as such to be both exclusive, where necessary, and
    inclusive, where appropriate, to provide in its statutory definitions of legal tender for the
    inclusion of all those, who by definition of private, unincorporated persons engaged in
    the business of banking to issue notes against the obligation of the United States for
    recovery on their risk, whose private assets and property are being used to collateralize
    the obligations of the United States since 1933, as collectively and nationally
    constituting a legal class of persons being a “national bank” or “national banking
    association” with the right to issue such notes against The Obligation of THE
    UNITED STATES for equity interest recovery due and accrued to these Principals
    and Sureties of the United States backing the obligations of US currency and
    credit; as a means for the legal tender discharge of lawful debts in commerce as
    remedy due them in conjunction with US obligations to the discharge of that
    portion of the public debt, which is provided for in the present financial
    reorganization still in effect and ongoing since 1933. [12 USC 411, 18 USC 8, 12
    USC; ch. 6, 38 Stat. 251 Sect 14(a), 31 USC 5118, 3123. with rights protected under the
    14th Amendment of the United States Constitution, by the U.S. Supreme Court in United
    States v. Russell (13 Wall, 623, 627), Pearlman v. Reliance Ins. Co., 371 U.S.
    132,136,137 (1962), The United States v. Hooe, 3 Cranch (U.S.)73(1805), and in
    conformity with the U.S. Supreme Court 79 U.S. 287 (1870), 172 U.S.48 ( 1898), and as
    confirmed at 307 U.S. 247(1939).]

  3. V Kelly Says:

    Thanks for a good article. I guess one of the main problems is in the rubbery definition, legally speaking, of what a ‘person’ is. The status of being a ‘person’ can infect everything we do, and what happens to us, especially when we are forced to interact with corporations for goods and services.

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