Fact sheet on the money issue
within the United States of America
Since U.S., Inc. Declared Bankruptcy – March 9th, 1933
1) U.S. Bankruptcy:
See; Senate Report 93-549, 93rd Congress, 1st Session (1973), “Summary of Emergency Power Statutes”, consisting of 607 pages. The United States went “Bankrupt” in 1933 and was declared so by President Roosevelt by Executive Orders 6073, 6102, 6111 and by Executive Order 6260 on March 9, 1933 (See: Senate Report 93-549, pgs. 187 & 594), under the “Trading with the Enemy Act” (Sixty-Fifth Congress, Sess. I, Chs. 105, 106, October 6, 1917), and as codified at 12 U.S.C.A. 95a. On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system, the Comptroller of the Currency and the Secretary of the United States Treasury for criminal acts. The petition for Articles of Impeachment was thereafter referred to the Judiciary Committee, and has yet to be acted upon. (See: Congressional Record, pp. 4055-4058) Congress confirmed the Bankruptcy on June 5, 1933, and impaired the obligations and considerations of contracts through the “Joint Resolution To Suspend The Gold Standard And Abrogate The Gold Clause, June 5, 1933”),
2) Intent of HJR-192:
Resolved by the Senate and House of Representatives of the United State of America in Congress assembled, “That (a) every provision contained in or made with respect to any obligation which purports to give the obligee a right to require payment in gold or a particular kind of coin or currency, or in an amount in money of the United States measured thereby, is declared to be against public policy; …Every obligation, heretofore or hereafter incurred, whether or not any such provision is contained therein or made with respect thereto, shall be discharged upon payment, dollar for dollar, in any coin or currency which at the time of payment is legal tender for public debts.”
3) STANEK v. WHITE - Supreme Court of Minnesota – 1927:
Chief Justice Wilson: “The original debt was not paid. The discharge in bankruptcy operated as a bar to enforcement. The debt could be revived with a new promise, which in Minnesota, must be in writing. The moral obligation involved in the original debt affords a sufficient consideration to suppose a new promise to pay the debt. Liability rests upon the promise to pay, not on the original note. The discharge took the enforceability from the original note which still evidenced the moral obligation (but we’re in state National Bankruptcy – there are no ‘commercial’ morals!), and the new note revived the legal obligation. There is a distinction between a debt discharged and one paid. When discharged, the debt still exists, though divested of its character as a legal obligation during the consideration of the discharge.
4) Federal Reserve Notes:
In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper, deposits merely book entries.