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He says the Jewish religion is essentially a disguise for a racial imperative. "We can live among other people and states [by] persuading them that the Jews are not a distinct people but the representatives of a religious faith..." "Jewish" power was created through control of the monetary system. "Through our national bank, the Federal Reserve, we extend book credit which we create from nothing to all local banks ...[Thus] we bring industry, management and labour into our debt...and pit management against labour so they will never unite and attack us and usher in a debt-free industrial utopia." Harold Rosenthal is credible when he says: "Through our national bank, the Federal Reserve, we extend book credit which we create from nothing to all local banks ... [Thus] we bring industry, management and labor into our debt...and pit management against labor so they will never unite and attack us and usher in a debt-free industrial utopia." http://www.davidicke.net/emagazine/vol14/research/bank-secrets.html The following post is from a booklet published by Monetary Science Publishing. It is it the record of testimony given in a suit brought at common law in Minnesota in 1968 -- not all that long ago. INTRODUCTION Explaining what the banks don't want you to know may shatter most of the public's religiously entrenched assumptions about money and banking. What the general public "thinks" it knows about money and banking is largely based upon a collection of canards gleaned from TV, radio, newspapers and their own personal experiences with money and banking. There is no academic curriculum that offers an intellectively
[sic] comprehensive course in the modern "Credit Money"
mechanism and banking. There is no academic or news media that
explains the awesome power possessed in having access to clearing
your own checks. If you and I could clear our own checks, through
our own operated check-clearing house, we could then create "checkbook"
money to buy/pay for our investments, just like the banks do.
Checkbook or Credit Money is not a cash currency "representing"
money. Credit Money, better In the following pages you will find where high bank officials admitted that banks do create checkbook "deposit credits" to the credit of their clients' checking accounts, as their loans and investment payment funds. You will also learn how an attorney has successfully voided a bank foreclosure, because the bank admitted creating the checkbook "credits" as the funds it loaned to its client. Even though attorney Jerome Daly was forced into a disbarment procedure for challenging the bankers' recondite practices, he successfully demonstrated that any knowledgeable attorney in the bank "credit money" mechanism in a just court can successfully challenge the bankers' unrelenting foreclosure of homes, businesses, farms and mills. -- Peter Cook, M.Sc., June 3, 1993 A LANDMARK DECISION Reprinted in part from The Daily Eagle, Issue of Feb. 7, 1969 The fate of companies and individuals -- and governments is entirely at the mercy of banks. Their power is stupendous, both in creating and granting of loans, but in their arbitrary recall, with or without notice. This Court decision in the United States may well be the beginning of the end of some of their powers. A Minnesota Trial Court's decision holding the Federal Reserve Act unconstitutional and void; Holding the National Banking Act unconstitutional and void; Declaring a mortgage acquired by the First National Bank of Montgomery, Minnesota in the regular course of its business, along with the foreclosure and the Sheriff's Sale to be void. This decision, which is legally sound, has the effect of declaring all private mortgages on real and personal property, and all U.S. and State bonds held by the Federal Reserve, National and State Banks to be null and void. This amounts to an emancipation of this Nation from personal, national and state debt purportedly owed to this banking system. Every American owes it to himself, his country, and to the people of the world, for that matter, to study this decision very carefully and to understand it. For upon it hangs the question of freedom or slavery. On May 8, 1964 the writer Mr. Jerome Daly executed a Note and Mortgage to the First National Bank of Montgomery, Minnesota, which is a member of the Federal Reserve Bank of Minneapolis. Both Banks are private owned and are a part of the Federal Reserve Banking System. In the Spring of 1967 Mr. Daly was in arrears $476.00 in the payments on this Note and Mortgage. The Note was secured by a Mortgage on real property in Spring Lake Township in Scott County, Minnesota. The Bank foreclosed by advertisement and bought the property at a Sheriff's Sale held on June 26, 1967. Mr. Daly made no further payments after June 26, 1967 and did not redeem within the 12 month period of time allotted by law after the Sheriff's Sale. The Bank brought an action to recover the possession to the property in the Justice of the Peace Court at Savage, Minnesota. The first 2 Justices were disqualified by Affidavit of Prejudice. The first by Mr. Daly and the second by the bank. A third one refused to handle the case. It was then sent, pursuant to law, to Martin V. Mahoney, Justice of Peace, Credit River Township, Scott County, Minnesota, who presided at a Jury trial on December 7, 1968. The Jury found the Note and Mortgage to be void for failure of a lawful consideration and refused to give any validity to the Sheriff's Sale. Verdict was for Mr. Daly with costs in the amount of $75.00. EVIL PRACTICE The president of the Bank admitted that the Bank created the money and credit upon its books by which it acquired or gave as consideration for the Note; that this was standard banking practice, that the credit first came into existence when they created it; that he knew of no United States Statutes which gave them the right to do this. This is the universal practice of these banks. Mr. Morgan appeared at the trial on December 7, 1968 and appeared
as a witness to be candid, open, direct, experienced and truthful.
He testified to 20 years of experience with the Bank of America
in Los Angeles, the Marquette National Bank of Minneapolis and
the Plaintiff in this case. He seemed to be familiar with the
operations of the Federal Reserve System. NOTE: It has never been doubted that a Note given in a Consideration which is prohibited by law is void. It has been determined, independent of Acts of Congress, that sailing under the license of an enemy is illegal. The emission of Bills of Credit upon the books of these private corporations, for the purposes of private gain is not warranted by the Constitution of the United States and is unlawful. No complaint was made by the bank that the bank did not receive a fair trial. From the admissions made by Mr. Morgan, the path of duty was made direct and clear for the jury. Their verdict could not reasonably have been otherwise. Justice was rendered completely and without denial, promptly and without delay, freely and without purchase, comfortable to the laws in this Court on December 7, 1968. The Justice who heard the case handed down the opinion attached and included herein. Its reasoning is sound. It will withstand the test of time. This is the first time the question has been passed upon in the United States. I predict that this decision will go into the history books as one of the great documents of American history. It is a huge cornerstone wrenched from the temple of Imperialism and planted as one of the solid foundation stones of Liberty. COURT MEMORANDUM The issues in this case were simple. There was no material dispute on the facts for the jury to resolve. Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of their interlocking activity and practices, and both being Banking Institutions, incorporated under the laws of the United States, are in the law to be treated as one and the same bank, did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note. THE CREDIT RIVER CASE... STATE OF MINNESOTA IN JUSTICE COURT TOWNSHIP OF CREDIT RIVER MARTIN V. MAHONEY, JUSTICE First National Bank of Montgomery, Plaintiff, vs. JUDGE & DECREE Jerome Daly, Defendant. The above entitled action came on before the Court and a Jury of 12 on December 7, 1968 at 10:00 A.M. Plaintiff appeared by its President Lawrence V. Morgan and was represented by its Counsel Theodore R. Mellby. Defendant appeared on his own behalf. A Jury of Talesmen were called, empanelled and sworn to try the issues in this Case. Lawrence V. Morgan was the only witness called for Plaintiff and Defendant testified as the only witness in his own behalf. Plaintiff brought this as a Common Law action for the recovery of the possession of Lot 19, Fairview Beach, Scott County, Minn. Plaintiff claimed titled to the Real Property in question by foreclosure of a Note and Mortgage Deed dated May 8, 1964 which Plaintiff claimed was in default at the time foreclosure proceedings were started. Defendant appeared and answered that the Plaintiff created the money and credit upon its own books by bookkeeping entry as the consideration for the Note and Mortgage of May 8, 1964 and alleged failure of consideration for the Mortgage Deed and alleged that the Sheriff's sale passed no title to Plaintiff. The issues tried to the Jury were whether there was a lawful consideration and whether Defendant had waived his rights to complain about the consideration having paid on the Note for almost 3 years. Mr. Morgan admitted that all of the money or credit which was used as a consideration was created upon their books, that this was standard banking practice exercised by their bank in combination with the Federal Reserve Bank of Minneapolis, another private Bank, further that he knew of no United States Statute or Law that gave the Plaintiff the authority to do this. Plaintiff further claimed that Defendant by using the ledger book created credit and by paying on the Note and Mortgage waived any right to complain about the Consideration and that Defendant was estopped from doing so. At 12:15 on December 7, 1968 the Jury returned a unanimous verdict for the Defendant. Now therefore, by virtue of the authority vested in me pursuant to the Declaration of Independence, the Northwest Ordinance of 1978, the Constitution of the United States and the Constitution and laws of the State of Minnesota not inconsistent therewith: IT IS HEREBY ORDERED, ADJUDGED & DECREED: 1. That Plaintiff is not entitled to recover the possession of Lot 19, Fairview Beach, Scott County, Minnesota according to the Plat thereof on file in the Register of Deeds office. 2. That because of failure of a lawful consideration the Note and Mortgage dated May 8, 1964 are null and void. 3. That the Sheriff's sale of the above described premises held on June 26, 1967 is null and void, of no effect. 4. That Plaintiff has no right, title or interest in said premises or lien thereon, as is above described. 5. That any provision in the Minnesota Constitution and any Minnesota Statute limiting the Jurisdiction of this Court is repugnant to the Constitution of the United States and to the Bill of Rights of the Minnesota Constitution and is null and void and that this Court has Jurisdiction to render complete Justice in this Cause. 6. That Defendant is awarded costs in the sum of $75.00 and execution is hereby issued therefore. 7. A 10 day stay is granted. 8. The following memorandum and any supplemental memorandum made and filed by this Court in support of this Judgment is hereby made a part hereof by reference. BY THE COURT MARTIN V. MAHONEY ---------------------------------------------------------- MEMORANDUM The issues in this case were simple. There was no material dispute on the facts for the Jury to resolve. Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of their interlocking activity and practices, and both being Banking Institutions Incorporated under the Laws of the United States, are in the Law to be treated as one and the same Bank, did create the entire $14,000.00 in money or credit upon its own books by bookkeeping entry. That this was the Consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note. See Anheuser-Busch Brewing Co. v. Emma Mason, 44 Minn. 318, 46 N.W. 558. The Jury found there was no lawful consideration and I agree. Only God can create something of value out of nothing. Even if Defendant could be charged with waiver or estoppel as a matter of Law this is no defense to the Plaintiff. The Law leaves wrongdoers where it finds them. See sections 50, 51 and 52 of Am. Jur 2d. "Actions" on page 584 -- "no action will lie to recover on a claim based upon, or in any manner depending upon, a fraudulent, illegal, or immoral transaction or contract to which Plaintiff was a party." Plaintiff's act of creating credit is not authorized by the Constitution and Laws of the United States, is unconstitutional and void, and is not a lawful consideration in the eyes of the Law to support any thing or upon which any lawful rights can be built. Nothing in the Constitution of the United States limits the Jurisdiction of this Court, which is one of original Jurisdiction with right of trial by Jury guaranteed. This is a Common Law Action. Minnesota cannot limit or impair the power of this Court to render Complete Justice between the parties. Any provisions in the Constitution and laws of Minnesota which attempt to do so are repugnant to the Constitution of the United States and are void. No question as to the Jurisdiction of this Court was raised by either party at the trial. Both parties were given complete liberty to submit any and all facts and law to the Jury, at least in so far as they saw fit. No complaint was made by Plaintiff that plaintiff did not receive a fair trial. From the admissions made by Mr. Morgan the path of duty was made direct and clear for the Jury. Their Verdict could not reasonably have been otherwise. Justice was rendered completely and without denial, promptly and without delay, freely and without purchase, comfortable to the laws in this Court on December 7, 1968. BY THE COURT December 9, 1968 TESTIMONY OF: RONALD GRAHAM, Vice President and General Counsel of the Federal Reserve Bank of Minneapolis taken Wednesday February 11, 1970 in the disbarment proceedings brought by the Minnesota State Board of Law Examiners against Jerome Daly to have Mr. Daly disbarred from the practice of law. This Testimony was taken under oath: Wednesday, February 11, 1970 (Whereupon, the following proceedings were duly had:) MR. DAVIS: Mr. Graham. being first duly sworn, testified BY MR. DAVIS: Q. Will you state your full name please. Q. Your address, Mr. Graham? Q. What is your profession? Q. By whom are you employed? Q. For how long a time have you been counsel for the Federal
Reserve Bank of Minneapolis? Q. In the course of your duties with the Federal Reserve Bank
of Minneapolis, have you had occasion to be involved in litigation
with one Jerome Daly? Q. Have you received any inquiries from other agencies of
government or other persons within the banking group concerning
these actions commenced by Mr. Daly? Q. Do you have any compilation or list of inquiries that were
made either to you or to the board, the Federal Reserve Board? Q. Do you have that letter with you? Q. I show you Petitioners Exhibit Number 66, will you identify
that for the Court? Q. And I show you Petitioner's Exhibit 67 and ask you to identify
that. CROSS-EXAMINATION Mr. Jerome Daly's cross-examination consisted of two arguments. The first part of his argument was to elicit confirmation from Mr. Ronald D. Graham, a qualified spokesman for the Federal Reserve banks, that the Federal Reserve banks and the commercial banks do create Deposit (checkbook) Money on their books as their lending and investing money media. The second part of Mr. Daly's argument was the convertibility of the pocket paper currency into gold and/or silver is a separate argument, and irrelevant to the mechanics of Deposit (checkbook) Money creation. Therefore, to make it easier for the reader to understand the mechanics of where and how bank Deposit (checkbook) Money (generally referred to as "credit" is created -- all questions and answers referring to currency convertibility were edited (left) out. BY MR. DALY: Q. You say you have been with the Federal Reserve Bank for
how long? Q. And you are a Vice President of the bank? Q. And you say that you have been in the practice of law in
the state of Minnesota? Q. And also in the United States District Court? (WHEREUPON, Respondent's Exhibit J was duly marked for purposes of identification.) Q. Showing you Respondent's Exhibit J, I will ask you if you
can identify that. Q. And what issue is that? Q. Are you familiar with that, Respondent's Exhibit J? Q. Have you looked it over? Q. Generally, do you agree that the statements in there are true?A. As to the functions and so forth, yes, sir. Q. That is the official publication of the Board of Governors,
is it not true? MR. DALY: I offer in evidence Exhibit J. Q. Now, your Federal Reserve Banks, there are twelve of them
in the United States, aren't there? Q. And more or less the head bank is in New York, is it not? Q. Now, by the way, these Federal Reserve Banks have employees,
do they not? Q. And there are none of these employees on Civil Service? Q. That is a true statement, is it not? Q. You are not on Civil Service, yourself? Q. And the Federal Reserve banks pay taxes to the state for
the real estate they are situated upon? Q. And the Federal Reserve banks are owned by the member banks,
are they not? Q. I withdraw the question. The Federal Reserve corporation
is a corporation organized and existing by virtue of the laws
of the United States, is that correct? Q. And the member banks are required to subscribe to so much
stock? Q. But this is non-voting stock, isn't that correct? Q. And the member banks, like the First National here in Minneapolis;
Northwestern National; they have a right to use the services
of the Federal Reserve bank? Q. And the First National Bank of Montgomery is one of your
member banks? Q. Now, calling your attention to page seventy-five in that
book, will you read the last two paragraphs out loud. Q. I think that is what I want. New Federal Reserve money, when it is not wanted by the public for hand-to-hand circulation, becomes the reserves of member banks. After it leaves the hands of the first bank acquiring it, as explained above, the new reserve money continues to expand into deposit money as it passes from bank to bank until deposits stand in some established multiple of the additional reserve funds that Federal Reserve action has supplied. Q. Now, the mechanics, can you explain the mechanics by which
the Federal Reserve bank runs its open market committee. Q. Yes. Q. And the seven members of the Board of Governors? Q. Now, can you elaborate on that. Q. Expand or reduce the reserves? Q. Now does the Federal Reserve Bank expand its reserves? Q. Or its own reserves? Q. So that seven members of the Board of Governors and the
twelve presidents of the Federal Reserve banks have the control
over the volume of credit that is made available to the public? Q. And this has a direct bearing upon the amount of money
that is available to the public? Q. Now, the Federal Reserve Bank actually creates credit on
its books, does it not? Q. It can credit the account of the individual bank by making
a loan to the bank? Q. And when the Federal Reserve bank makes the loan or that
credit first comes into existence, is when they manufacture it
on the books? Q. And it first comes into existence at that time?A. These are temporary loans. Q. And it doesn't make any difference if it is temporary or
long term, the first time it comes into existence is when it
is credited on the books of the bank? Q. And as a practical matter, this credit never leaves the
books of some bank; it is transferred by check entry from one
bank to another? Q. What percentage of the volume of business was done by check
in this country? Q. Now, when a member bank makes a loan, what is the percentage
of so-called reserves that they are supposed to have on hand? Q. What is it at present? Q. In other words, when say like the First National Bank of
Montgomery wants to make a loan of one hundred dollars; if it
has a reserve of seventeen dollars on deposit with our bank,
it can make a loan of a hundred dollars? Q. If the First National Bank decides to lend it? Q. Does the First National Bank of Montgomery, do they have
to get the permission of the Federal Reserve Bank of Minneapolis
before they can make a loan? Q. To an individual? Q. I am talking about the individual citizen that walks into
a bank and wants to borrow ten thousand dollars from the bank
out in the country. Q. Does that bank, the commercial banks can also create credit
on their books? Q. To what extent can they do that? Q. Is there a limit upon them? Is there a limit to the extent
that they can do that? Q. So, there is a percentage of limit? Q. They also create credit on their books? Q. And this credit first comes into being when they create
it? Q. But in any event, this is the first time that this credit
comes into existence, they create it on their books? Q. So, in effect, the books of the member banks amount to
a bill of credit, do they not? Q. There has been some argument about that, isn't that right? Q. But at any rate, the credit is manufactured on the books
though? Q. Now, have you had a chance to read over my publication,
the Daly Eagle? Q. There is a picture of a note in here, on page twelve, a
one dollar Federal Reserve note? Q. Is this a sample of what is in circulation? Q. Yes. Q. Well, that is a reasonably accurate portrayal, is that
right? Q. Your bank acquires United States obligations by creating
credit on its books, do they not? Q. But the physical notes themselves, they are made up by
the Bureau of Printing and Engraving? Q. And that is under the control of what, the Treasury Department? Q. The notes themselves, you get these notes in denominations
from one dollar up to ten thousand dollars, is that right? Q. And your bank gets them for the cost of printing? Q. Well, now, I believe you indicated that you had some correspondence
from the head office of the Board of Governors of the Federal
Reserve System? Q. With your self, for purposes of following it to the Bar
Association, is that right? Q. This is Myers' Finance Review? Q. From Calgary, Alberta, Canada? Q. Did you ever see his review before this? Q. May 27, 1969? Q. And this is the first publication in which he published
it, is that right? Q. This story with reference to the Credit River verdict? (WHEREUPON, Respondent's Exhibit K was marked for purposes
of Q. Do you recognize that as a copy that you saw? Q. And how soon after May 27th of 1969 did you see that? Q. Well, it is fair to say that you gentlemen that are counsel
for the Federal Reserve banks and the general counsel for the
Board of Governors, you are keeping very close tab on this dispute? Q. And you have since 1963? Q. And by the way, the Board of Governors of the Federal Reserve
System are independent of the control by Congress, are they not? Q. Well, can you elaborate on why it is not true? Q. Right. Q. That is what I am driving at. Q. And the Board of Governors of the Federal Reserve System
controls volume of credit that is put into circulation? Q. And that, under the present laws, is independent of any
act of Congress? Q. And the determination of the interest rate is not subject
to any Congressional mandate? Q. Actions of the Open Market Committee? Q. Isn't that set by basically, it is set or controlled, that
is the prime rate is set and controlled by the Board of Governors? Q. Pardon me? Q. What do they do with reference to the interest rate? Q. Isn't it pure and simple, the rate of interest that the
Federal Reserve bank charges the member banks for the credit
that they create on their books? Q. And these loans and advancements are created on the books
of the Federal Reserve bank? Q. When they create the credit on their books, it comes into
existence? Q. This discount rate is set by the Board of Governors of
the Federal Reserve System? Q. So if all of the member banks get together and agree to
set the discount rate, that is the federal reserve banks get
together and set the discount rate, the Board of Governors doesn't
have anything to say about it? Q. And the people in charge of the Federal Reserve banks are
not, none of them are government employees as such? Q. Right. Q. And none of them are government employees as such then? MR. DALY: I think that is all the questions I have. THE END OF MR. JEROME DALY'S CROSS-EXAMINATION. The Federal Reserve Bank of Boston in a 1977 publication titled: "The Federal Reserve, Putting It Simply", writes: "The most important thing to understand about money is that money is artificial -- that is to say, that money is entirely a man-made creation. It isn't an element of nature (such as gold or silver). It is simply a creation of civilized man: it always has been and it always will be." It is also important to understand that all *artificial* money, better known as "Bank Credit", is created by the commercial banks, first in the form of *checking account* "deposit credits" -- either as bank expenditures, bank loans, or bank investment monies -- and most Bank Credit money remains and circulates in that *deposit credits* form by means of checks -- until some is (temporarily) converted into physical cash currency notes. The Treasury's Engraving and Printing Bureau tailor-prints the Federal Reserve notes cash currency for the 12 Federal Reserve banks at the cost of printing, about 2 cents per note. The Federal Reserve banks then distribute the cash currency amongst the commercial banks by charging it to their (Fed provided) reserve accounts. The banks then distribute the cash currency amongst the general commerce and public, by exchanging their obtained cash currency for the public's checking or savings account *deposit credits*. In other words, the general public gets its cash currency from banks, or from someone who got it from some bank by having it charged, either to his checking or savings account. --------------------------------------- PRESIDENT OF THE BANK OF ENGLAND... Quoting Sir Josiah Stamp at the time he was president of the Bank of England and president of the English Railway System. His directorates filled several pages of WHO'S WHO. In the late 1920s, in an informal talk to about 150 history, economics and social science professors, at the University of Texas Josiah Stamp explained the following: "Banking was conceived in iniquity and born in sin...
The bankers own the world. Take it away from them, but leave
them the power to create money and control credit, with a flick
of the pen they will create enough money to buy it back again...
Take this power away from bankers and all great fortunes like
mine (he was the second richest man in Great Britain) will disappear,
and they ought to disappear, for this world would then be a happier
and better world to live in. My sons should not object. They
are well educated, and should be willing to take their places
in the business world and forge their own fortunes... But, if
you want to continue to be slaves of bankers and pay the cost
of your own enslavement, then let the bankers continue to create
money and control credit... However, as long as governments will
legalize such things, a man is foolish not to be a banker."
http://www9.pair.com/xpoez/money/cook [link unavailable]
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