Paper Money – Obligations of the UNITED STATES CORP

Ambassador Lee Emil Wanta
Wed, Apr 2, 2014
Subject: FRNs Obligations of the United States Corporation
www.MorningLiberty.com 

“PAPER MONEY” Obligations of the United States Corporation (U.S.) 
See :
http://www.scribd.com/doc/215067803/PAPER-MONEY-Obligations-of-the-United-States-Corporation-U-S

Congressional Record, March 9, 1933 on HR 1491 p. 83. "Under the new law the money
is issued to the banks in return for government obligations, bills of exchange,
drafts, notes, trade acceptances, and bankers acceptances. The money will be worth
100 cents on the dollar, because it is backed by the credit of the nation. It will
represent a mortgage on all the homes, and other property of all the people of the
nation." 


Whereas defined pursuant to titles eighteen sections eight: The term "obligation or
other security of the United States" includes all bonds, certificates of
indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank
notes, coupons, United States notes, Treasury notes, gold certificates, silver
certificates, fractional notes, certificates of deposit, bills, checks, or drafts
for money, drawn by or upon authorized officers of the United States, stamps and
other representatives of value, of whatever denomination, issued under any Act of
Congress, and canceled United States stamps.  


Whereas defined pursuant to: 18 U.S.C. §8, frns are “obligation[s]…of the United
States.” Whereas defined pursuant to: 31 U.S.C. 31§742…”obligations of the United
States, shall be exempt from taxation by or under state or municipal or local
authority.” 


The exemption applies to each form of taxation that would require the obligation,
the interest on the obligation, or both, to be considered in computing a tax, except
- (1) a nondiscriminatory franchise tax or another nonproperty tax instead of a
franchise tax, imposed on a corporation; and (2) an estate or inheritance tax.
(emphasis added) 


Federal reserve notes are not money until they are monetized and issued by a Federal
reserve bank. That those “Federal reserve notes” could be issued by the “Federal
Reserve Board,” not by any Bank per se; for a one singular purpose, namely, “for the
purpose of making advances to Federal reserve banks and for no other purpose.” To
obtain notes, a Federal reserve bank must pledge collateral equal to the face value
of the note. Collateral must consist of the following assets, alone or in any
combination: 
1) Gold certificates, 
2) Special drawing right certificates, 
3) U.S. government securities, and 
4) “Eligible paper,” as described by statue. Federal Reserve notes are obligations
of the United States, and have a first lien on assets of the issuing Federal Reserve
Bank. Money without backing is worthless. Federal reserve notes are legal tender
currency whereas defined pursuant to: (31 U.S.C. 5103). 


They are issued by the twelve reserve banks defined pursuant to section 16 of the
federal reserve act of 1913 (12 U.S.C. 411) a commercial bank which belongs to the
Federal Reserve System can obtain Federal reserve notes from the Federal reserve
bank in its district whenever it wishes, but it must pay for them in full, dollar
for dollar, by drawing down its account with its district Federal reserve bank. The
Federal reserve bank in turn obtains the notes from the bureau of engraving and
printing in the United States Treasury Department. It pays to the bureau the cost of
producing the notes. The Federal reserve notes then become liabilities of the twelve
Federal reserve banks. Because the notes are Federal reserve liabilities, the
issuing banks records both a liability and an asset when it receives the notes from
the bureau of engraving and printing, and therefore does not show any earnings as a
result of the transaction (double entry bookkeeping). In addition to being
liabilities of the Federal reserve banks, Federal reserve notes are obligations of
the United States government whereas defined pursuant to: (12 U.S.C. 411). 


Congress has specified that a Federal reserve bank must hold collateral (chiefly
gold certificates and United States securities) equal in value to the Federal
reserve notes which that bank receives whereas defined pursuant to: (12 U.S.C. 412).
The purpose of this section, initially enacted in 1913, was to provide backing for
the note issue. The idea was that if the Federal Reserve System were ever dissolved,
the United States would take over the notes (liabilities) thus meeting the
requirements of [12 U.S.C.] 411, but would also take over the assets, which would be
of equal value. The notes are a first lien on all the assets of the Federal reserve
banks, as well as on the collateral specifically held against them whereas defined
pursuant to: (12 U.S.C. 412). Federal reserve notes are not redeemable in gold or
silver or in any other commodity. They have not been redeemable since 1933. Thus,
after 1933, a Federal reserve note did not represent a promise to pay gold or
anything else, even though the term “note” was retained as part of the name of the
currency. In the sense that they are not redeemable, Federal reserve notes have not
been backed by anything since 1933. 


They are valued not for themselves, but for what they will buy. In another sense,
because they are a legal tender, Federal reserve notes are “backed” by all goods and
services in the economy. Frns are both “liabilities” and “assets,” so what are they?
Accounting units (double entry bookkeeping). What else could they be? “The issuing
bank records both a liability and asset when it receives the notes from the bureau
of engraving and printing, and therefore does not show any earnings as a result of
the transaction.” This implies that the liabilities and assets inherent in each frn
are equal, and therefore the value of any frn is zero. i.e., I have a $100 frn that
represents $100 in assets and $100 in liabilities – what is my frn worth? Subtract
the liabilities from the assets. If they’re equal ($100 - $100), the answer is zero.
So what is my frn? It’s a unit of measure, no different from inches, feet, pounds,
tons, and centigrams. It’s an accounting unit. A number. What is the tax on a
number? Is the tax on 100,000 more than the tax on $1,000? It depends. 100,000 what?
1,000 what? The tax on 100,000 dollars is clearly more than the tax on 1,000
pennies. The tax on 1,000 dollars and 100,000 pennies is identical. And a tax on
1,000 pennies is greater than the tax on 100,000 grains of sand. The taxable item is
not the unit of measurement, but the commodity it describes. Therefore, is the tax
on $100 in gold-backed money the same as the tax on $100 frn? 



Can people be taxed on the basis of an income denominated in units of measurement
that the issuing Federal reserve bank implicitly says are worth zero? If the Federal
reserve bank can count a frn as both an asset and liability, can I do the same and
also have no earnings to be taxed? There is some supporting law. Defined pursuant
to: 31 U.S.C. §742 (which deals with “public debt”): “exemption from taxation.
Except as otherwise provided by law, all stocks, bonds, treasury notes, and other
obligations of the United States, shall be exempt from taxation by or under state or
municipal or local authority. This exemption extends to every form of taxation that
would require that either the obligations or the interest thereon, or both, be
considered, directly or indirectly, in the computation of the tax, except
nondiscriminatory franchise or other non-property taxes in lieu thereof imposed on
corporations and except estate taxes or inheritance taxes.”  (R.S. & 3701; Sept. 22,
1959, Pub. L. 86-346, Title I, § 105(a), 73 Stat. 622.) [emph. add.] Now consider,
whereas defined pursuant to: 18 U.S.C. §8: “obligation or other security of the
United States (Inc) defined. “the term obligation or other security of the United
States includes all bonds, certificates of indebtedness, national bank currency,
federal reserve notes, federal reserve bank notes, coupons, gold certificates,
silver certificates, fractional notes, certificates of deposit, bills, checks, or
drafts for money, drawn by or upon authorized officers of the United States, stamps
and other representatives of value, of whatever denomination, issued under any act
of congress, and canceled united states stamps.” [emph. add.]  

Finis/m418.intel.ops/paris-wien-nato-bruxelles-europa-london-sin-rf/all 

 

 


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