Legal Tender

" . . . that I should bear witness unto the truth." -- John 18:33 // David E. Robinson, Publisher
Legal Tender

1. . . . Legal tender can be made in the form of a national bank note or note of a national banking association under the authority of the United States Code. (UCC 4-105, 12 CFR Sec. 229.2, 210.2, 12 USC 1813)

2. . . . 31 USC 392, 5103 and 18 USC 8 officially define a note of a national banking association to be a statutory legal tender obligation of THE UNITED STATES, issued in accordance with HJR-192 of 1933 and 31 USC 3123 as “public policy” REMEDY for the discharge and return of equity interest on a private check’s portion of the public debt owed to Principals and Sureties bearing obligations of THE UNITED STATES.

3. . . . This is a statutory REMEDY for equity interest recovery due to the Principals and Sureties of the United States for discharge of lawful debts in commerce in conjunction with US obligations to that portion of the public debt it is intended to reduce.

4. . . . During the financial crisis of the great depression the SUBSTANCE of gold and silver, and real money was removed as the foundation of our financial system, in 1933.

5. . . . In its place the SUBSTANCE of the American citizenry — their real property, wealth, assets and productivity that belongs to them — was pledged by the government and placed at risk as the collateral for US debt, credit, and currency for commerce to function — this is well documented in the actions of Congress and the President at that time and in the Congressional debates that preceded the adoption of reorganizational measures:

6. . . . “The new money (paper promissory notes) is issued to the banks in return for Government obligations, bills of exchange, drafts, notes, trade acceptances, and banker’s acceptances. The new 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 in the Nation.” — Senate Document No. 43, 73rd Congress, 1st Session.

7. . . . This new money lawfully belongs to “all the people in the nation”,

8. . . . The National Debt is defined as “mortgages on the wealth and income of the people of a country.” — Encyclopedia Britannica, 1959.

9. . . . The people’s wealth is their income.

10. . . . The reorganization of the UNITED STATES is evidenced by: (1) the Emergency Banking Act of March 9, 1933, (2) House Joint Resolution 192 of June 5, 1933 and (3) the Series of Executive Orders that surrounded them.

11. . . . On December 23, 1913, Congress passed “An Act to provide for the establishment of Federal Reserve Banks, to furnish an elastic currency, to afford a means of rediscounting commercial paper, and to establish a more effective supervision of banking in the United States, and for other purposes.” — the “Federal Reserve Act”.

12. . . . One of the other purposes for enacting the Federal Reserve Act was to authorize “hypothecation” of obligations including “United States bonds or other securities which Federal Reserve Banks are authorized to hold” under 12 USC 14(a).
13. . . . The term “hypothecation” as stated in Section 14(a) of the Federal Reserve Act is defined as:

In regard to Banking: “hypothecation” is the offer of stocks, bonds, or other assets owned by a party other than the borrower as collateral for a loan, without transferring title. If the borrower (the US) turns the property over to the lender who holds it for safekeeping, the action is referred to as a pledge. If the borrower retains possession, but gives the lender the right to sell the property in event of default, it is a true hypothecation.

In regard to Securities: “hypothecation” is the pledging of negotiable securities to collateralize a broker’s margin loan. If the broker pledges the same securities to a bank as collateral for a broker’s loan, the process is referred to as re-hypothecation.
[Dictionary Of Banking Terms, Fitch, pg. 228 (1997)]

14. . . . As seen from these definitions, — in “hypothecation” there is equitable risk to the actual owner.

15. . . . “Federal Reserve Notes” are “obligations of the United States”. — Federal Reserve Act § 16 codified at 12 USC 411.

16. . . . So the “full faith and credit” of the United States is the SUBSTANCE of the American citizenry — the real property, wealth, assets and productivity that belongs to them — which is “hypothecated” from them by the United States and “re-hypothecated” for its U.S. obligations to the Federal Reserve Bank — for the issuance and backing of “borrowed Federal Reserve [promissory] Notes” as legal tender “for all taxes, customs, and other public dues”

17. . . . The commerce and credit of the nation continues today under bankruptcy reorganization as it has since 1933, backed by the assets and wealth of the American citizenry, that are at risk for the government’s obligations and currency.

18. . . . Under the 14th amendment and numerous Supreme Court precedents, as well as in equity, private property cannot be taken or pledged for public use without just compensation or due process of law. The United States cannot pledge or risk the property and wealth of its PRIVATE CITIZENS for any government purpose without legally providing them REMEDY to recover what is due them on their risk.

19. . . . Courts have long ruled that to have one’s property legally held as collateral or surety for a debt, even when one still owns it and still has it, is to DEPRIVE him of it since it is at risk and could be lost for the debt at any time.

20. . . . The United States Supreme Court, in United States v. Russell [13 Wall, 623, 627] said that, the Constitution provides that “private property shall not be taken for public use without just compensation.”

21. . . . “The right of subrogation — (the substitution of one party for another whose debt the party pays, entitling the paying party to rights, remedies, or securities that would otherwise belong to the debtor) — is not founded on contract. It is a creature of equity, enforced solely for the purpose of accomplishing the ends of substantial justice, and is independent of any contractual relations between the parties.” — Memphis & L. R. R. Co. v. Dow, 120 U.S. 287, 301-302 (1887).

22. . . . The rights of a Surety to recovery on his risk or loss when standing for the debts of another was reaffirmed again as late as 1962 in Pearlman v. Reliance Ins. Co., 371 U.S. 132 where the Court said:

“Sureties compelled to pay debts for their Principal have been deemed entitled to reimbursement, even without a contractual promise… And probably there are few doctrines better established…”

23. . . . “Surety”: “One who undertakes to pay or to do any other act in event that his Principal fails therein. Everyone who incurs a liability in person or in his estate for the benefit of another, without sharing in the consideration, stands in the position of a Surety.” — Black’s Law Dictionary , 5th edition.

24. . . . In the laws of equity, the United States CANNOT borrow or pledge the property and wealth of its private citizens — put at risk as collateral for its currency and credit — without legally providing them equitable REMEDY for recovery of what is due them.

25. . . . The United States government did not violate the law nor the Constitution in this way, in order to collateralize its financial reorganization, but did in fact provide this legal REMEDY so that it could legally hypothecate the private wealth and assets of those classes of persons by whom it is owned, at risk, who back the government’s obligations and currency by their implied consent through the government having provided such REMEDY for recovery of what is due them on their assets and wealth,, at risk.

26. . . . The provisions for this are found in the same act of “Public Policy” HJR-192 (a.k.a. public law 73-10) that suspended the gold standard for our currency, abrogated the right to demand payment in gold, and made Federal Reserve promissory notes for the first time legal tender “backed by the substance or credit of the nation”.

27. . . . All US currency since 1933 is only CREDIT against the real property, wealth and assets belonging to the private sovereign American people, taken and “pledged” by THE UNITED STATES to its secondary creditors as security for its obligations.

28. . . . Those backing the nation’s credit and currency could not recover what was due them by anything drawn on Federal Reserve notes without expanding their risk and obligation to their own selves. Any recovery payments backed by this currency (FRNs) would only increase the public debt its citizens were collateral for, which an equitable REMEDY was intended to reduce, and in equity would not satisfy anything, for there was no longer actual money of substance to pay anybody.
29. . . . In other words, there is no actual money in circulation by which debt owed from one party to another can actually be repaid.

30. . . . Although made legal tender for all debts public and private in the reorganization, Federal Reserve [promissory] Notes can only “discharge” a debt, whereas debt must be “payed” with value or substance (i.e. gold, silver, barter or a commodity). For this reason HJR-192 of 1933, the “public policy” of our current monetary system, repeatedly uses the technical term of “discharge” in conjunction with “payment” in laying out “public policy” for the new system; because a debt currency system cannot pay debt. (i.e. $ -10 dollars plus $ -10 dollars = $ 20 dollars).

31. . . . Ever since 1933, commerce in the corporate UNITED STATES and among sub-corporate subject entities [such as counties and towns] has had only “debt note instruments” by which debt can be discharged and transferred in different forms.

32. . . . The unpaid debt created and expanded by the plan now carries a “public liability” for collection, for when debt is discharged with debt instruments by our commerce (FRNs included), debt is being expanded instead of being cancelled, thus increasing the public debt — a situation potentially fatal to any economy.

33. . . . Congress and government officials, who orchestrated the public laws and regulations that made the financial reorganization, anticipated the long term effect of a debt based financial system, which many in government feared and which we face today in servicing the interest on trillions upon trillions of dollars in US Corporate public debt, and in this Act made provision not only for the recovery REMEDY to satisfy equity to its Sureties, but to at the same time alleviate if not solve this problem as well.

34. . . . Since the real property, wealth and assets of that class of persons is the SUBSTANCE backing all the obligations, currency and credit of THE UNITED STATES, such currencies could not be used to reduce its obligation, for equity interest recovery to its Principals and Sureties,

35. . . . HJR-192 further made the notes of national banks and national banking associations on a par with its other currency and legal tender obligations.

36. . . . United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. — 31 USC 5103.

37. . . . This official definition for “legal tender” was first established in HJR-192 of 1933 in the same act that made FRNs and notes of national banks and national banking associations legal tender.

38. . . . Public Policy HJR-192 of June 5, 1933 states that:

“As used in this resolution, the term obligation means an obligation (including every obligation of and to the United States, excepting currency) payable in money of the United States; and the terms coin or currency means coin or currency of the United States, including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations.”

“All coins and currencies of the United States (including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations) heretofore or hereafter coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties, and dues.”

39. . . . The terms “national bank” and “national banking association… shall be held to be synonymous and interchangeable. — 12 USC 221 Definitions.

40. . . . Prior to 1933 the forms of currency in use that were legal tender were many and varied:— United States Gold Certificates – United States Notes – Treasury Notes – Interest bearing notes – Gold Coins of United States – Standard silver dollars – Subsidiary silver coins – minor coins - Commemorative coins — but the list did NOT include Federal Reserve notes or notes of national banks or national banking associations, despite the fact that national bank notes were a common medium of exchange or currency, and had been almost since the founding of our banking system, and were backed by United States bonds or other securities on deposit for the bank with the US Treasury.

41. . . . Further, from the time of their inclusion in the definition, national bank notes have been phased out. Now all provisions in the United States Code pertaining to incorporated federally chartered national banking institutions issuing, redeeming, replacing and circulating notes have all been repealed:

42. . . . “Today commercial banks no longer issue currency...” — “Money and Banking”, 4th edition, by David H. Friedman, published by the American Bankers Association, page 78.

43. . . . Federally incorporated banking institutions subject to the restrictions and repealed provisions of Title 12 are not those banking institutions primarily referred to and maintained in the current definition of “legal tender”.

44. . . . The legal definitions of “bank”, “banking”, and “banker” used in the United States Code and Code of Federal Regulations are not those definitions commonly understood for these terms, and have made the statutory definition of “Bank” accordingly as follows:

“Bank” means “a ‘person’ engaged in the business of banking.” — UCC 4-105.1.

“The term ‘bank’ also includes any ‘person’ engaged in the business of banking.” —12 CFR 229.2.

“Banker” in a general sense is “a person that engages in the business of banking” and in a narrower sense is “a private person... who is engages in the business of banking without being incorporated.” — Blacks Law, 5th edition, page 133.

45. . . . Under some statutes, an “individual 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.

46. . . . “Banking” is partly and optionally defined as “The business of issuing notes for circulation, and negotiating bills.”

47. . . . Black’s Law Dictionary, 5th Edition, page 133, defines “Banking” as: “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.”

48. . . . Federal Statute does not specifically define “national bank” and “national banking association” to exclude a private banker or unincorporated banking institution.

49. . . . Federal Statute 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.

50. . . . The legal definitions relating to legal tender have been written by Congress to provide for 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 the US obligation to discharge that portion of the public debt which is provided for in the present financial reorganization still in effect and ongoing since 1933.

[See 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).]

51. . . . HJR-192 further declares that “every provision… which purports to give the obligee a right to require payment in gold or a particular kind of coin or currency… is declared to be against Public Policy; and no such provision shall be …made with respect to any obligation hereafter incurred” . . .

. . . making way for discharge and recovery on US Corporate public debt due the Principals and Sureties of THE UNITED STATES providing, as “public policy”, for the discharge of every obligation, “including every obligation of and to THE UNITED STATES”, “dollar for dollar”, allowing those backing the US financial reorganization to recover on it by discharging an obligation they owe to THE UNITED STATES or its sub-corporate entities, against that same amount of obligation of THE UNITED STATES owed to them; thus providing THE REMEDY for the discharge and orderly recovery of equity interest on US corporate public debt due the Sureties, Principals, and Holders of the obligations of THE UNITED STATES, discharging that portion of the public debt without expansion of credit, debt or obligation on THE UNITED STATES or these its Prime-creditors to whom it was intended to satisfy equitable remedy, gaining for each bearer of such notes, discharge of obligation equivalent in value ‘dollar for dollar’ to any and all “lawful money of the United States”.

52. . . . Those who constitute a nationwide association of private unincorporated persons engaged in the business of banking issuing notes against the obligations of the United States due them, whose private property is at risk to collateralize the government’s debt and currency, are by legal definitions, a “national banking association”.

53. . . . Such notes, issued against these obligations of the United States to that part of the public debt due its Principles and Sureties, are required by law to be accepted as “legal tender” of payment for all debts public and private, and are defined in law as “obligations of the United States” on the same par and category with Federal Reserve notes and other currency and legal tender obligations.

54 . . . Further, Title 18 Sect. 8 defines “obligation of the United States” to include “national bank currency”.

55. . . . According to “Money and Banking” by Friedman: There is no national bank currency... national bank currency was retired in 1935 in favor of paper Federal Reserve notes.

. . . Commercial banks no longer issue currency . . .

. . . yet national bank currency is still included in the official definition for Obligation of the United States, to honor those notes yet unredeemed and technically still in circulation today.

56. . . . Anything that has ever been established as legal tender or currency of the United States has always been redeemable for the present currency under the full faith and credit of the United States.

. . . If this were not true no one could have confidence to hold any currency of the United States as he would never know if at some point in the future it would cease to be redeemable at face value.

57. . . . The definition currency of the United States includes not only obligation of the United States “drawn by authorized officers of the United States” issued by the government; but also includes “all bonds, certificates of indebtedness [promissory notes], and national bank currency… drawn on the Secretary of the Treasury in his duty as keeper of the public debt:”

58. . . . “The Secretary of the Treasury shall pay interest due or accrued on the public debt.” — 31 USC 3123

59. . . . The term net public debt means the portion of the total public debt which is held by the public. — 31 USC 2130

60. . . . Public policy — under HJR-192 (public law 73-10) and 31 USC 5103 — gives the Prime-creditors and holders of US Corporate public debt the right to issue, as legal tender, notes “upon the full faith and credit of THE UNITED STATES for obligations of THE UNITED STATES and sub-corporate chartered entities to the discharge and recovery of the public debt ‘dollar for dollar’ to the Principals, Prime-Creditors, and Holders in Equity over THE UNITED STATES as Sureties for its obligations, currency and credit.”

61. . . . Such notes — issued by the Principals and Holders in Equity of US Corporate public debt as legal tender obligations of THE UNITED STATES for recovery of equity interest due — are the national bank currency backed as “obligations of THE UNITED STATES” primarily allowed for in these statutes.

62. . . . Therefore — in accordance with Public Policy established in HJR-192 — no plaintiff as obligee CAN require tender of any other particular kind of coin or currency in place of any promissory note already tendered by me in my strawman’s behalf.

63. . . . Congress has provided this REMEDY codified in the statutory law even though it is virtually unknown and therefore not readily understood.

64. . . . Under the REMEDY, TWO debts that are dischargeable by Federal Reserve debt note instruments, or checks drawn on the same are discharged against ONE public debt of the Corporate UNITED STATES and its sub-corporate entities owed to one of its Prime-creditors, without expanding the use of Federal Reserve debt note instruments as currency and credit, and without expanding the monetary supply and without expanding the public debt burden upon the Principals and Sureties the recovery REMEDY was intended to relieve.

65. . . . These are the facts of the law regarding tender and the discharge of public debt in a legal and lawful way.
“In the absence of a statutory definition, courts give terms their ordinary meaning.” Bass, Terri L. v. Stolper, Koritzinsky, 111 F.3d 1325, 7th Cir. 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).

TITLE 18 > PART I > CHAPTER 1 > Sec. 1 > Sec. 8 - Obligation or other security of the United States 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, 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.

TITLE 12 > CHAPTER 3 > SUBCHAPTER XII > Sec. 411 - Issuance to reserve banks; nature of obligation; redemption -
Federal reserve notes are 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 Federal Reserve agents, as hereinafter set forth, and for no other purpose are they 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.

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