The Fed

The Fed
William G Burmer

There was a time when one was expected to live within their means, saved, paid cash for their needs, and owed no one. They also mended socks and other clothing, made due and wore out. We each need to reevaluate our needs and set better priorities. Truth is we have become a debtor nation of people with little to no assets we can call our own. Essentially we have fallen prey to the first five planks of the communist manifesto. See chapter eight which contains the manifesto.


“No other banking system in the world was quite like it. It was the emancipation of the Treasury. New York bankers could not in the future go to Washington, as Mr. J.P. Morgan had done in 1895, and issue decrees to the President and people. Nor could there be holdup of the financial affairs of the country by business men who happened to have control of the New York bank reserves . . . the Secretary of the Treasury and the new Board would determine the movement and location of the surplus moneys in the country.” 4. On the surface it would appear that this act was legitimate in every respect. However, close investigation makes clear that “The Federal

Reserve Act is in direct violation of the Constitution, because no provision was ever made by the People for it. Congress by delegating this power to the Fed is in violation of the Supreme law of the land, the Constitution for the United States.” 5. The 10th Amendment says: “The powers not delegated to the United States by the Constitution nor prohibited by it to the States, are reserved to the States respectively, or to the people.”


At the very least a referendum should have occurred prior to incorporation. More importantly incorporation of the Federal Reserve System violated state Banking Rights. We along with our Senators were asleep at the switch!


“Congress cannot delegate or sign over its authority to any individual, corporation or foreign nation. 16th Corpus Juris Secundum, No 141.’ In the words of chief justice John Marshall February 1803: “The powers of the legislature are defined, and limited; and that those limits may not be mistaken, or forgotten, the constitution is written. To what purpose are powers limited, and to what purpose is the limitation committed to writing, if these limits may at any time, be passed by those intended to be restrained? The distinction, between a government with limited and unlimited powers, is abolished, if those limits do not confine the persons on whom they are imposed, and if acts prohibited and acts allowed, are of equal obligation. It is a proposition too plain to be contested, that the constitution controls any legislative act repugnant to it; or, that the legislature may alter the constitution by and ordinary act,” U.S. Supreme Court in Marbury v. Madison, 5 U.S. 368.’


“The general rule is that an unconstitutional statute, whether federal or state, though having the form and name of law, is in realty no law, but is wholly void, and ineffective for any purpose, since unconstitutionality dates from the time of its enactment, and not merely from the date of the decision so branding it. No one is bound to obey an unconstitutional law and no courts are bound to enforce it.” ‘16th American Jurisprudence, No 256.’ The supremacy of the Constitution as described in the Federalist papers #78 made it clear that “No legislative act . . . contrary to the

Constitution can be valid.” Its supremacy is to be preserved by the Supreme Court. (Ital. Added.)

“The Federal reserve Act, as passed by Congress December 23rd, 1913, has since become the (second) biggest fraud, (after the 16th Amendment,) in the history of this country. Its passage occurred because of self-serving politicians (admittedly, a redundant term) that were more interested in lining their pockets, than upholding their oath of office.’ (Ital. Added with parenthesis)


“All of our Founding Fathers had firsthand experience with bankers and paper money. They absolutely detested the notion that any man could issue notes based upon fractional reserves, thereby creating wealth for himself out of thin air. Most of the Founders were men of wealth, and they came upon that wealth by working hard for it, not by fraud, deceit, and plunder. Gold and silver are recognized around the world for their tangible wealth, because someone has to work very hard to get it out of the earth. How much effort does a banker expend in applying ink to paper to create a fractional reserve note? Not only did they abhor banks, they also disdained paper currency in general, because of their experience with the Continental Currency. In January 1779, The Continental Note was trading 8 to 1 against the Spanish milled Dollar, and by November of that year, it was trading 38 to 1. In January 1781 it was trading 100 to 1, and by

May of that year they ceased to pass as currency and quietly died in the hands of their bearers.


The Phrase “Worthless as a Continental” was widely heard in these times. It was for these reasons that the Founders forever mandated the use of an honest money system of gold and silver coin, and established it through the U.S. Constitution.’ “Prior to the Federal Reserve Act of 1913, the United States government coined, and issued our money debt free. The only lawful and Constitutional forms of money were (and still are) gold and silver coin. Acting upon the powers granted them by the Constitution, the Congress ratified the Coinage Act on April 2, 1792, which specified lawful money to be only gold or silver coin, and the denomination to be based upon a standard unit of weight---a Dollar (371.25 grains of fine silver), based upon the Spanish milled Dollar of silver, then widely in circulation in the sovereign States. The Coinage Act dramatically simplified the process of issuing a standard coin into circulation. At no cost, the individual could take his silver or gold dust, shavings, or bullion to the mint, and have it melted down and pressed into coin. Now it was guaranteed to be a standard weight and purity.’


“The Coinage Act specifies the weight and substance of the Dollar to be: ***Silver---412.5 grains, 90% pure, 10% alloy added for strength and durability. ***Gold---27.5 grains, 90% pure, 10% alloy added for strength and durability.” 6.


In the United States Code (USC Title 12 SS 152) “The terms “lawful money’ and ‘lawful money of the United States’ shall be construed to mean gold and silver coin of the United States.”

Some enlightening comments relative to the Federal Reserve come from some of our former leaders in the Congress: Representative Wright Patman from Texas, a Democrat of the 72nd to the 86th Congress (4 March to January 3, 1976), chairman of the House Banking and Currency Committee said: “In the United States we have, in effect, two governments . . . We have the duly

Constituted Government . . . Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which, constitutionally, are reserved to Congress. He further stated in the Congressional Record (May 5, 1975) . . . ‘the Federal Reserve System has never been subjected to a complete, independent audit, and it is the only important agency that refuses to consent to an audit by the Congress’s own agency, the General Accounting Office . . . GAO audits of the Federal Reserve will, moreover, fill the glaring gap that now exists in the information about the Fed’s activities and programs. As things now stand, the only information that we get on programs of the Fed is what they Fed itself wants us to have.” In truth much is available from the Federal Reserve about itself by just asking any bank. It is the Treasury Department that is most silent and secretive about its dealings with the Federal Reserve. Congressman Louis T. McFadden Republican, Banker while Chairman of the House Banking and Currency Committee, introduced a resolution indicting the Federal Reserve Board of Governors January 13, 1932. “The resolution preamble read: ‘Whereas I charge them,

jointly and severally, with the crime of having treasonably conspired and acted against the peace and security of the United States and conspired to destroy constitutional government in the United States.’ McFadden had good cause to level such charges, Section 19 of the Coinage Act States: “If any of the said officers or persons shall embezzle any of the METALS (Emphasis Added). Every such officer or person who shall commit any or either of the said offenses, shall be guilty of felony, and shall suffer death.” 7. “Only five Congressmen stood with Him and the resolution failed. The House Republican majority leader remarked, “Louis T. McFadden is now politically dead.” A whispering campaign that McFadden was insane swept Washington, and the press was more than happy to assist in the character assassination.


In the next Congressional elections, huge contributions found their way to his opponent, and as a direct result of being outspent and publicly vilified as a “fruitcake,” McFadden was overwhelmingly defeated. He was in fact more than just “politically dead.” McFadden “mysteriously died,” as the papers reported, in 1936, after three attempts on his life. Truth be known, he was poisoned.” In addition he once accused the Federal Reserve Board of “having caused the greatest depression we have ever known.” 8.


Our present Chairman of the Federal Reserve Bank Alan Greenspan (in 2000) was once an ardent foe of the very system he now serves. In his own words: “The abandonment of the gold standard made it possible for the welfare statists (meaning the government) to use the banking system as a means to an unlimited expansion of credit . . .” In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. (Remember inflation is a tax) There is no safe store of value . . . Deficit spending (using FRNs) is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.” Ital Added. (a) Mr. Greenspan enjoyed politics after becoming an advisor to Nixon and Ford he was hooked. He served on several boards of prestigious companies, and even owned his own consulting firm. He was eventually chosen for a directorship of J.P. Morgan and Company; for which “Fortune” magazine wrote as coming near to receiving “Knighthood.” He thereafter became very silent about his criticisms of the FED. In 1987 President Reagan appointed him as Chairman of the FED, a post he secretly coveted. Is it not interesting how positions of power, prestige and money can corrupt?


Chapter Six

1. Woodrow Wilson p307

2. Ibid. p307

3. Ibid. p 309

4. Woodrow Wilson and His Work. p 141

5. Economic Solutions. p 2

6. Ibid. pp. 8-9

7. Ibid. p 15

8. Who Was Who in American Politics? p 399

9. Constitutional Law. p 12



Next: The Communist Manifesto, just for fun.


“WE THE PEOPLE” and the American Constitution

By: William Grant Burmer ISBN 978-1-4363-2186-0

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