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Empty Promissory



By this means (fractional reserve banking), government may secretly and unobserved, confiscate the wealth of the people, and not one in a million will detect the theft'

- John Maynard Keynes


Anybody still living under illusion that paper money has value, need look no further than the Credit River Decision of 1968 in which a lawyer by the name of Jerome Daly defended himself against his bank, the First National Bank of Montgomery, which had begun foreclosure proceedings on his property after Daly fell behind with his mortgage payments.

The Common Law Action was presided over by Justice of the Peace Martin V. Mahoney who listened intently to Daly’s contention that the bank had simply created credit on its books by bookkeeping entry and had not, therefore, advanced anything of value which was a failure of ‘lawful consideration’ (a kind of quid pro quo). This failure of lawful consideration meant the bank was not entitled to the property, rendering the mortgage agreement null-and-void.

The Common Law jury of Daly’s peers, no doubt themselves mortgagors, unsurprisingly found in favour of the defendant, who in addition to taking on the bank, had refused to pay income tax on the grounds that he had not received 'gold and silver coin' and therefore had no 'honest money' earnings that could be taxed.

Had Justice Martin V. Mahoney upheld the jury’s verdict, millions of Americans might have declared their mortgages null-and-void, eradicating billions in fraudulent debt overnight.

Which is exactly what Mahoney did. Citing the Declaration of Independence, the Northwest Ordinance of 1787 and the Constitution of the United States, Mahoney ruled that the Plaintiff’s act of creating credit was not authorised by the Constitution and Laws of the United States, which declares that ‘No State shall; make any thing but gold and silver coin a tender in Payment of Debts’. The bank had not only gone against the Constitution of the United States but had committed fraud. ‘Only God’, concluded Mahoney, ‘can create something of value out of nothing’.

Six months after the surprise victory for the common man, Mahoney was dead (drowned in suspicious circumstances) while Daly was hauled over the coals by the legal establishment who concluded that Daly ‘did not possess the qualities of character requisite to the practice of law’ and his license to practice should be revoked to ‘protect the public’. In layman’s terms, he wasn’t willing to bend over to protect the private Federal Reserve banking system.

When asked at his disciplinary hearing by Judge Donald C. Odden ‘If an order was issued out of the Supreme Court of the United States determining that the Federal Reserve System was a constitutionally appropriate system, would you follow that order’, Daly replied ‘Not if they are going to perpetrate a fraud on the people’.

Daley had exposed two well-hidden sleights of hand that have withstood the test of time. Namely, that money pegged to thin air is counterfeiting and that the law can be rightfully challenged when the imposition of that law is judged to be unfair or punitive by the people on whom the law is imposed. In other words, conscience trumps statute.

The scam is a straightforward one. In olden times, to save carrying gold about his person, a merchant wishing to purchase some goats would leave his gold at home and go to market clutching a handful of IOUs, or promissory notes. The goat-seller would accept the notes which promised to pay the bearer on demand the value of the goats in gold. So imagine arriving at the merchant's home, and finding not gold, but trillions or even quadrillions of even more promissory notes, reaching up high into the sky, promising to pay thousands of merchants multiple debts, many times over and over to infinity and beyond.

Welcome to the Bank of England, keeping inflation down at 2% since 1697, except for when it’s 10.4%. As for the Federal Reserve Act, National Monetary Commission chairman Nelson Aldrich (grandfather of Nelson Rockefeller) didn’t even try to hide the fact they wished to create an ‘elastic’ currency run by private bankers acting as federal agents.

Empty promissory notes are the basis on which our current monetary system operates. Not only do the private bankers ‘fleece the flock’ regularly with boom and bust, they also add interest to the fraud. Individuals found challenging this fiscal hegemony, like Lincoln (greenbacks) or Kennedy (silver certificates) meet with a sticky end, publicly, as a warning to others. Top-down doesn't work. Local currencies are the private bankers’ Trojan Horse. And the fightback has already begun.

Foil notes containing gold, known as Goldbacks, are now being used in four US states including Nevada, Utah, New Hampshire and Wyoming. States unhappy with the continued devaluation of the dollar to bail out other states, banks or the failing US economy, are breaking free from the private Federal Reserve system and going it alone. While North Dakota has had a state-owned, state-run bank since 1919, Texas is investing in gold bullion reserves, while Tennessee has lifted sales tax on precious metals and is planning on launching its own sovereign state bank. Describing himself as a Tennessean first and an American second Tennessee Senator Frank Niceley understands the need for a backup plan should the United States become less united. ‘Nobody wants to think about the United States breaking up and we hope it never does, but if it breaks up overnight, Tennessee becomes a nation’.

US debt has increased over four times the rate of tax revenues since 1981. In the UK, business turnover stands at 4.157TN or £147,041 per household compared to national debt at £2.7TN or £95,000 per household and the Bank of England has just increased its base rate to 4.25% which benefits banks and mortgage providers yet hasn’t trickled down to savers.

History has shown us that we don’t need the private bankers’ debt-laden, counterfeit elastic notes, which do not equate to lawful consideration. We know how to trade. We’ve been doing it for centuries using coins and promissory notes backed by precious metals, skills and produce. A credit-based monetary system cuts out interest and inflation and ensures no single entity such as the BIS, Bank of England and/or the Treasury, can dictate or create the devaluation of the notes in our pocket. It’s a rigged game, but only if we consent to it.

Jerome Daly died on 23rd March 1996. Though he never practiced law again, he did manage to hold onto his house – mortgage free. Daly continued to tell others about the Credit River Decision in the hope that greater numbers would one day see through the private banking scam. In one of his many circulars he declared: ‘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’.

Twenty-twenty six will mark the centenary of Daly’s birth. Hopefully Minnesota will launch their own goldback currency, The Daly, in honour of their brilliant, brave former resident.

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