MONEY

MONEY. In usual and ordinary acceptation it means gold, silver, or paper money used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81.
BLACK’S LAW DICTIONARY, 4th Edtiton, p. 1157.

DOLLAR, money. A silver coin of the United States of the value of one hundred cents, or tenth part of an eagle.
2. It weighs four hundred and twelve and a half grains. Of one thousand parts, nine hundred are of pure silver and one hundred of alloy. Act of January 18, 1837, ss. 8 & 9, 4 Sharsw. Cont. of Story's L. U. S. 2523, 4; Wright, R. 162.
Bouvier’s Law Dictionary, 1856[Emphasis added]

DOLLAR. The unit employed in the United States in calculating money values. It is coined both in gold and silver, and is of the value of one hundred cents. People v. Alba, 46 Cal.App.2d 8959, 117 P.2d 63. Money or currency issued by lawful authority and intended to pass and circulate as such. Neufield v. United States, 118 F.2d 375, 387, 73 App.D.C. 174. The dollar of nine-tenths fine consisting of the weight determined under the 31 U.S.C.A.§321, shall be the standard unit of value, and all forms of money issued or coined shall be maintained at a parity of value with this standard. 31 U.S.C.A. §314
Black’s Law Dictionary, 4th Edition.[Emphasis added]

STATE OF MINNESOTA
COUNTY OF SCOTT

IN JUSTICE COURT
TOWNSHIP OF CREDIT RIVER
MARTIN V. MAHONEY, JUSTICE

January 22, 1969

First National Bank of Montgomery, Plaintiff,

Jerome Daly, Defendant.

FINDINGS OF FACT CONCLUSIONS OF LAW

AND

JUDGMENT

Minnesota Statutes Annotated 532.38 required that the Appellant, First National Bank of Montgomery, deposit with the Clerk of the District Court within ten (10) days, two ($2.00) Dollars (lawful money of the United States) for payment to the Justice of the Peace before whom the cause was tried. This is one of the conditions for the allowance of an appeal. Two One ($1.00) Dollar Federal Reserve Notes were deposited with the Clerk of the District Court. One was issued by the Federal Reserve Bank of San Francisco, bearing Serial No. L12782836 and the other on deposit was issued by the Federal Reserve Bank of Minneapolis bearing serial number I80410697A.

This Court determined that said Notes on their face were contrary to Article 1, Section 10 of the Constitution of the United States and also, based upon the evidence deduced at the hearing on December 7, 1968, the Notes were without any lawful consideration and therefore were void; however, this Court indicated it would give the Plaintiff, First National Bank of Montgomery, a full and complete hearing with reference to this issue.

3.   As is evidenced from the book "The Federal Reserve System, Its Purposes and Functions:” put out by the Board of Governors of the Federal Reserve System, Washington, D. C., 1963, and from other evidence adduced herein, the said Federal Reserve Banks and National Banks create money and credit upon their books and exercise the ultimate prerogative of expanding and reducing the supply of money or credit in the United States.

The creation of this money or credit constitutes the creation of fiat money upon the books of these banks.

When the Federal Reserve Banks and National Banks acquire United States Bonds and Securities, State Bonds and Securities, State Subdivision Bonds and Securities, mortgages on private Real property and mortgages on private personal property, the said banks create the money and credit upon their books by bookkeeping entry.   The first time that the money comes into existence is when they create it on their bank books by bookkeeping entry.   The banks create it out of nothing. No substantial fund of gold or silver is back of it, or any fund at all.

The mechanics followed in the acquisition of United States Bonds are as follows: The Federal Reserve Bank places its name on a United States Bond and goes to its banking books and credits the United States Government for .an equal amount of the face value of the Bonds.

The money or credit first comes into existence when they create it on the books of the bank.

The Federal Reserve Bank of Minneapolis obtains Federal Reserve Notes in denominations of One ($1.00) Dollar, Five, Ten, Twenty, Fifty, One Hundred, Five Hundred, One Thousand, Ten Thousand, and One Hundred Thousand Dollars for the cost of the printing of each note, which is less than one cent.   The Federal Reserve Bank must deposit with the Treasurer of the United States a like amount of Bonds for the Notes it receives.   The Bonds are without lawful
consideration, as the Federal Reserve Bank created the money and credit upon the books by which they acquired the Bond.

The net effect of the entire transaction is that the Federal Reserve Bank obtains Federal Reserve Notes comparable to the ones they placed on file with the Clerk of the District Court, and a specimen of which is above, for the cost of printing only.   Title 31 U.S.C., Section 462 (See page 41) attempts to make Federal Reserve Notes a legal tender for all debts, public and private.

From 1913 down to date, the Federal Reserve Banks and the National Banks are privately owned. As of March 18, all gold backing is removed from the said Federal Reserve Notes.   No gold or silver backs up these notes.   The Federal Reserve Notes in question in'this case are unlawful and void upon the following grounds:

A. Said Notes are fiat money, not redeemable in gold or silver coin upon their face, not backed by gold or silver, and the notes are in want of some real or substantial fund being provided for their payment in redemption. There is no mode provided for enforcing the payment of the same. There is no mode providing for the enforcement of the payment of the Notes in anything of value.

B. The Notes are obviously not gold or silver coin.

C. The sole consideration paid for the One Dollar Federal Reserve Notes is in the neighborhood of nine-tenths of one cent, and therefore, there is no lawful consideration behind said Notes.

D. That said Federal Reserve Notes do not conform to Title 12, United States Code, Sections 411 and 418. Title 31 USC, Section 462, insofar as it attempts to make Federal Reserve Notes and circulating Notes of Federal Reserve Banks and National Banking Associations a legal tender for all debts, public and private, it is unconstitutional and void, being contrary to Article 1, Section 10, of the Constitution of the United States, which prohibits any State from making anything but gold or silver coin a tender, or impairing the obligation of contracts.

IN CONCLUSION, it is therefore the further judgment and determination of this Court:

1. That the original Judgment entered herein on December 9, 1968 is in all respects confirmed.

2. That the Federal Reserve Notes on deposit with the Clerk of the Court are not lawful money of the United States; are in violation of the. Constitution of the United States and are not valid for any purpose.

3. That M.S.A. 532.38 requiring $2.00 to be deposited with the Clerk of District Court within ten (10) days of the entry of Judgment was not complied with. That the conditions prerequisite to this Court allowing an appeal have not been complied with. That this Court's Notice of its Refusal to Allow Appeal dated January 6, 1969 is hereby made absolute.