The Evolution of United States Currency

The definition of “note, n.”, in Black’s Law Dictionary (Rev. 4th Ed.) is: “A unilateral instrument containing an express and absolute promise of signer to pay a specified person or order, or bearer, a definite sum of money at a specified time.”

Black’s Law Dictionary, 6Ed states, “An instrument containing an express and absolute promise of signer (i.e. maker) to pay a specified person or order, or bearer, a definite sum of money at a specified time. A note not meeting these requirements may be assignable as not negotiable."

“A note is a specific and unconditional promise to pay.” UCC-304-1

“Intrinsically, a dollar bill is just a piece of paper.”Modern Money Mechanics, Federal Reserve Bank of Chicago.

An original Federal Reserve Note (series 1914) declares, “The United States of America will pay to the bearer on demand Five Dollars”.

This series of Federal Reserve Notes made no pretense of being dollars. This note is a promise to pay lawful money; therefore, a note cannot be money.

The “note” promises that the United States Government “WILL PAY THE BEARER ON DEMAND FIVE DOLLARS.” The reverse of the note states, “THIS NOTE IS RECIEVEABLE BY ALL NATIONAL AND MEMBER BANKS AND FEDERAL RESERVE BANKS AND FOR ALL TAXES, CUSTOMS AND OTHER PUBLIC DUES. IT IS REDEEMABLE IN GOLD ON DEMAND AT THE TREASURY DEPARTMENT OF THE UNITED STATES IN THE CITY OF WASHINGTON, DISTRICT OF COLUMBIA OR IN GOLD OR LAWFUL MONEY AT ANY FEDERAL RESERVE BANK.”

Please notice that United States Notes are not Federal Reserve Notes!

A United States Note was backed by gold on deposit at the U.S. Treasury.

The United States Note (1953 series C) promised to pay a specific sum of dollars to the bearer on demand. The 1953 Series C Note was a legal valid note according to the definition of “note.”The note declared, “THIS NOTE IS A LEGAL TENDER AT ITS FACE VALUE FOR ALL DEBTS PUBLIC AND PRIVATE.” The word "tender" means: “to offer”. Therefore, legal tender means that it is legal to offer something in payment of a debt. Consequently, one is not forced to accept a note as payment of the debt.

There was a significant change in the 1963 Series Note. It states, “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND PRIVATE.” Furthermore, there isn’t a promise to pay dollars to the bearer on demand although the term ‘FIVE DOLLARS’ appears on the note. Lawful money that backed the note was removed by 1963. Green pieces of paper created by the Bureau of Printing and Engraving, issued by the United States Department of the Treasury were intentionally designed to appear like the lawful notes they replaced. The Department of the Treasury proclaimed that the pieces of green paper were notes and dollars. The 1963 Series Notes were neither lawful notes nor dollars! A note to pay the bearer on demand dollars cannot be the dollars that it promises to pay the bearer.

The Federal Reserve Act of 1913 declared that the Fed notes would be backed by 40% in gold. Gold backing was reduced by 1928 as the Federal Reserve assumed more “authority” to loosen credit and float larger quantities of notes.

The Federal Reserve Note (Series of 1928 A) declares, “REDEEMABLE IN GOLD ON DEMAND AT THE UNITED STATES TREASURY OR AT ANY FEDERAL RESERVE BANK.” Although notes were no longer redeemable in gold; they were still redeemable in silver which was also lawful money.

Please notice that the “note” declared FEDERAL RESERVE NOTE”, “THE UNITED STATES OF AMERICA WILL PAY TO THE BEARER ON DEMAND FIVE DOLLARS.”As I stated earlier in this essay; a note promises to pay in dollars.

Assistant General Council, Russell L. Monk, of the Department of the Treasury declared, “Federal Reserve Notes are not dollars.”

The United States Treasury issued the SILVER CERTIFICATE backed with 100% silver reserve. The certificate declared, ‘SILVER CERTIFICATE’, “THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE TREASURY OF THE UNITED STATES OF AMERICA, FIVE DOLLARS IN SILVER PAYABLE TO THE BEARER ON DEMAND”. The certificate was a legitimate, dependable, sound money substitute backed by 100% money and was not inflatable.

The SILVER CERTIFICATE lost convertibility and was eliminated in 1968 when they were recalled by the United States Treasury. Consequently, since 1968, neither notes nor certificates of the United States Treasury were issued that would pay lawful money if one were to attempt to redeem them. Actually, there were no longer notes but imitation notes; counterfeit!

Webster’s New Collegiate Dictionary (1974Ed.):“Counterfeit: To imitate or copy esp. with the intent to deceive. To engage in counterfeiting something of value. Forgery. Something likely to be mistaken for something of higher value.”

Dr. Gary North declares, “If individuals do it, the State must intervene and punish violators, since fraud and theft are both involved. Yet, the State is also to be limited by law of honest weights and measures; it must not force citizens to accept a unit of money which is worth less in exchange than its face value. In short, legal tender laws are immoral, currency debased is immoral; printed unbacked “money” is immoral.”

Prior to the Federal Reserve Act of 1913, the United States government coined and issued debt free money. The only Constitutional lawful money is gold and silver.

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

“Coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidence of debt…”
Black’s Law Dictionary, 6 Ed.

Congress, acting appropriately upon delegated powers of the Constitution, ratified the Coinage Act on April 2, 1792. The Coinage Act of 1792 specified lawful money to be gold and silver coin. The denomination was based upon a standard unit of weight – a dollar (371.25 grains of fine silver), based upon the Spanish milled Dollar of silver in circulation within the United States. The Coinage Act simplified the process of issuing standard coins in circulation. An individual could take his silver or gold dust, shavings, or bullion to the mint. It would be melted and pressed into coin at no cost to the owner. It guaranteed the weight and substance of the dollar.

One dollar of silver is 412.5 grains, 90% pure, 10% alloy for durability and strength.

One dollar of gold is 27.5 grains, 90% pure, 10% alloy for durability and strength.

Fiat green paper that circulates impersonating ‘notes’ still bears the inscription “THIS NOTE IS LEGAL TENDER OF ALL DEBTS, PUBLIC AND PRIVATE.” One must ask the question “a tender of what?” Federal Reserve “Notes” and United States “Notes” are still called “notes”…but “notes” to pay what?

“Legal. The form of law; Posited by the courts as the inference or imputation of the law, as a matter of construction, rather than established by actual proof.”

“Tender. An offer of money. The act by which one produces and offers to a person holding a claim or demand against him the amount of money which he considers and admits to be due, in satisfaction of such claim or demand, without any stipulation or condition. As used in determining whether one party may place the other in breach of contract for failure to perform. The actual proffer of money, as distinguished from mere proposal or proposition to proffer it. Hence, mere written proposal to pay money, without offer of cash is not tender."

Blacks Law Dictionary 6 Ed.

Legitimate United States Notes and Federal Reserve Notes did not contain superfluous commentary. “IN GOD WE TRUST” appeared on illegitimate, non-redeemable, non notes. The Federal Reserve Note is worthless as a valid legitimate, promise to pay money, credit instrument.

The people of the United States of American, through their state legislatures, granted the United States government Article 1, section 8 of the United States Constitution. “The Congress shall have the power…to coin money, regulate the value thereof.” This power granted by the people was vested only in the United States Congress. Congress delegated this power in violation of the United States Constitution.

“Congress cannot delegate or sign over its authority to any individual, corporation or foreign nation.” 16th Corpus Juris Secundum, § 141.

“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 that 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 an 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 reality 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, § 256, 2nd Ed.

Gustavus Myers declares in his book History of the Great American Fortunes that the Rothschild family of bankers attempted to exert control over the United States through the central bank – Bank of the United States.

Nicholas Biddle, the president of the Bank of the United States, applied to Congress for a recharter bill in 1832, four years in advance of the expiration date of the old bill. On July 10, 1832. It was Biddle who sought vengeance on Jackson by calling in outstanding loans, thereby creating the Panic of 1837.


Excerpts from Andrew Jackson, Bank Veto Message, July 10, 1832

“It [the Bank of the United States] enjoys an exclusive privilege of banking under the authority of the General Government, a monopoly of its favor and support, and, as a necessary consequence, almost a monopoly of the foreign and domestic exchange. The powers, privileges, and favors bestowed upon it in the original charter, by increasing the value of the stock far above its par value, operated as a gratuity of many millions to the stockholders....”

“The act before me proposes another gratuity to the holders of the same stock, and in many cases to the same men…”

“More than eight millions of the stock of this bank are held by foreigners. By this act the American Republic proposes virtually to make them a present of some millions of dollars.”

“Every monopoly and all exclusive privileges are granted at the expense of the public, which ought to receive a fair equivalent. The many millions which this act proposes to bestow on the stockholders of the existing bank must come directly or indirectly out of the earnings of the American people....”

“It appears that more than a fourth part of the stock is held by foreigners and the residue is held by a few hundred of our own citizens, chiefly of the richest class.”

“Is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country? The president of the bank has told us that most of the State banks exist by its forbearance. Should its influence become concentered, as it may under the operation of such an act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not be cause to tremble for the purity of our elections in peace and for the independence of our country in war? Their power would be great whenever they might choose to exert it; but if this monopoly were regularly renewed every fifteen or twenty years on terms proposed by themselves, they might seldom in peace put forth their strength to influence elections or control the affairs of the nation. But if any private citizen or public functionary should interpose to curtail its powers or prevent a renewal of its privileges, it can not be doubted that he would be made to feel its influence.”

“It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes.”

“Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by act of Congress. By attempting to gratify their desires we have in the results of our legislation arrayed section against section, interest against interest, and man against man, in a fearful commotion which threatens to shake the foundations of our Union.”

In 1835, President Jackson withdrew government's money (gold and silver on deposit) from the “Bank of the United States.”

In 1836, Andy Jackson paid off the national debt by using real money instead of reserve type notes.

Abraham Lincoln, during the Civil War, refused the exorbitant interest rate to finance the Union proposed by August Belmont, an agent of the Rothschild family in the North. President Lincoln ordered the printing of $450 million “greenbacks” which were interest free legal tender notes. Meanwhile, the Rothschild family financed the Confederacy through the Erlangers, their agents in the South.

John F. Kennedy issued interest free legal tender “United States Notes” before his assassination. By Federal law a particular number of United States Notes had to be in circulation.

The American taxpayer could save billions of dollars merely by lowering the number of Federal Reserve Notes in circulation which is borrowed at interest. An equal number of United States Notes which are interest free could replace the FED notes. The United States Congress decided that Americans don’t need both currencies so they chose to withdraw interest free, legal tender, United States Notes from circulation.

Congressman Louis T. McFadden, Chairman of the House Banking and Currency Committee, addressed the House on June 10, 1932:

“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U. S. government institutions. They are not government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the United States for the benefit of themselves and their foreign customers. The Federal Reserve banks are the agents of foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.”

“The Federal Reserve Banks are privately owned, locally controlled corporations.” Lewis vs. U.S., 680 F.2d 1239, 1241 (1982)

The Congressional Record (June 10, 1932, p.12595) also clearly states the FED is not part of the United States Government but is a private corporation.

Governor of the Federal Reserve Board (1921) William P.G. Harding declared, “From a legal standpoint these banks are private corporations, organized under a special act of Congress, namely, the Federal Reserve Act. They are not in the strict sense of the word, ‘Government banks’.”

The Right-Honorable Reginald McKenna, Midland Bank of England, Secretary of the Exchequer declared, “Those who create and issue credit and money, direct the policies of government, and hold in the hollow of their hands the destiny of the people.”

Baron M.A. Rothschild boasted, “Give me control over a nation’s currency and I care not who makes its laws.”

President James A. Garfield proclaimed, “Whoever controls the money in any country is master of all its legislation and commerce.”

The fifth plank of the Karl Marx (1848) Communist Manifesto is: “Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.”

Thomas Jefferson declared, “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

Congressman, Chairman, Wright Patman of the House Banking and Currency Committee declared, “In the United States we have, in effect, two governments…We have duly constituted Government…Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution.”