JFK-Attempted to Disband FED
On June 4, 1963, a little known attempt was made to strip the Federal Reserve
Bank of its power to loan money to the government at interest. On that
day President John F. Kennedy signed Executive Order No. 11110 that
returned to the U.S. government the power to issue currency, without
going through the Federal Reserve. Mr. Kennedy's order gave the Treasury
the power "to issue silver certificates against any silver bullion,
silver, or standard silver dollars in the Treasury." This meant that for
every ounce of silver in the U.S. Treasury's vault, the government
could introduce new money into circulation. In all, Kennedy brought
nearly $4.3 billion in U.S. notes into circulation. The ramifications of
this bill are enormous.
With
the stroke of a pen, Mr. Kennedy was on his way to putting the Federal
Reserve Bank of New York out of business. If enough of these silver
certificates were to come into circulation they would have eliminated
the demand for Federal Reserve notes. This is because the silver
certificates are backed by silver and the Federal Reserve notes are not
backed by anything. Executive Order 11110 could have prevented the
national debt from reaching its current level, because it would have
given the government the ability to repay its debt without going to the
Federal Reserve and being charged interest in order to create the new
money. Executive Order 11110 gave the U.S. the ability to create its own
money backed by silver.
After
Mr. Kennedy was assassinated just five months later, no more silver
certificates were issued. The Final Call has learned that the Executive
Order was never repealed by any U.S. President through an Executive
Order and is still valid. Why then has no president utilized it?
Virtually all of the nearly $6 trillion in debt has been created since
1963, and if a U.S. president had utilized Executive Order 11110 the
debt would be nowhere near the current level. Perhaps the assassination
of JFK was a warning to future presidents who would think to eliminate
the U.S. debt by eliminating the Federal Reserve's control over the
creation of money. Mr. Kennedy challenged the government of money by
challenging the two most successful vehicles that have ever been used to
drive up debt - war and the creation of money by a privately-owned
central bank. His efforts to have all troops out of Vietnam by 1965 and
Executive Order 11110 would have severely cut into the profits and
control of the New York banking establishment. As America's debt reaches
unbearable levels and a conflict emerges in Bosnia that will further
increase America's debt, one is force to ask, will President Clinton
have the courage to consider utilizing Executive Order 11110 and, ifso,
is he willing to pay the ultimate price for doing so?
Executive Order 11110 AMENDMENT OF EXECUTIVE ORDER NO. 10289
AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY
By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:
Section 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended-
By adding at the end of paragraph 1 thereof the following subparagraph (j):
(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12,1933, as amended (31 U.S.C.821(b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denomination of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption
and --
Byrevoking subparagraphs (b) and (c) of paragraph 2 thereof.
Sec.
2. The amendments made by this Order shall not affect any act done, or
any right accruing or accrued or any suit or proceeding had or commenced
in any civil or criminal cause prior to the date of this Order but all
such liabilities shall continue and may be enforced as if said
amendments had not been made.
John F. Kennedy The White House, June 4, 1963.
Of course, the fact that both JFK and Lincoln met the the same end is a mere coincidence.
Abraham Lincoln's Monetary Policy, 1865 (Page 91 of Senate document 23.)
Money
is the creature of law and the creation of the original issue of money
should be maintained as the exclusive monopoly of national Government.
Money possesses no value to the State other than that given to it by circulation.
Capital
has its proper place and is entitled to every protection. The wages of
men should be recognised in the structure of and in the social order as
more important than the wages of money.
No
duty is more imperative for the Government than the duty it owes the
People to furnish them with a sound and uniform currency, and of
regulating the circulation of the medium of exchange so that labour will
be protected from a vicious currency, and commerce will be facilitated
by cheap and safe exchanges.
The
available supply of Gold and Silver being wholly inadequate to permit
the issuance of coins of intrinsic value or paper currency convertible
into coin in the volume required to serve the needs of the People, some
other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to
prevent undue fluctuation in the value of paper currency or any other
substitute for money of intrinsic value that may come into use.
The
monetary needs of increasing numbers of People advancing towards higher
standards of living can and should be met by the Government. Such needs
can be served by the issue of National Currency and Credit through the
operation of a National Banking system .The circulation of a medium of
exchange issued and backed by the Government can be properly regulated
and redundancy of issue avoided by withdrawing from circulation such
amounts as may be necessary by Taxation, Redeposit, and otherwise.
Government has the power to regulate the currency and creditof the
Nation.
Government
should stand behind its currency and credit and the Bank deposits of
the Nation. No individual should suffer a loss of money through
depreciation or inflated currency or Bank bankruptcy.
Government
possessing the power to create and issue currency and creditas money
and enjoying the right to withdraw both currency and credit from
circulation by Taxation and otherwise need not and should not borrow
capital at interest as a means of financing Governmental work and public
enterprise. The Government should create, issue, and circulate all the
currency and credit needed to satisfy the spending power of the
Government and the buying power of the consumers. The privilege of
creating and issueing money is not only the supreme prerogative of
Government, but it is the Governments greatest creative opportunity.
By
the adoption of these principles the long felt want for a uniform
medium will be satisfied. The taxpayers will be saved immense sums of
interest, discounts, and exchanges. The financing of all public
enterprise, the maintenance of stable Government and ordered progress,
and the conduct of the Treasury will become matters of practical
administration. The people can and will be furnished with a currency as
safe as their own Government. Money will cease to be master and become
the servant of humanity. Democracy will rise superior to the money
power.
Some
information on the Federal Reserve The Federal Reserve, a Private
Corporation One of the most common concerns among people who engage in
any effort to reduce their taxes is, "Will keeping my money hurt the
government's ability to pay it's bills?" As explained in the first
article in this series, the modern withholding tax does not, and wasn't
designed to, pay for government services. What it does do, is pay for
the privately-owned Federal Reserve System.
Black's
Law Dictionary defines the "Federal Reserve System" as, "Network of
twelve central banks to which most national banks belong and to which
state chartered banks may belong. Membership rules require investment of
stock and minimum reserves."
Privately-owned
banks own the stock of the Fed. This was explained in more detail in
the case of Lewis v. United States, Federal Reporter, 2nd Series, Vol.
680, Pages 1239, 1241 (1982), where the court said:
Each
Federal Reserve Bank is a separate corporation owned by commercial
banks in its region. The stock-holding commercial banks elect two thirds
of each Bank's nine member board of directors.
Similarly,
the Federal Reserve Banks, though heavily regulated, are locally
controlled by their member banks. Taking another look at Black's Law
Dictionary, we find that these privately owned banks actually issue
money:
Federal
Reserve Act. Law which created Federal Reserve banks which act as
agents in maintaining money reserves, issuing money in the form of bank
notes, lending money to banks, and supervising banks. Administered by
Federal Reserve Board (q.v.).
The
FED banks, which are privately owned, actually issue, that is, create,
the money we use. In 1964 the House Committee on Banking and Currency,
Subcommittee on Domestic Finance, at the second session of the 88th
Congress, put out a study entitled Money Facts which contains a good
description of what the FED is:
The
Federal Reserve is a total money-making machine.It can issue money or
checks. And it never has a problem of making its checks good because it
can obtain the $5 and $10 bills necessary to cover its check simply by
asking the Treasury Department's Bureau of Engraving to print them.
As
we all know, anyone who has a lot of money has a lot of power. Now
imagine a group of people who have the power to create money. Imagine
the power these people would have. This is what the Fed is.
No
man did more to expose the power of the Fed than Louis T. McFadden, who
was the Chairman of the House Banking Committee back in the 1930s.
Constantly pointing out that monetary issues shouldn't be partisan, he
criticized both the Herbert Hoover and Franklin Roosevelt
administrations. In describing the Fed, he remarked in the Congressional
Record, House pages 1295 and 1296 on June 10, 1932, that:
Mr.
Chairman,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. The Federal Reserve Board, a Government Board,
has cheated the Government of the United States and he people of the
United States out of enoughmoney to pay the national debt. The
depredations and the iniquities of the Federal Reserve Board and the
Federal reserve banks acting together have cost this country enough
money to pay the national debt several times over. This evil institution
has impoverished and ruined the people of the UnitedStates; has
bankrupted itself, and has practically bankrupted our Government. It has
done this through the maladministration of that law by which the
Federal Reserve Board, and through the corrupt practices of the moneyed
vultures who control it.
Some
people think the Federal reserve banks are United States Government
institutions. They are not Government institutions. They are private
credit monopolies which prey upon the people of the United States for
the benefit of themselves and their foreign customers; foreign and
domestic speculators and swindlers; and rich and predatory money
lenders. In that dark crew of financial pirates there are those who
would cut a man's throat to get a dollar out of his pocket; there are
those who send money into States to buy votes to control our
legislation; and there are those who maintain an international
propaganda for the purpose of deceiving us and of wheedling us into the
granting of new concessions which will permit them to cover up their
past misdeeds and set again in motion their gigantic train of crime.
Those 12 private credit monopolies were deceitfully and disloyally
foisted upon this country by bankers who camehere from Europe and who
repaid us for our hospitality by undermining our American institutions.
The
Fed basically works like this: The government granted its power to
create money to the Fed banks. They create money, then loan it back to
the government charging interest. The government levies income taxes to
pay the interest on the debt. On this point, it's interesting to note
that the Federal Reserve act and the sixteenth amendment, which gave
congress the power to collect income taxes, were both passed in 1913.
The incredible power of the Fed over the economy is universally
admitted. Some people, especially in the banking and academic
communities, even support it. On the other hand, there are those, both
in the past and in the present, that speak out against it. One of these
men was President John F. Kennedy. His efforts were detailed in Jim
Marrs' 1990 book, Crossfire:
Another
overlooked aspect of Kennedy's attempt to reform American society
involves money. Kennedy apparently reasoned that by returning to the
constitution, which states that only Congress shall coin and regulate
money, the soaring national debt could be reduced by not paying interest
to the bankers of the Federal Reserve System, who print paper money
then loan it to the government at interest. He moved in this area on
June 4, 1963, by signing Executive Order 11,110 which called for the
issuance of $4,292,893,815 in United States Notes through the U.S.
Treasury rather than the traditional Federal Reserve System. That same
day, Kennedy signed a bill changing the backing of one and two dollar
bills from silver to gold, adding strength to the weakened U.S.
currency.
Kennedy's
comptroller of the currency, James J. Saxon, had been at odds with the
powerful Federal Reserve Board for some time, encouraging broader
investment and lending powers for banks that were not part of the
Federal Reserve system. Saxon also had decided that non-Reserve banks
could underwrite state and local general obligation bonds, again
weakening the dominant Federal Reserve banks.
A
number of "Kennedy bills" were indeed issued - the author has a five
dollar bill in his possession with the heading "United States Note" -
but were quickly withdrawn after Kennedy's death. According to
information from the Library of the Comptroller of the Currency,
Executive Order 11,110 remains in effect today, although successive
administrations beginning with that of President Lyndon Johnson
apparently have simply ignored it and instead returned to the practice
of paying interest on Federal Reserve notes. Today we continue to use
Federal Reserve Notes, and the deficit is at an all-time high.
The
point being made is that the IRS taxes you pay aren't used for
government services. It won't hurt you, or the nation, to legally reduce
or eliminate your tax liability.
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