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The Federal Reserve lies about United States Notes (Lincoln Greenbacks)

October 30, 2009 by FauxCapitalist

The Federal Reserve first starts off by telling the truth about United States Notes:

“U.S. notes, the first national currency, began circulating during the civil war; they were authorized by the Legal Tender Act of 1862. The Department of the Treasury issued these notes directly. Issuance was subject to limitations; the Congress established a statutory limitation of $300 million on the amount of U.S. notes outstanding and in circulation. Although this amount was significant in Civil War days, it is a very small fraction of the total currency now in circulation in the United States.“

Then, they tell a big lie:

“U.S. notes serve no function that is not already served by Federal Reserve notes.”

Completely false! U.S. Notes were issued interest-free by the government. The purpose they served was to not bankrupt the American people in funding the Civil War, by not subjecting them to an unpayable, interest-accruing debt, from the moment of creation, as Federal Reserve notes do.

They lie, not only mislead, since they give so many accurate details, only to lie about the most important distinguishing function of U.S. Notes from Federal Reserve notes — their interest-free issuance. Sarah Emery, in her 1887 work, Seven Financial Conspiracies Which Have Enslaved the American People, states: “the enactments of July 17, 1861, and February 12, 1862, authorizing the issue of $60,000,000 treasury notes, not bearing interest and payable for all debts, public and private.“

The function they serve that isn’t already served by Federal Reserve notes is that not a single penny of interest was ever due on them, nor will ever be due, by the American people to the bankers or the government.

Furthermore, Federal Reserve member banks are unable to draw United States Notes whenever they please, unlike Federal Reserve notes. As the U.S. Treasury states,

“A commercial bank belonging to the Federal Reserve System can obtain Federal Reserve notes from the Federal Reserve Bank in its district whenever it wishes. It must pay for them in full, dollar for dollar, by drawing down its account with its district Federal Reserve Bank.“

While the Federal Reserve gives some very factual information on its website, such as the fact that they don’t ‘print’ any money, in this case, however, they told a lie about U.S. Notes — their interest-free competitor.

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Posted in Uncategorized | Tagged Federal Reserve, Federal Reserve notes, federalreserve.gov, interest-free money, Legal Tender Act of 1862, Lincoln Greenbacks, Sarah Emery, Seven Financial Conspiracies, U.S. Civil War, U.S. Notes, U.S. Treasury, United States, United States Notes, unpayable debt, ustreas.gov | 14 Comments

14 Responses

  1. on April 29, 2012 at 12:22 pm Gary North deliberately omits the fact that United States Notes are interest-free « Exposing Faux Capitalism

    [...] more on interest-free United States Notes, see my article, The Federal Reserve lies about United States Notes (Lincoln Greenbacks). Share this:FacebookDiggRedditTwitterStumbleUponLike this:LikeBe the first to like this [...]


  2. on February 10, 2011 at 12:50 pm Strange bedfellows: The Federal Reserve and The Daily Bell « Exposing Faux Capitalism

    [...] In it, I noticed an attempt to discredit interest-free United States Notes, which, as  I have previously documented, the privately owned Federal Reserve banking cartel lies about. [...]


  3. on May 26, 2010 at 7:54 pm AlvieC

    Hi,

    Hope this email finds you in good spirits.
    The email below is pretty explanatory. If not, understand NY FED Reserve admitted electronic negotiable instruments are worthless.
    Know what that means?

    Alvie

    Federal Reserve Bank
    New York
    “From: ucclaw-l-bounces@lists.washlaw.edu
    On Behalf Of Joseph.Sommer@ny.frb.org
    Sent: Friday, March 26, 2010 11:15 AM
    To:xxx-xxx-xxx
    Subject: Re: [Ucclaw-l] Electronic PromissoryNotes

    If I were confronted with an “electronic promissory note”, I would walk very slowly
    away and break into a run as soon as I can.
    They are a logical impossibility, along with electronic chattel paper and UCC 7 electronic
    warehouse receipts.
    The word “electronic” is miserably defined in all the statutes. But we all kinda sorta know
    what it means: something in a computer, rather than in some more fixed medium. Of course, a
    computer is made of matter and energy, just like a slip of paper or the side of a cow. So it
    must mean something special to be “in a computer.”
    And it does! Most records are stably associated with a particular agglomeration of matter which–if it is not realty–can be
    physically transferred from one person to another. This includes paper, cows, and DVDs. If the piece of paper or Old Bossy or
    the DVD is uniquely distinguishable from any other piece of paper or cow or DVD that bears the same data structure, we have the basis for a system of negotiability.
    However, computer records are not stably associated with any particular piece of matter.
    Instead, they are stably associated with a system, which contains many pieces of matter amongst which the record may be sitting, at any
    given moment. Or the record could be sitting in 12 places in the system; it makes no difference. You don’t need a unique piece of
    matter to uniquely identify an obligation—there is no unique matter (or energy) associated with the record. You just need an authoritative registry.
    Hence the logical impossibility of an electronic promissory note. “Promissory note” means unique piece of matter. “Electronic” means
    that there is no unique piece of matter, and we’re dealing with authoritative registries.
    UCC 8 gets this right. It has two property systems that rely on unique pieces of matter (registered and unregistered certificates), and
    two systems that rely on authoritative registries (transfer agents and securities intermediaries.)
    The cotton warehouse system gets this right, and talks in great detail about authoritative registries. UCC 7, 9 and UETA screwed up.
    They are bad law—literally incomprehensibly bad law.
    The courts will probably eventually define 7, 9, and UETA into registry systems of some kind.
    But until then, I would treat electronic negotiability systems as if they were rabid cows.”


  4. on May 4, 2010 at 12:44 pm A Financial Conflagration Of Immense Proportions « Truth11

    [...] parent organization, the Federal Reserve, lies about interest-free United States Notes, the currency that Congress issued to fund the Civil War, [...]


  5. on April 27, 2010 at 2:42 pm An illegal bank is the second-largest holder of U.S. treasury securities « Exposing Faux Capitalism

    [...] parent organization, the Federal Reserve, lies about interest-free United States Notes, the currency that Congress issued to fund the Civil War, [...]


  6. on March 24, 2010 at 10:34 pm Exposed the AIDS scam and faux capitalism as guest host on “Crash! Are You Ready?” « Exposing Faux Capitalism

    [...] faux capitalism – part 1 (Covering my previous articles: “The Federal Reserve lies about United States Notes (Lincoln Greenbacks)” and “The U.S. Postal Service: Undercutting the U.S. Dollar Since [...]


  7. on November 12, 2009 at 3:01 am Infowars Kansas City » Blog Archive » The Federal Reserve lies about United States Notes

    [...] Exposing Faux Capitalism October 30, 2009 [...]


  8. on November 2, 2009 at 10:42 am fauxcapitalist

    and http://www.dailypaul.com/node/112746


  9. on November 2, 2009 at 10:41 am fauxcapitalist

    More comments at http://www.ronpaulforums.com/showthread.php?t=216922


  10. on November 2, 2009 at 10:40 am fauxcapitalist

    Picked up by Infowars.com at http://www.infowars.com/the-federal-reserve-lies-about-united-states-notes/


  11. on October 31, 2009 at 5:40 pm KingofthePaupers

    From: johnturmel.com/poembank.htm

    Two notes used in America can clearly show the way,
    Both legal tender now down south. They can be spent today:
    “United States Note” issued by the nation’s Treasury,
    And “Federal Reserve Note” which is banker’s currency.
    Their fronts are very similar except the name they state,
    Their backs are very different, it means another plate.
    The Treasury provided notes for federal expense,
    And taxed them back to balance books with numbers that made sense.
    In 1913, other plates were given to the banks,
    Creation of the money. They gave politicians thanks.
    The Government had given banks permission to create,
    A batch of brand new money to be lent at interest rate.
    The Government then borrowed from them and at their request,
    The Congress passed the Income Tax to pay them interest.
    One Congressman objected, Louis T. McFadden, loud,
    “The greatest crime in history,” he said with head unbowed.
    Ten dollars out, eleven back, it often takes a while,
    But after years, the end result’s a melancholy style.
    The money from the Treasury, its use did almost cease,
    To pay the interest to banks, the taxes did increase.
    And when we ask “The Treasury, why is it never used?”
    In answer, we get silence and an attitude bemused.
    So to this day the bulk of the American supply,
    Is borrowed from the banks at rates that make debts multiply.
    All Governments do service debt by taxing you and me,
    Instead of letting Treasury create it interest free.
    I see no reason for a tax to pay them interest,
    When use of plates by Treasury would lower taxes best.
    The money from the Treasury was used down south before.
    The “Greenbacks” used by Lincoln paid to win the Civil War.
    The “Continentals” did their job until King George did state:
    “There’ll be no use of your own plates, for gold you’ll have to wait.”
    Though we’ve been told that their revolt was over tax for tea,
    Ben Franklin said “The war’s because they took our currency.”

    Jct: Yes, banking by the Treasury interest-free is the way to go. See my videos on banking systems engineering at http://youtube.com/kingofthepaupers


  12. on October 31, 2009 at 5:04 pm William Morgan-American Hero

    Look at the chevron in the Treasury Seal on old U.S. notes or Silver Certificates- it’s 90 degrees square. Look at it on the ‘Federal’ Reserve notes in your wallet- it’s obtuse, over 90 degrees –Because it’s not fair and SQUARE, it’s not square with the Constitution and the federal law that says ‘lawful money shall be construed to mean that which is coined of gold or silver by act of Congress’ (Title 12 sec. 152) The F.R.A.U.D.s in your wallet (‘federal’ reserve accounting unit devices) are not lawful money, do not square with the Supreme Law of the land—and they admit it! They admit it occulticly, symbolically right there on the seal by the chevron change.


  13. on October 31, 2009 at 9:17 am The Federal Reserve lies about United States Notes « Truth11

    [...] Exposing Faux Capitalism [...]


  14. on October 30, 2009 at 5:19 pm brian

    Ok



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