COUNTY OF SCOTT *, TOWNSHIP OF CREDID Riven MARTIN V, MAHONEY, JUSTICE First National Bank of Montgomery, : Plaintiff; vs. PINDINGS OF FACT i 2 CONCLUSIONS OF. LAW Jerome Daly, ‘ : AND : : JUDGMENT Defendant. ‘The above-entitled action came on before the Court on January 22; 1969 at 7:00 P. M., pursuant to Motion and ni Notice of Motion and Order to Show Cause, a true and correct copy of which ‘is attached hereto » pagail3t "A". An action for the recovery of ‘the possession of’ Real Property was brought before this Court for’ trial on December 7, 1968 at ;00 A. M., by Jury. A true and correct copy of the gudgment and Decree entered by this Court on December 9, 1968 is attached hereto ,apages!Lat thrt.17. On January 6, 1969 this Court filed a Notice of Re- fusal'to Allow Appeal'with the Clerk of the District Court, Hugo L. Hentges, for the County of Scott and State of Minnesota, which is attached hereto pagestil0; 197%. 20. Minnesota Statutes Annotated 532.38 required that the Appellanit, 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 pay= ment to the Justice of the Peace before whom the cause was tried. This is one of the conditions for the allowance of an appeal. 7 ' ‘Two One ($1.00) Dollar Federal Reserve Notes were { deposited with the Clerk of the District Court. One was issued py the Federal Reserve Bank of San Francisco, bearing Serial No, 112782836 and the other on deposit was issued, by the Federal Reserve Bank of Minneapolis bearing Serial No.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 upen the evidence deduced at the hearing on Decenber 7, 1968,, the Notes were without any laweil consideration and therefore were void; however, this Court in-! dicated it would give the Plaintiff, First National Bank of Montgomery; full and complete hearing with reference to this issue. i No hearing was requested and this Court was ordered to show cause before the District Court as to why the Appeal should not be allowed. 7 ; Therefore, ‘this Court, ordered a hearing before, this of making Findings: Court on January 22,1969 for the purpt of Fact and Conclusions of Law. Pursuant thereto, the above-entitied action cane on for hearing before this Court. on January 22, 1969 at 7:00-P..whe First National Bank of Montgomery made no appearance : although service of the Motion and Order was served, upon Ralph Hendrickson, its Cashier, on January 20,1969. No continuance was requested by Plaintiff or its Attorney. The Defendant appeared by and on behalf of himself. After waiting for one hour for the Bank or its representative to appear the Court recieved the testimony of Defendant. Now, Therefore, based upon all of the files, recordé,..i and proceédings herein and the evidence offered this Court makes the following Findings of Fact, Conclusions of Law, Judgment and Determination with reference to the allowance of an appead: ; PINDINGS OF FACT, CONCLUSIONS OF LAW, JUDGMENT AND DETERMINATION + 4. that the Federal Reserve Banking Corporation is a United States Corpotation with twelve (12) banks throughout, the united States, including New York, Minneapolis and San Francisco. qhat the First National Bank of Montgonery is also a United States Corporation, incorporated and existing under the laws of the United States and is a member of the Federal Reserve System, and mote specifically, of the Federal Reserve Bank of Minneapolis. fh 'of the United States and is a member of the Federal Reserve system, and mote specifically, of the Federal Reserve Rank of Minneapolis. : : 2. That because of the intetlocking activities, jtrangactions | art practices, the Federal Reserve Banks and the National Banks aré for all practical purposes, in the law, one and the sane bank. afta. as is evidenced from the boo "The Federal Reserve System; Its Purposes and Functions: put out by the Board of Governors i of the Federal Reserve System, Washington, D.,C., -1963, and from other evidence adduced herein, the ‘said Federal Réserve 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. To il- 1 lustrate the admission of their activity, pages 74 through j 78 are attached hereto as Payesi@lip22 & 23. i he 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 theix books by bookkeeping entry. The first time that the money comes into existance is when they create it on their bank books by bookkeeping entry. ‘The banks creaté 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 existance 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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 print- (See page 41) ing only. Title 31 U.S.C., Section 462/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,“yu 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 dis 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Reserve Notes and circulating Notes of Federal Reserve Banks and National Baning 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 any~ thing but gold or silver coin a tender, or impairing the ob=" Ligation 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. a 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. 4. That following memorandum is attached and made a part of this decision. MEMORANDUM Article 1, Section 10 of the United States Constitution provides that no State shall make anything but gold and silver coin a legal tender in payment of debts. The act of the Clerk of the District Court is the act of the State. The Clerk of the District Court is the agent of the Judicial Branch of the Government of the State of Minne~ sota. See Birséce et al vs. The Bank of the Commonwealth of Kentucky 11 Peters Reports at Page 319, "A State can act only through its agents; and it would be absurd to say that any act was not done by a State which was done by its authorized agents. The bank attempted to get the Clerk of DistrictCourt to perform an act contrary to the Constitution of the united States. The states have no power to make bank notes a legal tender. See 36 Aner Jur on Money, Section 13, attached hereto, pages 24 and 25 See also 36 Amer. Jur. on Money, Section 9, attached hereto. Bank Notes are a good tender as money unless specifical~ ly objected to. Their consent and usage is based upon their convertability of such notes to coin at the pleasure of the holder upon presentation to the bank for redemption. When the inability of a bank to redeem its notes is openly avowed they instantly lose their character as money and their circulation as currency ceases. ‘There is also'no lawful consideration for these notes to circulate as money. See pages 74 through 78 of “The Federal System; Its Purposes and Functions", a copy of which is attachéd ages 21 thru 23 hereto. /The banks actually obtained these notes for the cost 65of the printing. There is no lawful consideration for said Notes. A lawful consideration must bxist for a Note. See 17 Amer. dur. on Contracts, section 05 /4dnd also sections 215, 216 and 217 of 11 Amer. Jur. 2nd on Bills and Notes ,’7 */"7* As a matter of fact, the "Notes" are not Notes at all, as they contain no promise to pay. i the activity of the Federal Reserve Banks of Minneapolis, San Francisco and the First National Bank of Montgomery is contrary to public policy and the Constitution of the United States and constitutes an unlawful creation of money and credit and the obtaining of money and credit for no valuable consideration, The activity of said banks in creat- ing money and credit is not warranted by the Constitution of the United States. The Federal Reserve and National Banks exercise an exclusive monopoly and privilege of creating credit and “gesuing their Notes at the expense of the public, which does _ not receive a fair equivalent. This schene is for the benefit of an idle monopoly and is used to rob, blackmail and oppress the the producers of wealth. ‘he Federal Reserve Act and the National Bank Act ie in its operation and effect contrary to the whole letter and spirit of the Constitution of the United States; confers an unlawful and unnecessary power on private parties; holds all of our fellow citizens in dependance; is subversive to the rights and Liberties of the people. It has defied the lawfully constituted Government of the United States. The two banking page ston acts and Sec. 462 of Title 31, U.8.c//ate therefore uncon- stitutional and void.the law leaves wrongéoers where it finds them. See 1 amex. Jur. 2nd on Actions, Sections 50, 51 and 52 which are attached hereto and made a part hereof, Hay’ 35 rand ge this Court therefore is not allowing the appeal. samary J J, 1969 JUSTICE OF THE PRACE CREDIT RIVER TONSHIP SCOPT COUNTY, MINNESOTA FURTHER MEMORANDUM qhe jurisdiction of this Court is confered by Article 6, Secs 1 of the Minnesota Constitution; "Sec. 1. the judicial power of the state is hereby vested in a Supreme court, a C pistrict Court, a probate court, and such other Courts, minor judicial officers and comissiqners with jurisdiction inferior to the District Court as the legislature may establish.” the pertinant’ parts of the United States Constitution are as follows; along with the beclaration of Independence: DECLARATION OF INDEPENDENCE _Ws“THEREEORE, the, Resceente | WE THEREEONE, {M, Racca | seenow 8 The Congraves ern Pre ee eee judicial officers and commissioners with jurisdiction inferior to the District Court as the legislatur are as followsy along wi DECLARATION OF INDEPENDENCE onurineiy Mere y Comman, Dy 4, 278, ny Merits When, oe oun of human evn tn Becomes necessary for one people to este pci! band wich, have Connected them With another, and t0 as Some among the powers ofthe earth, the Stparate a equal tation to which the ve of Nature and of Nature's God en Kites them, a decent respect fo the opine fone, of mankind. requires that tk ‘Should declare the causes which Impet ‘hem to the separation. ‘We hold these truths to be self-evident, that all'men ae ereated equal, thet they fre endowed uy thet Crestor with, cer pines, Efmmments ae inetituted among Men, de Fiving thelr fost. powers feom the con Eent et the governed. That whenever any Form of Covernment, becomes, destruc- tive ot these ends It ts the Right of the Beople to ater gt fo both Hand fo Thoiltcte new: Government, Taying 108. {eundation’ on such principles and oF- fantuing Its powers in #ueh form, a8 te Ekem shall vem mont likely (0, effect thele Safely and Happiness.” Prudence, WMdeed wit dictate that. Governments {ong established anould not be changed fevign and traraent cee, tc, ‘Grainly all experience hath shown, that Strand ‘are more aleposed. to raler, ‘hile evi are nuerable, than to Fight Themsclves by. abolishing” eve forms. to Wich they ate accustomed. But when Tibeg tein of abuses and usurpations, Sursuing invariably. the ame "Object Evinces a deslan to reduce them under ‘WETHEREFORE, the Representa tives of the United Slates of Americs, in General Congress, Ansembled, appealing fo the Sopreme dedge of the world for thetreclitade of our intentions, do, In the ame, and by euthority of the goed Pec- ple of there Colonies, solemnly publish a doelare, That these United Colonies, fre and. of Right ougnt to be free and Independent States: that tey are Abe solved from all Allegiance te the Brit~ Tir Crown, and that. all politcal con- hnecton between them end’ the State of Great Britain le and ought to be totally Glesolved; and that as Freg and Independ- at Banton, they have full: Power wo fevy. War, conclude Peace, contract Ale Tian, entabilah Commmeres, and to do ef) ther Acts and “Things which Independ- ‘nt States may of Fight 0. And for the Support of this Declaration, with «frm {ellance “on the” protection of Diving Brovidencey we mutually pledge to each ‘thee our Lives, out Fortunes, and our ‘ered Honor. = JOHN HANCOCK. ‘qui CONSTITUTION OF THE ‘UNITED STATES We the People of nis Unrr=0 Srames, tn Onn 70 Fort a mone Penrucr UMN, ESrancisn Horne, Insume consti TRAs- SURLITy, Proved fon Ie. COMMON De- Fae, fromore ‘ute ewenat, WeurAnt, no sécue ne Bursaiuas or Liveery 70 ‘bxsauyen ano oUn Postetry, 0 onDAin Gb beraetisn "rine CONSTITUHION. FOR ‘fie Unt Stares or Anenion. Feil ‘SecriON 1. All Jglsative Powers here in granted Shall be vested in e Congress ot fhe United States, whlch shall const St senate and House of Represent ves. + 8. e may establich.” ghe pertinant’ parts of the United states Constitution ith the Declaration of Independence: secpat 8 Toe Congres, at PRET hy Ah SRE | Ponstel Bape aad Be eta Te Bolle Beit he farcet eects SLSTBRS ione tateesatr | ae te cel oe ose ee ‘To com Money, regulate the Value Koes aad thereot, ge the Shindatd of Weights and Meesures 1s man al) Law which shal Be noe ‘sre Tans pogo for earbing nto Ese ceution the foregoing Powers, and al Siner Powers reset fy tia Connon sient inicio ae Ge sat eae ae le on eee fol Bevel Bae Suto se a aie Grd Bie ee fda ate Bi eee Oates oa Harter ae Se dha ‘secrion 2 The julclal Power sell”Article VI. F Article 1. : Artiste XIV, a An Deve cauceted ana garerentt | congas sal alen w ropectng enh Deb ceuasted and mapneeine | | Congres shall make no ew eecin€ seenow 4, All persons born or naturale seers Maas faiDagnien the | Leeman: SLEEP Gol bed in the Unie States and beet GRACE er ie Gontfaon | ete ee greeny Meret oF MASA radio thera" lene of ee the Contederaion. 2s tc SET Sle Genet the Uned Satna a we tate where: veer Congtvaionsand the Laws of the - 2eGvigtbatmistnd w petfion the Gov. $f (HEY rende. No Slate shal make or yas Siti witht Aden eevee fer rarest of asevancen = SMGFSE AMY Saw which shall args the eae Brvleges or immunities of isms. of sie Vi he’ United: States: nor shall any State a eprive any person of Ita, Ibert, oF In Suits at common lav, where the property, without tue. proven of ay nite Incontroversy anall exoved twenty Ror" deny to any Person within is Joris: \Sblseeuhe'rignt of tial by jury shall be “ Gieton the equal protection of the laws [recerveds and no fact tried by & Jury, ion ingyeofi and ail ‘Treater ‘de oF whlen halt be Made, under the Iuthocty of the United State, sha be {he supreme Law of the Land; and the SMigee la everySlate shell be bound here, any Thing n the Constitution oF awe of any’ State to the Contrary not wwitnstending. hall be, otherwite re-examined In any ‘The Senators and Representatives be- | Court of the United States, than aecord+ fore mentioned, and the Members of the | Ing to the rules of the common lav. ‘Steel late Legon and ei exec live end fudiclal OMcers, a ‘of the “Article IX. Unied'Sites and of the aver! Slates the enumeration of the Congtiuton Malle bound by Oath ot Amrmation, to | of certain rights shall not be temastned Root Satan: but no rege) OS Seng SeSisSeee atresia Bt Beata ever be requires art the'pebe Quatincation to, any. Once oF publi ‘Trust under tne United Staceneee eee eee ae eee eee ere Seed United States and of the aeverat Slates, | ‘The gnumeration of the Constitution, ated Seguin ae hes th 8 fiom tac res tgs | (2S ie a po be ence EP hae Berge sets, (ley tr Motes athe eae hy Qualification to any. Ofce or “— ‘Trust under the United States, fee Nothing in the Constitution ox Laws of the United States limits the jurisdiction of this Court. The Constitution of Minnesota Does Not limit the jurisdiction of this Court. It therefore has complete jurisdiction to render justice in this Cause. See 16 Am Jur 2d "Constitutional Law Sections 219 thru fogen 2e- 28 221. apenas . When a Court is created the judicial power and not by the act creating the is confered by the Constitutio: court. See the Bill of Rights of the Minnesota, Constitution. Furthermore, the First National Bank of Montgomery invoked the jurisdiction of this Court and never has questioned its jurisdiction to decide all issues presented to this Court. As to the effect of an unconstitutional law sé 16 Am Jur 2d Constitutional Law Sections 177 thru 179 attached hereto, Augen 33-33" ‘The meaning of the Constitutional provision "No State Shall make any thing but Gold and Silver Coin a tender in payment of debts" is direct, clear, unambigious and without any qualification. this Court is without authority to interpolate any exception. My duty is simply to execute it, as written, and to pronpunce the legal result. From an’ examination of the case of Edwards v. Kearzey, 96 U.S. 595, the Federal Reserve Notes (Fiat Money), : which are attempted to be made a legal tender, are exactly what the authors of the Constitution of the United States intendedto prohibit. No State can make these Notes a legal tender. Congress is incompetent to authorize a State to make the Notes a legal tender. For the effect of binding Constitutional provisions see Cooke V. Iverson 108 M. 388 and State v. Sutton 63 M. 147 "Yee" fugn BZ. This fravdulent Federal Reserve System and National Banking System has impaired the obligation of Contract, promoted disrespect for the Constitution and Law and has shaken society to its foundations. the Court is at a loss, because of the non-appearance of Plaintiff to determine, upon what legal theory, Plaintiff could possibly claim that the Notes in question are a legal tender. If they have any validity it must come from the Constitution of the united States and laws passed pursuant thereto. Inquiry was made of Mr. Daly as to what laws these Notes: could be ‘possibly be based upon to sustain their validity. To aid the Court he presented the following: See Pagun9¢ & ve _ containing Section 411,412, 417,428,420 or USC Title 12 and Title 31USC Sec. 462. on the one hand section 411.holdg: and states that the Notes are to be used for the purpose of making advances to Federal Reserve Banks thru Fedéral Reserve Agents and for no other purposes. Then Title 31 Section 462 states "All -~-FederalFederal Reserve Banks thru Fedéral Reserve Agents and for no other purposes. Then Title 31 Section 462 states "All -~-Federal Reserve Notes and circulating Notes of Federal Reserve Banks and National Banking Associations heretofore or hereafter issued, shall be legal tender for all debts public and private." The Constitution states "No State shall make any thing but Gold and silver Coin a legal tender in payment of debts." The above refered to enactments of Congress states that the Notes are a legal tender. There is a direct conflict between the Constitution and the Acts of Congress. If the Constitution is not controling then Congress is above and has superior authority from the Constitution and the People who ordained ‘and established a yt yr Title 31 USC Section 432/18 in direct conflict with the Constitution in so far, at least, that it attemptg to make Raden Reserve Notes a hegal tender, the Constitution is the lo ro, a oesupreme Law of the Land. Sec. 432 is not a law which is made in pursuance of the U.S.Constitution, It is unconstitutional and voia, and, I so hold. Therefore, the two FederahlReserve Notes are null and void for any lawful purpose so far as this case is concerned and are not a valid deposit of $2.00 with the Clerk of the District Court for the purpose of effecting an Appeal from this Court to the District Court. I hold that this case has not been lawfully removed from this Court and Jurisdiction thereof is still vested in this Court. However, there is a second ground of possible invalidity of these Federal Reserve Notes and that is that the Notes are invalid because on no theory are they based upon a valid, adequate or lawful consideration. At the hearing scheduled for January 22,1969 at 7PM Mr. Morgan, nor any one else from or representing the Bank, attended to aid this Court in making a correct determination. Mr. Morgan appeared at the trial on December 7,1968 and appeared as a witness to be candid, open, direct, experienced and truthful. He testified to 20 years of experierice with the Bank of America in Los Angeles, the Marquette National Bank ofand truthful, He testified to 20 years of experience With tne Bank of America in Los Angeles, the Marquette National Bank of Minneapolis and the Plaintiff in this case. He seemed to be Familiar with the operations of the Federal Reserve System. lle freely admitted that his Bank created all of the money or credit upon its books with which it acquired the Note of May 48,1964, The credit first came into existence when the Bank Created it upon its Books, Further he freely admitted that no united States Law gave the Bank the authority to do this. There was obviously no lawful consideration for the Note. The Bank parted with absolutely:nothing except a little ink, In this case the evidence was on January 22,1969 that the Federal Reserve Banks obtain the Notes for the cost of the printing only. This seems to be confirmed by Title 12 USC Section 420. The cost is about ‘\oths of a cent per Note, regardless of the amount of the Note. The Federal Reserve Banks create all of the Money and Credit upon their books by bookeeping entry by which they acquire anUnited States and State Securities. The collateral required to obtain the Notes is, by section 412, USC, Title 12, is a deposit of a like amount of Bonds; Bonds which the Banks acquired by creating money and credit by bookeeping entry. No rights can be acquired by fraud. The Federal Reserve Notes are acquired thru the use of unconsitutional statutes and fraud, ‘The Common Law requires a lawful consideration for any Contract or Note. These Notes are void for failure of a lawful consideration at Common Law, entirely apart from any Constitutional Considerations. Upon this ground the Notes are ineffectual for any purpose. This seems to be the principle objection to paper Fiat Money and the cause of its depreciation and failure down thru the ages. If allowed to continue Federal Reserve Notes will meet the same fate. It would have been helpful had Mr. Morgan appeared at the last hearing, It is this Court's under~ standing that as of March 18,1968 all Gold and Silver backing was taken from the Notes in question. This Court determines that the Appeal requi¢ement of the Statutes of the State of Minnesota have not been complied with he Appeal therefore is not allowed and my Docket so shows. BY THE COURT January 23,1969 CREDIT RIVER TOWNSHIP SCOTT COUNTY , MINNESOTA! \ | i | MOTION AND NOTICE OF MOTION AND vs. ORDER TO SHOW CAUSE Jerome Daly, Defendant. to: Plaintiff above named and to its Attorney Theodore R. Melby : Sirs: You will please take notice that the Defendant,,,Jerome Daly, will move the above named Court at the Credit River ‘nownship Village jail, scott County,Minnesota before Justice Martin V. Mahoney at 7 Pel. on Wednesday January 22,1969 to make findings of fact, conclusions of law and order and Judgment refusing te ‘allow Appeal on the grounds that the two One Dollar Federal Reserve Notes are unlawful and void and are not a deposit of Two Dollars in lawful money of the Ynited States to perfect the appealy am! @ ewe CF Cra tll qefessel Ee llive cgpgunl 7 January 20,1969 eronejba ttorney for himself / street ORDER on application of Defendant Jerome Daly, it appearing that. an exigency exists because this Court is ordered to show cause at Glencoe, Minnesota of January 24,1969 why this Court should not allow the ‘Appeal herein, therefore, : : [7 18 HEREBY ORDERED that Plaintiff appear before this Court on January 22,1969 at 7 P.l. at the Credit River Town Hall, Scott county, Minnestoa, and show Cause why this Court should not, at 2 hearing to be held at that time when both sides will be given the opportunity to present evidence, grant the Motion and relief requested by Defendant Jerone ‘Daly and why this Court's Notice of Refusal to Atiow appeal Hexein should not be made absolute. ; Service of the, above order shall be ae ort Defendant, its 7 ye Rttorney or Agents. January 20,1969First National Bank of Montgomery, = Plaintiff, oe pane ano DEGREE Jerome Daly, Defendant. The above entitled action came on before the Court and a Jury of 12 on December 7,1968 at 10:00 A.M. Plaintiff appeared by its President’ Lawrence V, Morgan and was represented by its Counsel Theodore R. Mellby, Defendant appeared on his own behalf. A Jury of Talesmen were called, impanneled and sworn to try the issues in this Case. Lawrence V. Morgan was the only witness called for Plaintiff and Defendant testified as the only witness in his own behalf. ' Plaintiff brought this as a Common Law action for the recovery of the possession of Lot 19, Fairview Beach, Scott County,Minn. Plaintiff claimed title to the Real Property in question by foreclosure of a Note and Mortgage Deed dated May 8,1964 which Plaintiff claimed was in default at the time foreclosure proceedings were started. Defendant appeared and answered that the Plaintiff created ‘the money ahd credit upon its own books by bookeeping-entry as the consideration for the Note and Mortgage of May 8,1964'and alleged failure’ of consideration for the Mortgage Deed and alleged that the Sheriff's sale passed no title to Plaintiff. * The issues tried to the Jury were whether there'was a lawful consideration and whether Defendant had waived his rights to complain about the consideration having paid on the Note for almost 3 years. Mr. Morgan admitted that all of the money or credit which was used as a consideration was created upon their books, that this was standard banking. practice exercised by their bank in combination with the Federal Reserve Bank of Minneapolis, another private Bank, further that he knew of no United States Statute or Law that gave the Plaintiff the authority to do this. Plaintiff further claimed that Defendant by using the ledger book created credit and by paying‘on the Note and Mortgage waived ang’ right to complain about the consideration and that Defendant was estopped from doing 50. At 12:15 on December 7,1968 the Jury returned a unaminous verdict for the Defendant. Now therefore, by virtue of the authority vested in me pursuant to the Declaration of Independence, the Northwest Ordinance of 1787, the Constitution of the United States and the Constitution and laws of the State of Minnesota not inconsistent therewith: IT IS HEREBY ORDERED, ADJUDGED AND DECREED: Phat Plaintiff is not entitled to recover the possession of Lot 19, Fairview Beach, Scott County, Minnesota according to the Plat thereof on file in the Register of Deeds office. 2, That because of failure of a lawful consideration the Note and Mortgage dated May 8,1964 are null and void. 3. That the Sheriff's sale of the above described premises held on June 26,1967 is null and void, of no effect. 4. That Plaintiff has no right, title or interest in said premises or lien thereon, as is above described. .PE IEE 4. That Plaintiff has no right, title or interest in said premises or lien thereon, as is above described. : 5. That any provision in the Minnesota Constitution and any Minnesota Statute limiting the Jurisdiction of this Court is repugnant to the Constitution of the United States and to the Bill of Rights of the Minnesota Constitution and is null and void and that this Court has Jurisdiction to render complete Justice in this Cause. 6. That Defendant is awarded coats in the sum of $75.00 and execution is hereby issued therefore. 7. A 10 day stay is granted. 4 8. The following memorandum and any supplemental memorandum made and filed by this Court in support of this Judgment is hereby made a part hereof by reference. *, _— Dated December 9,1968 CREDIT RIVER TOWNSHIP SCOTT COUNTY, MINNESOTA , 3 15MEMORANDUM The issues in this case were simple. There was no material dispute on the facts for the Jury to resolve. Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of there interlocking activity and practices, and both being Banking Instutions Incorporated under the Laws of the United States, are in the Law to be treated as one and the same Bank, did create the entire $14,000.00 in money or credit upon its own books by bookeeping entry, That this was the Consideration used to support the Note dated May 8,1964 andthe Mortgage of the same date. The money and credit first came into existance when they created it. Mr. Morgan admitted that no United States Law or Statute existed. which gave him the -right to do this. A lawful consideration must exist and be . tendered to support the Note. See Anheuser-Busch Brewing Co. v. Bmma Mason, 44 Minn. 318, 46 N.W. 558. The Jury found there was no lawful consideration and I agree. Only Goa can created something of value out of nothing.value out of nothing. Bven if Defendant could be charged with waiver or estoppel as a matter of Law this is no defense to the Plaintiff. The Law leaves wrongdoers where it finds them. See sections 50, 51 and 52 of am gur 2d "Actions" on page 584 -"no action will lie to recover on a claim based upon, or in any manner depending upon, a fraudulent, illegal, or immoral transaction or contract to which Plaintiff was a party. Plaintiff's act of creating credit is not authorized by the Constitution and Laws of the United States, is unconstitutional and void, and is not a lawful consideration in the eyes of the Law to support any thing or upon which any lawful rights can be built, Nothing in the Constitution of the United states limits the Jurisdiction of this Court, which is one of original Jurisdiction with right of trial by Jury guaranteed. This is a Common Law Action. Minnesota cannot limit or impair the power of this Court to render Complete Justice between the parties. Any provisions in the Constitution and laws of Minnesota which attempt to do so_af@/ repugnant to the 16ape Constitution of the United States and aff void. No question as to the Jurisdiction of this Court was raised by either party at the trial. Both parties were given complete liberty to subnit any and all facts and law to the Jury, at least in so far as they saw fit. No complaint was made by Plaintiff that Plaintiff did not recieve a fair trial. From the admissions made by Mr. Morgan the path of duty was made direct and clear for the Jury. Their Verdict could not reasonably have been otherwise. Justice was rendered completely and without-denial, promptly and without delay, ‘freely and without purchase, conformable to the laws in this Court op December oF 7,1968, December 9,1968 CREDIT RIVERS SCOTT COUNTY, nal =] / SDSEICI Note: It has never been doubted thaf a Note given ona Consideration which is prohibited by law is void./Tt has been determined, independent of Acts of Congress, that sailing under the license of an enemy is illegal. The enmission of Bills of Credit upon the books of these private Corporations, for the purposes of private gain is not warranted by the Constitution of the United States ard is unlawful. See Craig v. Mo. 4 Peters Reports 912. This Court cari tread only that path which is marked out by duty. MVM.1% ‘THE FEDERAL RESERVE SYSTEM hold only a fraction of their deposits as reserves and the fact that payments made with the proceeds of bank ioans are eventually redeposited with banks make it possible for additional reserve funds, as they are deposited and invested ‘through the banking system as.a whole, o generate deposits on a multiple scale, An Apparent Banking Paradox? The foregoing discussion of the working of the banking system explains an apparent paradox that is the source ‘of much confusion to banking students. On the one hand, the practical experience of each individual banker is that his ability to make the loans or acquire the investments making up his portfolio of earning assets derives from his receipt of depositors’ money. On the other hand, we have seen that the bulk of the deposits now existing have originated through expansion of bank loans or investments by a multiple of the reserve funds available to commercial banks as a group. Expressed another way, increases in their reserve funds are to be thought of as the ultimate source of increases in bank lending and investing power and thus of deposits. The statements are not contradictory. In ohe case, the say-to-day aspect of a process is described. In a bank's ‘operating experience, the demand deposits originating in Joans and investments move actively from one bank to another in response to money payments in business. and Personal transactions. The deposits seldom stay with the bank of origin, The series of transactions is as follows: When a bank makes a loan, it credits the amount to the borrower's eposit account; the depositor writes checks against his 1 FONcTio! account in favor of various of his them at their banks. Thus the lend retain or receive back as deposits or the money that it lent, while a ange that is lent by other Banks is ikely its customers. From the point of view ofthe indiv the statement that the ability of a si invest rests largely on the volume o by depositors is correct. Taking the whole, however, demand deposits or and investments in accordance with a of bank reserves. The 0wo inference process are not in confit; the First 0 perspective of one bank among mai has the perspective of banks as a grc ‘The commercial banks as a whole if additional reserves are made ava Federal Reserve System is the only ast by law with discretionary power to the money that serves ax bank reser Sooke cash, Th, tie amas a ‘oF reducing the economy's supply of Federal Reserve, ‘New Federal Reserve money, wher the public for hand-to-hand circu reserves of member banks, After itl first bank acquiring it, as explained at money continues to expand into ‘ passes from bank to bank until dep established multiple of the additiona Federal Reserve action has supplied.BANKS ow 5 I FUNCTION OF BANK RESERVES account in favor of various of his creditors who deposit them at their banks. Thus the lending bank is likely to retain or recsive back as deposits only a small portion of the money that it lent, while a large portion of the money that is lent by other banks is likely to be brought to it by its customers. ‘THE FEDERAL RESERVE SYSTEM a How the process of expansion in deposits and bank loans and investments has worked out over the years is depicted by the accompanying chart. The curve “deposits and cur- tency" relates to the public's holdings of demand deposits, time deposits, and currency. Time deposits are included because commercial banks in this country generally engage From the point of view ofthe individual bank, therefore, / in both a time deposit and a demand deposit business and the statement that the ability of a single bank to lend or invest rests largely on the volume of funds brought to it bby depositors is correct. Taking the banking system as @ whole, however, demand deposits originate in bank loans and investments in accordance with an authorized multiple of bank reserves. The two inferences about the banking Process are not in conflict; the first one is drawn from the perspective of one bank among many, while the second has the perspective of banks as a group, ‘The commercial banks as a whole can create money only if additional reserves are made available to them. ‘The Federal Reserve System is the only instrumentality endowed by la with dsratonry power to eens (or seeseky she money ta ses Wonk Tere oe eae Docket cash, Thus, the Ulimate capability for expanding co reducing the economy's supply of money rests with the Federal Reserve. ‘New Federal Reserve money, when it is not wanted by the public for hand-to-hand circulation, becomes the reserves of member banks, After it leaves the hands of the first bank acquiring it, as explained above, the new reserver * ‘moncy continues to expand into ‘deposit money as it passes from bank to bank until deposits stand in some established multiple of the additional reserve funds that Federal Reserve action has supplied, 4577 do not segregate their loans and investments behind the ‘Wo types of deposits. SPOSTTS AL Adittonal Aspects of Bank Credit Expansion ‘At this siage of our discussion, three other important aspects of the functioning of the banking system must be noted. The firsts that bank credit and monelary expansion ( on the basis of newly acquired reserves takes place only 16els FUNCTION OF BANK RESERVES through a series of banking transactions. Each transaction takes time on the part of individual bank managers and, therefore, the deposit-multiplying effect of new bank reserves is spread over a period. The banking process thus affords some measure of built-in protection against unduly rapid expansion of bank credit should a large additional supply of reserve funds suddenly become available to commercial banks. ‘The second point is that for expansion of bank credit to take place at all there must be a demand for it by eredit- worthy borrowers — those whose financial standing is such as to entail a likelihood that the loan will be repaid at maturity — and/or an available supply of low-risk investment securities such as would be appropriate for banks to purchase. Normally these conditions prevail, but there are times when demand for bank credit is slack, eligible Joans or sevurities are in short supply, and the {interest rate on bank investments has felled with the result: that banks have increased their preference for cash. Such conditions tend to slow down bank credit expansion. In general, market conditions for bankable paper and atti- tudes of bankers with respect to the market exert an im- portant influence on whether, with a given addition to the volume of bank reserves, expansion of bank credit will be faster or slower. . : Thirdly, it must be kept in mind that reserve banking power to create or extinguish high-powered money is, exercised through a market mechanism. “Thie Federal Reserve may assume the intiative'in creating or extinguish- ing bank reserves, or the member banks may take the initiative through borrowing or repayment of borrowing. at the Federal Reserve. n ‘THE FEDERAL RESERVE Sometimes the force: another. At times this ¢ an abrupt impact on the surés working to expanc reserves. At other time tend. to bring about cit bank reserves than are public policy, especially t0 borrow is changing ra ‘The relation between rest bank initiative in changi credit was discussed in ¢ These additional aspe significant because they i expect bank credit and any simple multiple of ch or contraction takes plat and these have an int ot desires for’ money a1 foans and investments in the course of credit « reactions of the public the extent’and nature of that are attained. Managerrient of Reserve In matiaging its reser cial bank constantly wa flows of deposits that r and, botrowers. It estime iis and ite reserve posi %ION OF BANK RESERVES ctions, Each transaction sal bank managers and, g effect of new bank he banking process thus rotection against unduly jould a large additional y become available to ansion of bank credit to Jemand for it by credit- e financial standing is the loan will be repaid ble supply of low-risk uid be appropriate for se conditions. prevail, for bank credit is slack, short supply, and the has falls with the result reference for cash, Such ak eredit expansion. In ankable paper and atti- the market exert an im- 1a given addition to the of bank credit will be ad that reserve banking high-powered money is schanism. ‘The Federal in creating or extinguish- ct banks may take the epayment of borrowing 7 ‘THE FEDERAL RESERVE SYSTEM Sometimes the forces of initiative work against one ~ another. At times this counteraction may work to avoid an abrupt impact on the flow of credit and money of pres- surés working to expand of contract the volume of bank reserves. At other times, banks’ desires to borrow may tend. to bring about either larger or smaller changes in ‘bank reserves than are desirable from the viewpoint of public policy, especially in periods when banks’ willingness 40 borrow is changing rapidly in response to market forces. ‘The relation between reserve banking initiative and member bank initiative in changing the volume of Federal Reserve credit was discussed in Chapter IIL These additional aspects of bank credit expansion are significant because they indicate that in practice we cannot expect bank credit and moncy to expand or contract by any simple multiple of changes in bank reserves. Expansion or contraction takes place under given market conditions, and these have an influence on the public's preferences or desires for moncy and on the banks’ preferences for loans and investments. Market conditions are modified in the course of credit expansion or contraction, but the reactions of the public and of the banks: will influence the extent‘and nature of the changes in money and credit that are attained. Managerion of Reserve Balances In maging is reserve balances, an individual commer: ial bank constantly watches offsetting inflows and out- flows of deposits that result from activities of depositors and,botrowers. It estimates their net impact on its depos- its and its reserve position. Its day-to-day: management” ii : | | CHAPTER X RELATION OF RESERVE BANKING TO CURRENCY. The Federal Reserre System is responsible for providing on elastic supply of currency. In this faction it pays out eurteney in response to the publie’s demand ond absorbs redundant currency. N important purpose of the Federal Reserve Act was to provide an elastic supply of currency — one that ‘would expand and contract in accordance with the needs of the public. Until 1914 the currency consisted principally of notes issued by, the Treasury that were secured by gold or silver and of national bank notes secured by specified kinds of U.S. Government obligations, along with gold and silver coin. These forms of currency were so limited in amount that additional paper money could not easily . be supplied when the nation’s business needed it. As.a result, currency would become hard to get and-at times command a premium. Currency shortages, together with other relaied developments, caused several financial crises ‘or panics, such as the isis of 1907. One of the tasks of the Federal Reserve System is to : 2 a7‘THE FEDERAL RESERVE SYSTEM prevent such crises by providing a kind of currency that responds in volume to the needs of the country. The Federal Reserve note is such a currency. ‘The currency mechanism provided under the Federal Reserve Act has worked satisfactorily: currency moves into and out of circulation automatically in response to an {increase or decrease in the public demand, The Treasury, the Federal Reserve Banks, and the thousands of local ‘banks throughout the country form a system that dis- tributes currency promptly wherever it is needed and retires surplus currency when the public demand subsides. How Federal Reserve Notes Are Paid Out Federal Reserve notes are paid out by a Federal Reserve Bank fo a member bank on request, and the amount 50 paid out is charged to the member bank's reserve account. ‘Any Federal Reserve Bank, in turn, can obtain the needed notes from its Federal Reserve Agent, a representative of the Board of Governors of the Federal Reserve System, ‘who is locatéd at the Federal Reserve Bank and has custody of its unissued notes. “The Reserve Bank obtaining notes must pledge with the Federal Reserve Agent an amount of collateral at least equal to the amount of notes issued. This collateral may consist of gold certificates, U.S. Government securities, and ‘eligible short-term paper discounted or purchased by the Reserve Bank. The amount of notes that may be issued is subject to an outside limit in that a'Reserve Bank must have gold certificate reserves of not less than 25 per cent of its Federal Reserve notes in circulation (and also of its deposit liabilities). Gold certificates pledged as coltateral with the Federal Reserve Agent and gold certifi 178 : RELATION TO CURRENCY cates deposited by the Reserve Bank with the Treasury of the United States as a redemption fund for Federal Reservérnotes both arc counted as a reserve against notes. KINDS. OF. CURRENCY Decamber 31, 1982 ‘As our mofietary system works, currency in circulation increases when the public satisfies its Janger needs by withdrawing cash from banks. When these needs dectine and member banks receive excess currency’Trom their depositors, the banks redeposit it with the Federal Re- serve Banks, where they-receive credit in their reserve ‘accounts. The Reserve Banks can then return excess notes 19 ‘THE FEDERAL RESERVE to the Federal Reserve 1 had pledged as collatera ‘As of mid-1963 the to tion outside the Treast $3565 billion, of which was Federal Reserve n0 rency in cireulation are fncludes United States financing), various issu retirement, silver certific [tier for issue in denominati the SI and $2 bills, as ¥ nations, were in other fc icates and United ; permits the Federal R inations as Tow as ST, ai beretired. All Kinds of currency are legal tender, and among them. It may be endowed all forms of are all receivable at the the public has more eu may all be paid out by for currency increase: reference will be made tion rather than to any Desiand for Curtency Ithas already been s in circulation changes 180PRARRFASSAS ee RELATION TO CURRENCY cates deposited by the Reserve Bank with the Treasury of the United States as a redemption fund for Federal Reservérnotes both are counted as a reserve against notes. ips, OF. CURRENCY December 31 1962 As our morietary system works, currency in circulation fincreases-when the public satisfies its Jarger needs by withdrawing cash from banks. When these needs’ decline and member. banks receive excess currency’Trom their depositors, the banks redeposit it with the’ Federal Re- serve Banks, where they*recsive credit in their reserve accounts, The Reserve Banks can then return excess notes 179 ‘THE FEDERAL RESERVE SYSTEM to the Federal Reserve Agents and redéem the assets they hhad pledged as collateral for the notes. ‘As of mid-1963 the total amount of currency in circula- tion outside the Treasury and the Federal Reserve was, 835.5 billion, of which $30.3 billion —or six-sevenths — was Federal Reserve notes. All of the other kinds of cur- ency in circulation are Treasury curréncy. Such currency includes United States note’ (a remnant of Civil War financing), various issues of paper money in process of retirement, silver certificates silver coin, nickels, and cents. ‘Until 1963, Federal Reserve notes were not author for issue in denominations of less than $5. Hence, all of the SI and $2 bills, as well as some bills of larger denomi: nations, were in other forms of paper money, chiefly silver certificates and United States notes. A law passed in 1963 permits the Federal Reserve to isiue notes im denom= nations as Tow as ST, and silver ceraticates will eventually be retired. : ~All Kinds of currency in circulation in the United States are legal tender, and the public makes no distinction among them. It may be said that the Federal Reserve has endowed all forms of currency with elasticity since they are all receivable at the Federal Reserve Banks whenever the public has more currency than it needs and since they ‘may all be paid out by the Reserve Banks when demand for currency increases. In the subsequent discussion reference will be made to the total of currency in circula- tion rather than to any particular kind. . Deriiand for Curcency 7 ‘Tt has already been stated that the amount of currency in circulation changes in response to changes in the pub- 180seAmdar 4, ano iavaka 0 ag money evca in criminal proceedings, where, as a rule, the greatest strlet * ness of construction prevails.” However, notwithstanding the generally pre | vaillng rule that bank: notes are money, there is considerable authority, espe- iy among the earlier eates, which maintains the role that bank n fader coin and paper money. 48, “array “Bp ere et oy tnt cha ten tool ings en a eee On oe ae aya a ene oa ee Ear nee, Ge ie cote ning mote he ta Sree a ites fe oe a a elie pcaealy Recaps i tame od ak Sent a gia ree pe enh i acme ee ee ee ae rane nee ee Ty peesay peaiy tel peieet ea ate wpm ad ae Bs gi pct Sa or ae ein of eee fa a wnat : a semring Sab rn cee wags pt fla mano ming en ny datett ace Wil i German ee || al aan oo te oe Foner earn ol mee eat ee care Sao maar etait d oak heme || ame genom areas Sea eee STRATE OL ara cnatiat teat tamer seen sateen tres 4 oe : oan th teas AS Gactcen dn ree eas at | | nie not to be classed as money: f a 9, Oertieates of Depost, Hegotiale Tnstrament, elz—Cevtfeater of | deposi or other vouchers for money deposited insolvent beaks, payable a \ demand; area. most couvenicat medium of exchange, and are extensively - ‘ee incominecial ad Shaneal transactions to represent ibe money fh 7 yf epeited, and. as the equivalent thereof, and. are considered im most | Fekep oe noney"- Stsbasiy a erated cane wale tor el eet | payment, is 2 subsite for money which Is eommonly and generally sed i i Basinees ‘and commersial transactions and likewise in legal prosesdings snd \ nye cone so sash ony Thon Hfar bette he a | ! i § 8. Bonk Notes—The evirts are’not agreed whether liank ntea"are 10 berclassed az toney, but-the waight-of authocity and the’better reason sip- | porta the yale that bank notes constitute 2 part of the common currency of te country® and ordinarily pass as rioney.? | statute authorizing « money deposit in liew of an undertaking, the deposi | of a certified check is a éuffcient compliance withthe statate,® and ithes * {also been held that where the question involved is whether negotinble pax pox vas purchased with money, an uncertifed check received nd presetly« paid in cash is equivalent to money. * ‘aeneray ag to ie of exo. a8 7 i Bernt; See Ag Sar 10, Bus bw Sores anaes terete a eae oe Shetatew, Bionercan. S27 tows, 28. 368 {°rGaiene Yoo, Raptor, 28 mt ra. ‘ "SSS tS, Slate we ave 38 Ap PehGhas EBigiaue Pw NOR ae Re ae AR Pa WER Ben ‘hone’, 4am Gee ic Sirs tt) Taree | Bem, abt " Uaako Bt, LP fe reepman, cy Weoteard, 2 Hows Parone weeius ase 36 Am Jur IL, COINAGE, ISSUANCE, AND REGULATION eae § 11. Generally.—it is obvious that a uniform monetary system is an es. sential requisite of modern commerce, and that governmental control and regulation is necessary in order to secure such uniformity. ‘The powers of ‘various gorernmental authorities in this connection? and particular matters and subjects of regulation,* are considered in the following sections, ‘The establishment of a standard unit of value is disenssed in a prior section? ‘The issuance of bank notes is diseussed under another title § 12. By Federal Government —In order that money throughout the Unit- ed States may be uniform, the Federal Government 's given, by the Con tution of the United States, the exclusive power to toin, money amd regulate its value and the value of foreign coin. Congress bas the power to make all Inws which shall be necessary and proper to carry into elfect these powers? ‘Hence, Congress may establish a uniform national egrreney, declare of what it shalt consist, endow that currency with the character and quel money having a defined legal value, by requiring its acceptance at its face value as legal tender in the discharge of all debts, and regulate the value of mich money, unless by s0 doing property is taken without due process of In ‘Moreover, Congress, under its power to provide a currency for the entire ‘country, may deny the quality of legal tender to foreign coins, and may pro: ‘vide by Jaw againct the imposition on the eqmmunity of counterfeit and, base ‘coin, and may restrain by suitable ensctinents cizeulation a3 mc notes not issued under its own xathority.? joney of any $38 By States—By the Constitution of the United States, thi’ several slates are prohibited trom coining monty, aaiting bile af sedi’ ae ae Si ansthiog ba gol sad diver ou ¢ eas Se g US 38, a Ge ae SL atts Sty eves 8 Fhe) ea Fat Gos 00.08 Bt Chern} 1, 16 Am Dee 128, ore SoSH GE ut, TL od tHe, E'S CUT HE atu tee ave no power to make benk notes le tender" except at SCdsbw and Gus oping tae siate ‘As a general rule, the extent of a state's power as'to currency is limitéd’ to the right to establish banks, to regulate or prohibit the circulation, with- {im the state, of foreign notes, and to determine in what thé public dues sball {be paid,” and inasmuch asa state is prohibited from coining money, the money Which it may coin cannot be circulated as such, A creditor will be ‘under no obligation to receive it in discharge of his debt; and if any st tory provision of the state is framed, with a view of forcing the cireulatioi! I | of sach coin, by suspending the interest or postponing the debt of a creditor where it fe reftsed, nuch statute is void bessuse it acta on the thing probib- ed and comes directly in conSiet witk the Constitution’ "Similarly, apy | plying the prohibition ageinst making anyching bat gold or silver evia « | Tegal tender in the payment of debts, « state statute providing that a ered- {ter mnt, on penalty of delay, indorse his consent om an_ execution, £9 Te, | ese property payment of is debt eva eet | §.14 By Municipalities —it seems well éstablised tat a municipal ‘cor? {poration fx state in which itis ageinst public policy, as well as express { lew, for any person or corporate body to isue stall bills to creulate as eur= \ reney has no implied power to sue fuch Bille. Moreover, ach power is not | conferred by a clause in the eity charter, authorising the | Congress may isue coin of the sume Aenominaiins a8 those already current ty laws bute ley trie value than the, by Tsson of containing Tosz | ogu of the peoions meth and therchy eoabe Sebtore to isharge thet © cbs hy the pment of euins of te lesa rel value= ‘cag, arming 28 NY M91 NE ander jaw it mont Sey, Sean SEM PTS “SE 7 IER Morte ¥, Stisoarh « Peis) a9, 7 nd, 2 Jem We. ea 3 eae eG Fs ae ad Gi, 2's Lf hbiian of Ae, 181 Fhe ian each a St at Bette ieee sian Esmee ESE ae rtapasinser enn 12 Waica) are oe gaat of Tew tae Ba Settee tee Saar, a a oath a8 Am Sur}—3016 Am Jur2d “1g RE ese 82 8 AUR S54; Sate v Denny, 118 CONSTITUTIONAL LAW ” 20 °C. ores Powens Le Gureaat $219. Genel! “The power fo maintain joel deparamen ian incident to the soveregny of cach sate? Under the doctrine of the separation of the powers of govern: seat? judical power, a1 dsingulshed from exceutve and legiative power, 4s‘vested in the Courts as a separate magisracys “The judiciary i an independent department of the sate and of the federal _governient, deriving none o is jadieial power from either of the other depart- Rion "Tes tue altough the legelature may create courts under the jroviions of the consitstiog, | When’a court is cresteds the Judicint power ENconlcrred by the constitution, and not oy the act cresting the court? "Tt swas mid at an early period in American law that the judeial power vn ev Wallorganizad goverment ought to be cocrtenive with the eglaive powcr to far, at least aa private rights are to be enforced by judicial proceedings Tre tule i now well seed that under the various Sate government, the . Byte has lost nothing by i and on is breach he bas suffered no damage 1, Ix Genexan; Necessory ‘cognizable by courts, No benefit acctued to him who made the promise, nor — pe pe pera teep ee fase a eee age wey iy rahe bye eet Sek rece ee ‘Technically, consideration is defined as some right, interest, profit, or ben- “This argument loses much of its force because of the rule that the courts do eg ea ne Sar ee Se a ee et ee i oe ee Se ae ae dele cece Cee ate ecuaetin © men yee no Ba sper of cond oe ieee feat aie esere Dancin zien ke tome ce py cule ay Os em tion, Or destruction ‘of 2 legal relation; or return promise bargained for and given in exchange for the promise” Consideration i, in effect the price brrgained™ and paid for a promise™—that someting given ia’ exchange cetera 7 ra? promise : , consderation® Imm ctions now, however, private seals have forthe prom!" some Juiidedens conideradon is eine by Mawel? Be abaed by statute and are declared fo Be witout effect Tn addon, igeeean ee aaeeerere eee ieee eaulen @ ome cg jn jurlsdictions which have adopted the Uniform Commercial Code,’ the Se a oes 2 om provision in the Code article on “Sales” that the afiing of a seal to a writing a8 that of blood, or of natural love and affection, or of love and fection eee aie ee eee ae based on kindred by blood or marriage” whereas “valuable” consideration cence in cntemee Ee ele ay oF sell goods 7 4s generally understood. at money. or something having monetary value. stitute the writing a sealed instrument applic, and the law with respect 2 form as a seal at common law.* ‘At common law, a seal was deemed to dispense with, or raise a presumption ws Although ‘hutorieally the terms “quid pro quo” and “mudum pactam™ 3 sraled instruments docs not apply to much a contractor afer NE ote ce ee Bs SRR Meese rece ede Sa a ptt tenn ci es the "a pro gon” and. ny prone nt sepported by consteration sid of, ands necessary to the enforceability or validity of, a contract. It fol Hs acdc ata ; sy foe Tn the sts ful pro am the Wiliam, Contre 3d ed 1599 sy Biecinant Geetha altho 0k" raed Snsfan Poa as ; derived from the civil lw. "When the English — 1 $ 102, infra. ered ue ap action Ea. tise, a Kelly Conn, 184 Mass ibe mained for he poorer 455,35 RE ST. 3 se seue (led 1. ae 4 sesseas (ine Seng ey eee no Se Jon tf Dare Bon, Dict sperm gest te Ge ut aan 109 nd rb EE Gelli tnd 'e auid preggo nde fa act In Commercial Cae §2-208. alco, 8 ex 2 EON teen ns sometimes ern teaied & Uniform Comme § sprted on and as sich more than ch ina vl fock Desert ge fashion Phe, be oe itn ang weet 2 th Sas eet 2, Slushier ¥ Mallet Land & Catle Co. | | i i : ecu ieeremeteeioe 5 ers 2 ie ie y Bhs Mets, ue Ran hone peas Be ae BE a RE Tate Se Ment NS LE Wh) Garey Weber as'hd fags Ba eaten ty Of & Gas Co. 61 Obla 247, 161 P 216, w Lang, 43. NY 493. 7 ¥ Tennesiee, 155 Go . Wrlieg ther od 197 wes i "g Teapen v Topi 1? Ou 8 : ' mons sean ie ae “ ns oe ay S88 poeta ai ec 9 pn Gta EIR cherie aipevias sia Bei | wr ‘at. 1, Seopa 9 Saker, © a Si ae re 195 im « The puidenn te gman eee is said thot the movt widely wed def ‘words ofa contract the avid pe Ee 66, 32 NE ohh St on ae secre Gah ita his 18 Fee Get v Heaberin, 254 Towa S215 118, FOREN Sat Ge hada, Towa 286, 329, UALR 1301; 11, Brody + Dake Power Co (CAS NC) Ups die wees, Conners 20, Davis Morgan 1 732; Sonesta Bodie 2ei,st8Easere1 Am Jor24 BILLS AND NOTES $215 set oy adh de Sar orn sien ecb rds NTL es deen i Sera Eat sues « al inea a esas 2 ene fa owgy ata corer erm Es a eo a eae a et eae or ae eat Som Coe Come err, dare as artes Sree ee eee ae Commercial paper without affecting ‘any other statutes or rules of law relating Som pre ont ety ay ghee ck $2. Rees tas eee ee ep ea a patag samp facae but itrements syating required Tevemoe stamps afc Eiidunea’ ue atiwe cpresly ialidaies an? The revenue samp i Te par ef 2 pisetsory atte had the omision of the stamp of false t aol he day doer bot afer nego? : 4 “JL, CONSIDERATION a : : AL De Graeme, = $215. Generally, . - This portion of the article treats of the nese, suiciency, and legaity a ae Han di raat ran sigan econ Teckel eoeyere fre matters of consideration, or “value” or 8 trarser of a bil of note com Hderatin for an extemion ‘or molifeaton, a8 datingused fom a renewal Eaurameney we elect of executory comidcraton on the tcondonal matore Bf an onder oF promise’ the efect of the presence or absence of a statement Sf consideration? and netice of, of from, tbe carederation, 17. Azo Corp. ¥ Myer (BO Dal) 95.7 CurinAeGraw Go y Bidinay 198 Be Seems MES, TS BALE, Binion gassed a Han ly "ee list Rag gte Ach Be oi 0 sean 738, Arosa Sore» Mya (Depa ss pHa Hank {Broen, NO Neb 257, 199 NW (SERENE EPR es, ‘ Boar 2 "6 HEs8¢ ct seg laf, iia 3p, Tale v Hever, 314 Pa 204, 171 4 ca : 120. Seer x Me. Vernon Boring Co, (DC Be Shay aa Soi oe Be a8 acl els SP ‘ [a niform Commerc Cole $ 3-113. {vane | NGoe Ont » Powers, 177 Pa Soper 253, 110 Leon see oe ee eet lor topeae‘dompe 2 Aw Jun Laos’ baller, "Comment 2 to Unifona Comercial ‘Forms 2:748, Code §3-303, i Uf ie re Des (8 oh 18 ine en aes tees ‘4 acne tN eecnce «ele» Ta iE SLT 19) NW 905; Farmers Sav. Bank v Ne Towa 605; Ley NW $55, 22 ALR §2i6 BILLS AND NOTES it Am Jurd Like any other contract, 2 negotiable instrument requires copsderation as betwee the original parties, of @ recognized substitute therefor but such i Fasrument i presumed to have been esved for a valuable consideration : 3B. Waar Gonsrrores $216. Generay ae “The ance piciles at to what contiuted coniferation fr a contac Feet BOT Spear im another article apply in determining fo dicen Often fata bil or nee Any canaeration® that by ean reeks wo daingusned from “yoo consideration? sue Ba aaa ra aangle contacts supports negeabe ramet. “Fis, wil nothing fa consideration unles f i known and agreed ®0 28 se Wa Serie and thew. Gefone are ot comply compen: Sa eae ray be tld to cost m any Deel fo the promuor 8 Se SU aEidtmeat toe promises” or fo cust when, atte Uae of the 11, 4297, inf, 32, See Vat 12. 39, See Conrmacrs (st ed 175 eta). 34. Free y Woodspeciaien, Tne. 130 Gal Hoot ie ‘iran, vag Howe, Van op 20785, oe P04 Be, Hig, Be Boron, Zoe RV", icsss the heuding, "What conaiaten cone — des» gue of fact fr she any whether i i 8 3 STALK, 58 arin, foe| : Sh al | | Alsi NedGe MORO a toe! dice rs pray hal | “Coiba (ea mute of coptract, and serie AEM gee heme DAT iawn wea sly ames: | ‘Huple contract. "Negotiable Tastrament Law ton for servcss rendered. Meginnes v Me- ge cower, SECLNS figs Ege heey, 8 Yowa 263, 169 WY 30, att ohigh gat Sat ee” mest "tevin x Loabard sively, $6 Obie Mice eg” doe ming HE so ce Si PUR am ocd v Ta (GH4 Me) 8 El Se at er mbeng Seay |S eth, SBN OAL Se Be utbclinty of Constlcration, ‘Comment 3 | meyer v Merdhund, 259 Il Avp 247; Beker, o Uniform Commercial Code § 3-408. Glover & Vale, Inc. v Heitman, Jad te Tefen STEALS HS Gate fone ices eons oe oa) Be Sl WisisE 277 ew iat ‘Cours often rea of “good” cosierion — sm eae od pa a a et oa ci Bas doy, 22, MEd 7 Sie stp |B, ef ALR 1074 Gly Trae & Six Bank | Ea ade ah eed 22 (Ci | 8, et hie Abo Sho Se is ener atte ze BASOE i aan eae el Gir es Seeded! Sad’ Sper Wa fie, sehr : cadena 3 the price volunty paid | a tn may, Sake ier tne ey soo Titer Serer gees (Rew aly emt ee et Seong TAMA 1 Hie S01, | Sesctpomibiy even sated or wadarabon |MWAmJur2a 7 BILLS AND NOTES §217 promisor, thé promises ér any other person has done or abstain fom don fF docs or abstans from doing, or promises to do or to abstain from doing, Something, the consideration being the act, abstineoce, or promise™ It has been said generally that to ive a consideration value for ue supporting of = promis, it must be such as deprives the person to whom the promise made St a right which he posesed before, or eke confers upon the other party & benefit which hip. could not otherwise have ad” ‘Consideration tay be given to the prombor or to some other person Tt matters not from whom the consideration moves or to whom it goes Hf it 4s bargained for as the exchange for the promise, the promise is not gratuitous! Consideration need not move ftom the promisee! and lt need not be pecuniary or benefeial to the promitor Consideration moving to the promisor may be benefit wo a thd peron® or x detsiment incurred on bs behalf? Gonsideration isnot always a fact question. If all the facts concerning the aus of coneration are without dispute, such isve beeames a question of $217. Adequacy, : « ‘The Jaw concerns itself only with the existence of Tegal consideration for a Dill or note. “Mere inadequacy of the consideration is not within this concern, in the absence of fraud,* mistake, undue influence,* mental incapacity of the By ee otter Howard y Tare (CAB Mo) ener y Nordlund, 269 W App 267; Greén. BUIESE cooing Sie fin|s Oocte'y "Coed Tehowe Wosstdt dant Ferner Hee fe SRS Fah ake SO Mle 200 Se od er Gr Nahe 4S yea"oe, which OBo wnt forel's sa’ omit Ma Mack y havys 109 Obl SS, ory detain BOE Tet 08 ER Zan ST « Senden 39, Waser County Nat tank v Duc 204 SWrostheaa on. TS yea C8 DORN, a5, ee’ PEt Univenity, 38°Ghe oe 4, SE NE aS” Sartre mee 20. Westmont Nat, Bank v Payne, 108 NJL 325, 109 4 $20; Slant Sete Sankt Moody, teas Ne Pah toe Lb Fe Le be aera tes Bs ce iS 6, Joos v Hubbard (Tex Civ App) 302 SW 2 Sol, 101 SE24 486 (quekng Raat ‘nord ne a4 486 (note 288 enor rl B Macs» ectupst, Yo, 3i0-cat Te Walls Win 15 As 0,995 spe Wel DORT e ecee Taese Rare th cre 8, Gm ¥ Howard, 40 Del 209, 8 A2d 30. ea Say. Bank y O'Convor, 182 Mich 378, 94 3 Rover «Tart (cae Mo) a6. zae sot HY; Gong Sefer 98 Fa (Ger OUTS (Stee) eRe, a a Sie Ae ile, Bev are SPOT tare MTD ian tems GLVE 30, Aas Goody Br A ier AY" u app 20 Kate, Goce Ut. U8, 88 207; Haves Ena, 29. Ws 2 Mabe lg Meta ead fea ls 2 Mtd 98, 28 i 28 i , G2! ) i Laie v Tooley, 47 Cat App 2447, 117 1 Gretevood Liters Howitt Com, Turner, |P1U 421. Seb | AGE "Ack Séay"Gatsee of St. fo, 5 EL AGR ah Save of Stes | | arene dieaten teksten alta ,9- Shocket v Fickling, 229 SC 412, 93 SE Brome» Tinidad Nat, tet Co, | SET Retesaeh'y Heda Baws (GAIO) 36 F24 G46, 71 AER 342; Tea ‘Va 632, 11 SE2d 052, " g2i7 BILLS AND NOTES MW Am Jur 2d hip oa sue reg te guint of cman wb ihe oho os sete eg an cee he es Fi Se em at cco Sage ee a er ce dae ee er a ie ary to inform himself, is disappoithed in his expectations? : ae tao ree Rein cotta ay es oa ler tg Ee oo tet ea ae ie a Kime piers le oh Soe mt des a ey i ee eel y Ca a A ee Cadet Dee cinlin SOPE US Mayo re onc A omen at yl ne rey cain oe eee eek meters: : 40, Rauschesbach v MeDiniete Bitate, mm Fopworthy Adams, 186 Ky 403, 124 SW me i : 1H gab ars coisa iatan ceee, Hee coeeseacee Repeear PES. - a conden sappertng & note nnd “ate, EW 7 1A, Philpot » Grosinaé, 14 Wall (US) 370, 12: Pitot» Gruninget, 14 Wall (US) $70, 20¢L ed 748] Hargbarger » Eby, 26 dsb TREES, Bat Gs Phins Seely et, Beled Moher ncadsoy’y Govty, 6 PEE 403, Hannon y Fink, 66°OUls 115, 167 P Wie teres Gone Tak SGA TA a REED at rnb Py BS oe SAY as Rhendnc Me, ce Sty tta “eb int fiS; Good ie 3 Bhadit shine ad w age sada ese Bye 7 va na, 1 se Tee seege fy ede tere Sh to der ee he ea Genrereeraeet ins Sent edie, OY ALR fe. ‘There is no rule by which the courts cm 4g, Baltard v Burton, 64 Ve 387, 24 A 769; ‘by guided if they undersaks the deter ion Good vy Dyer, 137 Va 114, 119 SE 277, ear ee Seat : e semen 2 * |) 47, Soaock ¥ Pierson, 66 Ind 405. eanrrrny Stee Wa as ew te fer Fy, 2 20. 20, Harshharger ¥ Eby, 28 Tako 753, 186 Frtig Comins, poner, and geod il ga ‘se ae oe APSE: Wicyiah a ck het obsess aki abt er ne ssilsten erie EERE sees i ete sont 2 Sete enn aims Beaty Tomeriiins ai Aeris a Eh ae eld Sinenvine"bo the valos of services,D. Evvecr or Toratty on Pagnauty Uneowsrruriowat Srarures 1. Tora. Unconsrrrumionatrre $177. Generally. ‘The general rule is that an unconstitutional statute, though having the form and name of law, is in reality no law! but De Srl, 16) 5, 108 A266) Foren ates Mites Gis 18 Je ae ks Ke ron 18, Ce ee a, AERTS, ‘Stew Wiliade 146 NC! ola, at 32 gis Daniele Wiloot, 135 NG sie" st sb aoe seve or Siseniy te School chemi a8 ah me ren y Bagley” 118. Or 77, 243, i074, g eee Couney Ct f'Binn, 17 W Va, Byles nan Some at? Wir 526, 235 NW Weaeed AER GSE 7X reasonable dst i favor of the valty of asta ‘cn, te gual I Met Guaaghin'v Warkecy 100 Ba 7,"83 ABE we ont Mal 27, EPR Somers at EES RL Se eas erat ‘Bd'963, 68 ALI 1018; Davis v Florida Power EO RAE CP oe Sele Shc Bache HE a ae 371; Lynn v Nichols, 122 Mise 170, 302 NYS: SER en ah eines eet wk ESS BL ASLNS Piers ea tne bg Bibs mono eat} ise nat i Se cnet “Nadie i nin edt ind hc wes deel Hstel porn sinter teste pita tte ie feesoan Bee aAeae tide ih ps adits ra ae Lee Ep aiieeemiues Somer Te siege ia rolcincran a musa Sas bee Bane Gebin tire ee 4, 2.516, spr. U8 533,57 2 Socre Beaty Us 97 30 ed ‘Shelby Coury go Ge al So ined aed, ¢ ES: TSG Hye Boek, 3 Kop De ie, 200 E far den 154 US 840, 9 3 S30 ofa Ga, v Sale BU Are s08, 284 3 A 8 Tidy Geayensiobinge Storey Tee. ¥ One Ag! $69 G2 aia, My Seta Ten cet en 34 US eis, 98 Led 300, 7 8 Go) Siew Ganden ‘Gy 2 Tdaho 515, 268-24" 330% ‘Setasry Sev oni Connell, 198 Tows Soh, oR 36 ALR 406; Flournoy y Fie Bank, 197 La 706, 3 Sorta 2447 Opie fon'of Justices, 269. Mais 611, 158 NE 236, SEALH 1417; Sits ex re Miller O'Malley, S42'Mo GH, 117 SWad 919; Carden of Eden Drainace Dl, ¥ Bart Trt Go, $90 Bo 554,°30" Sia “sant ALR 107%, Andere “Legmbaht, {19 Neb 451, 289 RY 778; Bhiy "Beerye 43ND 209, "8 NW. 1045 Tamcadgil v Gros, 26 Otla 403, 109 P 380; ‘Aitijuon v Southern Exp. Ga, 94 SC 484,78 Sete; Ex pane Hollman, 19 SC 6, 60'S 19; Henry County v Santard OW Co. 167 118 Am Jor 241, 16 Am Jur2d gi77 any purpose; since unconstitutionalty dates {rom the time of its enactment, and not merely from the date of the decsion so branding i" an unconstitutional law, in legal contemplation, is at inoperative as if it had never been pase. Such a statute leaves the question that it purports to settle jast as ft would be had the statute not been enacted. Since an unconstitutional law i voi, the general principles fllow that it imposes no duties! caafers no rights" creates no office," bestows no power oF Tes 405,71 302 For Niu, 3 So AER oer base rece (Miler » Schoen) 4d Valls, 18 36 83, SP Atk ayaa 2980S 22,72 Le Bee, CONSTITUTIONAL LAW 683, 98, ALR 1433; pase Suit v Calon, 102 Towa, 206, 7. NW ites iE, holding Goer Sole po iene may be "open unc ‘eit pare ofa Srl yb cued foe SARI SSTAE coect tercaton oe 11. State otra iter v O'Malley, 342 Me an arSwadsia! , rayatbenss, ‘Aili he act of cise of EitineaLaw fioted paar 1, NT US 2h 20 0 ad Tosa; Commoner of React 4 Hepes © Dart, 915 Ga 188102 SEM th; Ceeer Relieen, Sere, foes Onsite Hal 20 Rebition Store Greig 75 Ses SEG Jhae b's ce 21 Seriya Bk {iconget, 130 lows 364,200 NW 8 36 AER eet" Fiotmoy iru Nee Baty 197 La ‘tay ogote enon, 108 Cust Gant Bh,‘ Heney Coober Standart Ol Foam ig, 1h gWad (653, 95" ALR ga ‘Sore v Cindland, 96 Us 406, 101 Paes Bonne v Valen, 156 Wis 195, 126 XW 88. 12, Commisiogss of Reads te Revenue ¥ Darn, 213 Gn 958 3 3 shad 215,60" ACR M00; Miler © 58 Tez 298, 130'sWoa 973, 6 ALR TIT ‘Alsond v Day, 191 Va 418, Sela Blt Te Saie epemeae, ater YB Rehoene’ 146-5 175.158 SE O13, gD AER Nay inns iy Pa 106), So td 1 Corky Bsn aha "276 Us 242, 92 toed $06, 48 Seted Usage, By kek 320 Me 1004, 3 EGG Servo v Sie 8 Wie 31,119 Sea S480 ALE 8, : "Uncaatttionalicy legality of the Nih- 14, Norton v Shelby Cooney, 118, US 426, ext Oe ound of’Zaning Apps w Bega: 30 ef 18,68 Ge LR Seely Sv. Bank ‘Someone af {porate Winans, Sy Comme 200 NW 8, 36 Hey Neae als pu bey rloumor Fist Nat, Bork 137 Be hotir 3 Sod a” Andenon » Lebo, ‘Otdanetite ToeDoor Se TTy'Ret dle ig MO 273" Daly Beery 3S iS Nvizd 3 "Case -ND 25H, Wo NW 104; Henry” County v “403 20. Sate Ong als, 287 Shiog§177 CONSTITUTIONAL LAW 16 Am Jur2a authority ont anyone, affords no proteetion," and justifies no acts performed ‘under ie "A contract which rests on an cinconstitutional salute fret ae obligation to be impaired by subsequent legslevon” No one is bound to obey unconstitutional law and no courts are bound to enfores it! ‘A void act cannot be legally consistent with a valid one* And an uncon: Septet Oi Oster Tene 405,71 sw2d Buhl 19 Neb 431, 229 AW 773: Sate v i 406; toe Fes eee Willams 198°NG ia, eh 35 et; Daly ¥ Beery, ND 2, {70°NW 04; Aikias Beadle Ben. Col bse 444 76 SE 3 See Candlandy 98° Ussh 06, 0 Bonnet v Vale’ 36 Was 3B At ete linttatona to whlch this rule e ‘alee arf 13a, nto 29. Oem » Dank Sian 9 ites (OS) Tab ed Gok nay ine Mac Bank, 199 1a ogy, 3 S0"2d Zea 7 Sel aed of Cora ind Gus" tat, Toi ad Swed bon SPR SEALE doz, Wathig'w Dozen. 153° 20, a contract extent slely forthe pure BRAS Ge WE Ste: Tey “Couter + phat & Soprlag wi ue porta Pe Sanaye, Of a) s Greortianal saute sot weal be Under’ Nebraska aw an, onconsisiona agate Sn ite wali i wad frome ‘teat is" emnetment 26d inca ot E xepsng any right Pope» Ronrd'ef Edu Yor, 65 NE AUS" Jone Coinban Carbo ‘Gton Landa & "Pande (DG Neo) Ig5 E.G" 188 Wea 219,31 ged 990 Rlpp 57. ap dimal 943°US 201-90 b ed" “oceraty. nce tbe sects tw tvaid eget. 72 8 BE get HF US 957, contracts of che obligntion of concracte guar Bet cd abes, 723 Ge rash SERS oe eee bts, ae demented pon'aa uncogttonal Hae, Plowrpoy y Pint Nat Dank, 197 La 1S fees ey oD Te Se shin VSS at IAT site at, Sha ‘Foooennrs (Rev es'§ 5), qa ae & 35, Nope Shelby Conner, 118 US 425, Mo S01, foe sw toh Se auettoge A gob eddie, PSGCTEG Setuty Seri deta? Eehmtunt 1/9 NGL ea AE Bank conta, 96" towa,s64, 200 NW EES \nene Catan Ser hs a 8036 MR UaEp nietmoy v Fiat Nat Bask, (34, Q's. wits Hee Ne 68, Best ti Leer, 38628 Be ft; Daly'v Beery, 35 ND fo), 170 Nt 184 17, eli y Wallace Couney, 62 Kan 812, 2 Ceara, L & LR. Go v Hacker 228 7 f27 Hendenen y Uetes, 175 Hey 18) US Sto. 53'U od oben g Gr Shi Uned Bor" 9W 830.9 AER fro; Bo Sian Reater coda Usctat a) Ped He nk 7 Nee Sede etek, BAG 8G Pore wi (OE denon Ga) 30 supp Seo Hammond ¥ Sark DG Bias Daly “v"Beery, 48) ND" 287, Ge 3i5, 70 SE 475; Rournoy y Bre Nae, Silt? Shobha aaa Pent Nb ’yas cal 28 tae 18 Hiningin y Wohen 129 US 97,30 Sutchehiatl? NAS GAt alte iE US HOTES let oc rok Cae Bip Jaane Saw ale Hew SB, Seth « Govt, 37 Kashe 208, 200 Pea 742, ORY srl een Intent becomes SEAL Lon Hiaheay Conta Bemine? 0” Cate Fae Moe e Se B Ml eh aE NE woe Seacer ee. Ts Geen Wyong 78 Eas coat io lve Sees SO ahs EIEN BeTAER GE haces Fak Ne Brie ioe, 2 Boke aa eta 26 Use, 59 Lt 1010, Herta & BeaGn St) Si aohtasd Se. "9RG, 200 VER 27 Ed 100, Sirsa HA Ses skee nee ASS) Ne aT SA aaa Siaiissacber'v Floren, 131 ex 34, 18 WeAnjurat —”_consttruttoiat Lai gui sia cnet operat tw gee any eng a Ine cee create, Seri eke ua te ee erage ee eee ae Se coe coer eae etna he abaya ger ne pps feelin Si a eee oe SULSE pee Ss os ah noe ieiaeoar Cer eee ea ee era set mr ese ae! ase Peele soe Ron ed Se ee me cot wi en a $178, Protection of rights. ~ ee f ‘The actual existence of a statute piior toa determination that is wnconstie onal isan operative fact and may have consequenees which cannot justly be Sgnored; when a statute which has been in elect for some time i declared LUnconsticationaly questions of rights claimed to have become vested of stat, ‘of prior determinations decmed to have finality and acted upon accordingly, and of public policy in the light of the nature both of the statue and of out application, demand: examination.” Te has been said that an alle [elusive etatement of prinegie of absolute retroactive invalidity cannot be jtea “The general rule is that an uncon no one ics sak ha alpen age presume to know thew mean that ignorance of thelaw exeases noone; if any person acts der an unconstitutional ‘tte, he does a hi pr and me ake the cereus Rights acquired under 2 statute while is duly adjudged to be constitutions ae valid Tegal rights hat are protected by the constittion, not by judicial ‘eckion, But rights acquired under a seatute tha has not been adjudged valid A. Chicago, 1. & TR. Co, v Mache 29 $0: 2170 den 309 US 605, 043 a 1035, BOE TG aa sSs aN bay bees Ce st earl at Mamesre'y Withinton, 237 NC 12, Chieot County Drainage Dist. w Raster thee ts RS 8 en So AR AG. se Sanford Yi, 7 ata, 427 Eihgses en ee ae ere ihe oe be ort ae ee SMEAR Secs ce Be aa el mee rai Seis he etme Herein & 1B See §15, inf, ce tnd sutorty wea123 g179 CONSTITUTIONAL Law 16 Am Jur 2a are subject to be lost if the stanute is adjudged invalid though the statute was considered valid by eminent attorneys, public officers, and others. ‘This general principle as to rights has varied practical applications. ‘Thus, it i held that the fact that one acts ig reliance on,a statute whigh lise thetetofore been adjudged unconstitutional docs not protect him from civil or criminal responsibility, if his act otherwise subjects him to such liability." In a majority of jurisdictions i is held that reliance on a statute which ie subsequently derlared ‘unconstitutional does not protect one {rom civil esponsibility for an act in rl ‘ance thereon which would otherwise subjece him to ability.” On the other hhand, occasionaily the position has been taken, as far as omitifons to perform some duty are concemed, that reliance on a statute which is subsequently held to be unconstitutional protects from civil.or criminal lability one. who omits + an act which, but for the status, would be required by Iawa* Ir has been Stared dhat an unconstitutional Inw should not be applied to work a hardship fF impose a lability on one who has acted in good faith and relied on the validity of a statute before the courts have declared it invalid.” And it has also been held that reliance on a statute subsequently declared unconstitutional may properly be considered by the jury on the Hue of damages in a civil ‘action against the one who relied upon the statute 4178, Vaidation general: by amendnnt of legion White ie bas Been Dracly ed that an encontatons! act-eannot be ‘lida by the leglatre? it soome that iemay be amended Sato conti onal enes far sure opcatiwncvccrned by searing beset ovo, or sopplning thers, co confor Yo the requirements ofthe cone Eivotion?” ‘The true vole sem to be thar where a statute i nvaid by ness fan absence of power inthe leglature inthe fst instarce under the const tion tenact the Inwy not prs for that body to confit or ender the same ‘alld by amendmen; bur where she enocious features ofthe setute may be Femoved or essai ones supple by 2 proper amendmen, 0 that Sad the oe bean primarily dus framed would have been fre from the objecdons exiting SEAMS RIT Aa BE Sasseei. 2 Motolis Pouclm Ca. v Caner Oi Cx ‘ee dom 9 US sears! 16, dmotatone 82 ALR 22 17. Deming w South Caytina Piece & SOMO DUR 219 F201, ere dn fe Orie eehceis Pas ROB La SSE ee SERPS WED, Toa Gina Geabianatteel s Rooney Dae Giitrango Beige Cav Paige 84 NY Tie,” BAGS op Se stra Bow Annotations 33 ALR 265. ay 18, Touas Ca,» Stat, 3t Avie 405, 288 P SIL B85 Ne asi btn 108, SAL = Buca o Sine, 199 Oh Annotations “53 ALR 773. Earmonvesl SHPO TOS IY A 355, fae howaie Wace 19. Sate, Garden Cis ae Tecteaalte TO SEE, SESE NS ‘A seca val and enforceable wikia 3 ext Ved ely us greocghora Sed Serena der Ae may tsa 20. Fleming w South Casslina Bleewic & “tres be extvoded Io the wider eld. fe 2 Go BoM sey BOE Bat se Day Jou, 44 Mo a i j | | YAmJur2 gst many eases the absence of euthority affords a ctrong presumption agsintt its Iaving any legal fopndation.** ° ACTIONS {§50. Actions contrary to public policy and practical considerations. toes not folw, fom the general statement that thice is no wrong without a ined, tat a rpedy G always cbainaBle in Whe courba” Tice Wi Bot Suficent forthe maintenance af an action to remedy slpponod wrong that 1 echt phot gedon sven ian fa the sae ine paca od the interest ‘of sound government to permit the action to preva i considerations most af dines determine the bounds of corrlave right and flutes and the point beyond which the court will decine to impove legal Tabiliy?* Taos, because of thei legal unity, actions between hueband ad wile were ordinarily barred at common law!" and considerations of public polly forbid the bringing of actions against the state or its subdivisions, except ‘with its convent!” “Tne maxim that there {2 no wrong without a remedy het applicable to acts which the written law hss destred to. be ghd” pecially things not malury in 2e, authored by a valid act of the legislature and perluimned With due care and sill in trict conformity with the provatois of the act! Public policy ako forbids the miintenance of any sult in = court of justice, the Wal of which would inevitably lead to the dscloure of trates ‘which ake law itell regards as confidential, and respecting which ft wil ast ‘low the eonfidence to be violsted? 2 151 Actin, wpom pine meg egal o ime ao SOUT order, or wimt the ‘Tresrurer of the ‘etted atte, for the purposes authored By IW. Pre NH, eb 32, 4, 4 Sta, 206; Suh 30 1984, eee fa ey ty #8 Bla, 839; As 25, 2035S, 00 (9,48 tal 106 ox dtivtion ow Pedra ests al eee TE aR Sat ton ee poet ap, oon opp wend" Wha A Uelinie” see ave shy ebacend 0 name oto Teste ttf 28 Wiibana stort of fa Peer Ren orem ‘pau 12.-BANKS AND BANKING cn oe rata “srkaew te fon 241 of Titie& Pewee Depa ii ace meee “tah outa sacnoveds ee ein g180 £7 Bh AU Png of rots evento ad fra {hi order to furnish mutable notes for ‘etrcviation ec SESS sere ten, tbe Come ft Oe, seer apaer te con of te Berelay Sachi, entre tna ie to De enero se tiger to euard ala eee tn tom one aerane, a Sa ae pte ee, fraud gunered mic qoute ot 68 otek {a a anton ot 42, 48,420, $20, 2 #200, aatsat, rou, 00000 ax may be rece 10 00 Piguet reseee boi, fc nls al tee ie bed tna a eet by We crear a tetany under the provisions of this eA Loy Tr bone te tne member of testa ea ere th wc eee ut erg pie 86 98 ak 287 Bec 2,10 see a, on une 4 16, Pub 2 DH Shien a.r7 tah 4) _Byoasteen cM ec Span fas oe novo expe aig pat of saion 186 ssc Se tof es 3 fetta aco note under wetion aL of 10, eo dg of mle rv eo -yrron each notes he beon prepared they shall be aputtea tn the ‘eens, o.10 the designate de etary of mint of ie Untied Blakes nero the ine of busines ofeach Federal reerve bank and ae pe held for the ure of each bank subleck (0 the ender of the Comptroter of the Curency for een antvery ax povided by tls chante, (De®. 28, Sansa. 118,28 Stab 257; May 9, 3820 cD. 206 44,4 Sia 654 asen tau (840, Control and dicetlon of platen and dle by eae of nue and retiemest, of ‘re plates and dle to be procured by the Com- rote ef the Currency for the printing of fueh et- fulting notes aball remain under hs control and ‘iretion, and the expenses necessarily Incured in ‘recuting the laws reefing tothe precuring of #2) oles and ell er expenaeseldental to ther 508 he retirement, shall be ald bythe Federal ener bunts and the Board of Governors of the Poderal | Reserve Bystem shall include tn I estimate of e- ‘pnsey fered etninat the edera) reserve banks & fumclent emount to cover the expenses provided for Imtcotions f1i-Aleand 410-42 of this tile. Cas, 2.1013, eh, €, $16, 38 Stak 267; Avs. 23,1936, eR. ‘44,1300 a), (9 Bia, 106 ‘tn erent “potand fort to Sa ad? eat Srna pom ution te compre st tnth pt. neta 16 of act einer tig set avg, tung hn toa ft Fee Rvs spec. Panetlane red Oy any "te urna aed to tha wt, dna of ase ee 141, Beaminaton of plates and des. ‘The examinaton of pats, de, bed ples, nd 00 forth, and reeuatlon felating fo uch examination fu ites, gle, and wo forth, of natinal-benk notes Dprovided for in aeeton 108 of Unis tl, i extended fo include noter provid for in ecctlons 411-418 MiGcABLof tia ile. Dee 23,1848, 2.6, 426, at. 282.) te erent “provided yl wetens «21-4 nnd ALE SPIRE heres Seve proven for ition tu compre oor pa, of econ 38 of ADSONS SETHE hte Yo il Hi t tr Segape ae a re ‘TITLE 12-DANKS AND BANERIG Page 2164 40 Repned, Je 36 6 a HB 8 Sa ucln, at Des, 28,158, ch 118 48 BAL ST, ‘Fling note bet "manag nk oo i Se teen na (0) of te ‘CIRCULATING NOTES AND BONDS SECURING _At any time during a perled of twenty vous from ‘Doctmber 25, 1015, any member bank deting to Fete the whole of ny part of ia cteulating notes ay fe vith the Treasurer of the United stat ‘epcntion i» sell for fia account, at par eh terucd interest United Bate bonds wecurne e~ ulntion to be reid. (Dee. 20, 1013, eh 6, 128, 4p buat 260) ‘ae ‘nt tonetins of ests of te Depart of ha stint fctons apnea A empire FR ephcineat wee cattrea, ith cal SR ne tucetary oe the Tetary, i oe 1:44, Parchane of bonds by renerve banks. ‘The Trensrer shall at the end of each auatteriy perog, furnish the Bonrd of Governors of the Pe Era Revere Sytem with «Ist of such applestons, nd tye Board of Governors ofthe Federal Reserve Bystem may, ia ts derelon, require the Feder foserre banka to plrchase much bonds from the ‘mks whose applntions have been fied with the ‘Treasurer at ett tan dagn before the end of ony (Guarlerly period at which the Board of Governors Sr he Federal Reserve System may diret the par- Chase to be made! Proud, ‘Tag Pederal reserve tafe chat not be pemaited to purchase am amount to exceed 25000000 of auch bonds In any ona yea", Gad nich amount shall Irtude bonds seqaeed ‘Under sectiong 301-908 and 341 of thle le By the ‘Peder! receve bank, ‘Provided further, That the Boatd of Governors cot the Pedetel Reserve System hall allot to each Foderal reserve beak such proportion of such bonds fr the opital and aurpise af seh bank shall bear te the ogpregse capital and pep of al te Fed ral reserve bans, (Dee. 23, 1613, eh 6, 18, 38 ‘tat 20; Ave. 3, 1996, ch, 14, # 202-0), 48 hat. ca : anton eee ot aroma aa tied pat fw use ar ne Bnet itor station te in rpg tren thom orssag tr Si eis AST, Gold coing of United States "The gol! cole of the United States shall be a legal tender In all payments at thelr norlnal value ‘when tot below he wanderd welght end matt of Tolerance provided by Ia for the single plece, and ‘then reduced tn welght below such standard and Teterance, ett be legs) tender at vaunton In o> porton to thee aetual vel. 6.42585 ok P1810 IST FD FT SE 8 equintton and eo etd Waalen fa 10 #800 seh Te gid fraare sn ebles pore te Desay Hee en the a ef the gla ten 48 of 1458, Standard ster dolar; pad ina ‘aver dollars exined uncer the Act of February 2, sete eh 20, 20 tal 25,26, together wih all aver Gellar coined by the United states, of like wolsht find fineness prior tothe date of euch Act, sal! be "esa! tender at tnetr nominal yey for Al debts lod dues pubic and private, exzopt ere othervise xpress alptated In the contract But noting fn this Setion belt be construed ta authorize the DDerment in niver ef certifentes of Gepost foed ‘Snder the provisions of aections 428 and 420 of this Uile, eb, 28, 1815, eb 20,11, 20 Bs 26) teat ata nar prove for reg nn 1 de te on [ented o obetote Crone Rares "onetnce a AS bth hb hina of ele er eatcy te 1450, Subsidiary aller eal. ‘Tie atlver cole of the Unita Slates in existence = Sune 8,187, of malin ceneminations than #4 shall ‘ern tepa tenaer in el nur not exceeding 819 tn ful ferment of all dues publi and private, (Zune ety ch 12,13, 21 Stat. 0) conmesnew ror, icorperaion sat the Coch, tle ota ead‘ flown “the precent ieee of 0 Wala BEAD Uathe anedainaions has be dala all ‘TITLE 31 MONEY AND FIANCE erator beige nent las ot eneing ‘Etta paymen ofa une pie tna naa i eauetnk ties, te cage wich at debe Oy Sohne’ ins en art to Bu Oe, wok SUMS U2 Genero tw mine vee fr any emu Bottcating sve dtr to nay cue parent oy mtn ESSE, "Beata tr a ay 3 ‘cos nd cunts the Ua an, ‘ln done on anata oh Se. 16460, Mier colo ‘The slnor olne of the United States sb be 8 egal tender, af thle non value for any eon bot exceeding 8 cent in any one payment, 8, tan : ‘oso, 187 ch BD T1817 Bh a cota nd erence of te Ute Bae, tuto pete Race ote tnd reiting eter ot Feet SENT RSs Sec tenktng sestations tobe ga tener Surat goes pate ero 1461, Commenrativ coins = — ¥ Fey Eee Foor ‘oat. fe Mar howl HOA ch an Ib 48a 08 aa ie cia as ae Moy 2 108, Ua fee ee 8, i E sSzSsbale ‘L462, Calon and currence t ‘i colne and urrenees of the United Bates Cn~ ‘chiding Federal Reserv notes and elreiating nptes ‘r Pederal Reserve banks and dalioal banking sas0- | lations) erettor ‘Sul be legal tender forall debt, puble and priate, Dubie charge, xen, dues, and cus except thal | Fo ecing, when below the standard weight ond rte ot tolerance provided by law for the angle | for hereafter ined oF iseued, |; | Page e508 ‘Hons, or the application thereat to any paron or! ‘éreumetanees, i held fnvall, the retatderof sald + eetions, and the application of such proviton to ‘ther persona or ereumstance, hall not be efected thereby, an. 20, 1004, cb, €, 416, 48 tat 344) 1 toe forltet tt pov swore rept bp poston Mf ta (48, Laws repeated ‘AM Aet and parts of Acts consistent with 20 of the provisions of sections 218, 4b, 48H, 48, ‘Staedt, 122, 194, 162, 183, 1840, 280, TE, 21, aan, 230, and 62 of ttle and pets 2 AUIS) 17, end 447 of Tie 12 are repealed, (Gum, 20, 1896, ch, FIT. 48 Stak 344) ‘SULVER PURCHASE Reposted, Pub Le 96-86 tle I #4, Zune Corer, ‘eh 77 Bt Bk a cared the asin tthe reitnt andthe Secretary of the Troaury to bmp: antl to ener ecard uot, rapes, (Chapter ®—LEGAL TENDER. aad mae ed erent ‘ rte ening ote {perenne Quay mene ok ace yeaa 4st, United Staten gold erento (Gold certfeates of the United Siaten payable to ‘peaer on demand aball be legal tender Ye parent fall debs and dues, puble und private, (Dee. 2, 1geb 8,11, AL Bat 310) Au clea an ertenci tt Unite Sats te ege sender eto od lee (452. Usted tates ote ‘United States nots shall be lawful mooey, und a Jaga tender im payment ofall debts, puble nod pri tate, within the United Slates, except for den Imports and terest on the publle debt. GR. 8. 3808) TITLE 31 MONEY AND FOIANCE : rua Roars glee sd aruitng Botan of user eserves fod bataing seein, te eg ena fErpupawct ot pant ent pu carne hd chen ws wstons to ond of 6653. Treanary notes ‘Demand Treasury notes euthorzed by the Act of uly 17, 161, shaper 6,17 Bla. 260, andthe Act of ‘eorury 32,1003, chapter 20,12 tal 22, shall be Theft tloney and s egal tender in ke manner as Uniled ‘tates notes, ‘Trearury notes fantd und the Act of duly 14, 1450, chapter 708,36 Bit, 28 tal be «lena! tender In payment of al debs, publle nd privaie except where otherwise expresly apa [ated in the eonirat, and abel be reelvabe for eure tems, taxes, ad al publle duet (8.4268; July ‘ree tat oatence of reion ao B 8.9882. Tow seoua estas Ie nom a uy Th TO. ‘elatag sev teltone ds abd of toe ‘Treasury noten ised under th ‘Act of Mare 3, 1863, chapter 72, 12 tal 10, and ‘Jone 2, 184, chapter 172,12 Gta, 218-272, chal be Tega tender to the tain extent at United Btates poten, for ther fae vale, excluding tnteest: Pro= lded, ‘That Treasury notes Toru under the Act ‘Sone'9, 1864 ch. 19,19 tat, 218292 shall not be ‘egal tender in payment or redempion ot any notes faoved by any bank, banklog atocatlon, or Baker, ‘alelated and Intended to elreuate at money. ie. 4 3500). Ate te, 109.7, 121 tah. TH June 20,164, evra beak sie ‘3 na ane suns of te Dated tae, tc esevetoer td creating oes Pasa UU, Lagan chy of ener not aeted by Nothing contained im sections 148, 213, 14 220, 40, 403, 410,41, 29, and TL of tis tlle, and ane- tena, i, 101, 27%, and 178 of Tite 32° shal bo construed to alec the legl-tender ually 04 new ‘provided by law of th aller olay, or of any other ‘money ented or isu by the United tater a, HA 1000, eb 4, 13,31 Seat 48) 11 stn ane earrncee of On United tae be eg ‘andere ll abt nw eos 422 aa 6 tla HE, (665, Foreign esi. - ‘Np foretgm old or alver eclos sball be a legal tender in payment of debi. R. 8. #2804) vas