1951 form 56 I am the beneficiary and appoint them as the trustee

Take care of the commercial debts and make them go away

Unclean hands; cannot go into equity going into equity

They run for their lives ; challenge jurisdiction under special
Special deposit

433.2.3.15 W12 I SEARCHED FOR take a case into equity under special
relations or deposit
AND FIDUCIARY DUTY INFO POPPED UP
http://www.floridabar.org/DIVCOM/JN/JNJournal01.nsf/c0d731e03de98
28d852574580042ae7a/a90812c2b64922f9852576d5007366ed!
OpenDocument&Highlight=0,*

HOWARD G MATERIAL BELOW

We, the people out here in society are the beneficiaries of the government
trust. But the court laid it out and here it is. It starts Jersey City v. Hague
which can be found at 115 Atlantic Reporter 2nd, page 8. And starting on
page 11 of the case the court said, the complaint in effect alleges that the
defendantwhich is Mr. Hague, the mayor of Jersey Cityby force of
their official position systematically extorted from the employees
{government workers} of the plaintiff municipalitythat is Jersey City
three percent of their official income from 1917 to 1949. I have misstated
those dates a couple of times. My memory for those kinds of things doesnt
always serve me correctly but Im reading it right from the paper right
now. From 1917 to 1949 as a condition of their employment and continued
employment and the defendant retained these funds for their own use.
{Hague must have recently come back as an international (light-fingered)
banker your money is our moneysorry about that, slavewe have no
honor.}. The substantial question before us is whether they can be
permitted in law to do this. This what was presented to the court. The

court said, we do not have to look far for any answer. In Driscol v.
Burlington Driscol Bridge Company
http://www.leagle.com/decision/19524418NJ433_1370.xml/DRISCOLL
%20v.%20BURLINGTON-BRISTOL%20BRIDGE%20CO
this is a New Jersey Supreme Court decisionthis court said without
dissent and I quote, the members of the Board of Chosen Freeholders
now, thats the same crowd of little morons that we call the town
legislature, the town council, the city council, the county council, same
concept. These are the little In Kent County, Delaware they call it the
levy court. It might be the only honest place in America to let you know
what these councilmen of county government are really there for, to levy
taxes upon the peoplethats why theyre called the levy court. Thats
what the Board of Chosen Freeholders in New Jersey is.
Anyway, then the court went on to say, and the bridge commission is an
organization put together by the city council, the town council, the county
council, whatever, for a purpose to be a business, to erect bridges in this
case and these bridge commissioners, it says, both the Board of Chosen
Freeholders and the bridge commissioners are public officers holding
positions of public trust. They stand in a fiduciary relation to the people
whom they have been elected or appointed to servethats us.
They stand in this position of fiduciary responsibility as trustees, the
court is saying and then they quote almost a dozen court cases as far up as
US Supreme Court decisions and a couple of state supreme court decisions
and a couple of federal appeal court decisionsabout a dozen different
cases theyre citing.
Then the court goes on to say, as fiduciaries and trustees of the public wealth
meaning government, the public governmentthey are under an inescapable
obligation to serve the public with the highest fidelity. In discharging the duties of their
office they are required to display such intelligence and skill as they are capable of.
Ha, Ha, I hate to be so arrogant but I am that way so whether I hate it or
not I am arrogant and I have to be arrogant about a statement like that
because intelligence and skill does not show in these people at all. But
anyway, it goes on to say, and to be diligent and conscientious, to
exercise their discretion not arbitrarily but reasonably and above all to
display good faith, honesty and integrity. The key word there is honesty.
Following that up there is another dozen court cases cited that back this
up. Some of them are US Supreme Court cases, some of them are Court of
Appeals cases of the US and some of them are state supreme courts. Again,

same kind of a scenario. The court went on to say and I quote, they must
be impervious to corrupting influence and they must transact the business
frankly and openly in the light of public scrutiny so that that the public
may know and be able to judge them and their work fairly. Ha, ha, ha. The
public is so educated to be morons that they wouldnt even recognize the
wrongs that are being done. Now look around you and think about what I
just said and what is actually going on. I identified it 100% correctly.
Unfortunately we have been educated to be morons. I dont recommend
you sending your children to school. I havent recommended sending your
children to school since the day I walked out of high school at sixteen
years of age and walked away from it, looked back and said, they ought to
burn those damned places. These schools are destroying the minds of our
people
History
The name of the street derives from the 17th century when Wall Street formed the
northern boundary of the New Amsterdam settlement. In the 1640s basic picket and
plank fences denoted plots and residences in the colony.[3] Later, on behalf of the
Dutch West India Company, Peter Stuyvesant, in part using African slaves,[4] led the
Dutch in the construction of a stronger stockade. A strengthened 12-foot (4 m)
wall[5] against attack from various Native American tribes. In 1685 surveyors laid
out Wall Street along the lines of the original stockade.[5] The wall was dismantled
by the British colonial government in 1699. In the late 18th century, there was a
buttonwood tree at the foot of Wall Street under which traders and speculators
would gather to trade informally. In 1792, the traders formalized their association
with the Buttonwood Agreement. This was the origin of the New York Stock
Exchange.[6]

In 1789, Federal Hall and Wall Street was the scene of the United States first
presidential inauguration. George Washington took the oath of office on the balcony
of Federal Hall overlooking Wall Street on April 30, 1789. This was also the location
of the passing of the Bill Of Rights.

In 1889, the original stock report, Customers Afternoon Letter, became the The Wall
Street Journal, named in reference to the actual street, it is now an influential
international daily business newspaper published in New York City.[7] For many
years, it had the widest circulation of any newspaper in the United States, although
it is currently second to USA Today.[8] It has been owned by Rupert Murdochs News
Corp. since 2007.

Decline and revitalization

The Manhattan Financial District is one of the largest business districts in the United
States, and second in New York City only to Midtown. In the late 19th and early 20th
centuries, the corporate culture of New York was a primary center for the
construction of skyscrapers (rivaled only by Chicago). The Financial District, even
today, actually makes up a distinct skyline of its own, separate from but not soaring
to quite the same heights as its midtown counterpart a few miles to the north.

September 16, 1920: a bomb exploded in front of the headquarters of J.P. Morgan
Inc. at 23 Wall Street, killing 38 and injuring 300 people. Federal Hall (26 Wall
Street), with its statue of George Washington, is shown on the right.

Built in 1914, 23 Wall Street was known as the House of Morgan and for decades
the banks headquarters was the most important address in American finance. At
noon, on September 16, 1920, a bomb exploded in front of the bank, killing 38 and
injuring 300. Shortly before the bomb went off a warning note was placed in a
mailbox at the corner of Cedar Street and Broadway. While theories abound about
who was behind the Wall Street bombing and why they did it, after twenty years
investigating the matter, the FBI rendered the file inactive in 1940 without ever
finding the perpetrators. The explosion did, however, help fuel the Red Scare that
was underway at the time.

A crowd gathers at the intersection of Wall and Broad streets after the 1929 crash.
The New York Stock Exchange (18 Broad Street) is on the right. The majority of
people are congregating in Wall Street on the left between the House of Morgan
(23 Wall Street) and Federal Hall (26 Wall Street).

The stock market crash of 1929 ushered in the Great Depression. During this era,
development of the financial district stagnated. Construction of the World Trade
Center was one of the few major projects undertaken during the last three quarters
of the 20th century and, financially, it was not originally as successful as planned.
Some point to the fact that it was actually a government-funded project,
constructed by the Port Authority of New York and New Jersey with the intention of
spurring economic development downtown. All the tools necessary for international
trade were to be housed in the complex. However, at the beginning, much of the
space remained vacant.

Nonetheless, some large and powerful firms did purchase space in the World Trade
Center. Further, it attracted other powerful businesses to the immediate
neighborhood. In some ways, it could be argued that the World Trade Center
changed the nexus of the Financial District from Wall Street to the Trade Center
complex. When the World Trade Center was destroyed in the September 11, 2001
attacks, it left somewhat of an architectural void as new developments since the
1970s had played off the complex aesthetically. The attacks, however, contributed
to the loss of business on Wall Street, due to temporary-to-permanent relocation to
New Jersey and further decentralization with establishments transferred to cities like
Chicago, Denver, and Boston.

Wall Street itself and the Financial District as a whole are crowded with highrises by
any measure. Further, the loss of the World Trade Center has actually spurred
development in the Financial District on a scale that hadnt been seen in decades.
This is in part due to tax incentives provided by the federal, state and local
governments to encourage development. A new World Trade Center complex,
centered on Daniel Liebeskinds Memory Foundations plan, is in the early stages of
development and one building has already been replaced. The centerpiece to this
plan is the 1,776-foot (541 m) tall 1 World Trade Center (formerly known as the
Freedom Tower). New residential buildings are already sprouting up, and buildings
that were previously office space are being converted to residential units, also
benefiting from the tax incentives. Better access to the Financial District is planned
in the form of a new commuter rail station and a new downtown transportation
center centered on Fulton Street. If you look at the building on the left, you will see
that it is most likely modeled after the Greek Parthenon

Buildings

Wall Streets architecture is generally rooted in the Gilded Age, though there are
also some art deco influences in the neighborhood. Landmark buildings on Wall
Street include Federal Hall, 14 Wall Street (Bankers Trust Company Building), 40 Wall
Street (The Trump Building), and the New York Stock Exchange at the corner of
Broad Street.

Personalities

Over the years, certain elite persons associated with Wall Street have become
famous. Although their reputations are usually limited to members of the stock
brokerage and banking communities, several have gained national and international
fame. Some earned their fame for their investment strategies, financing, reporting,
legal or regulatory skills, while others are remembered for their greed. One of the
most iconic representations of the market prosperity is the Charging Bull sculpture,
by Arturo Di Modica. Representing the bull market economy, the sculpture was
originally placed in front of the New York Stock Exchange, and subsequently moved
to its current location in Bowling Green.

Wall Streets culture is often criticized as being rigid. This is a decades-old

stereotype stemming from the Wall Street establishments protection of its
interests, and the link to the WASP establishment. More recent criticism has
centered on structural problems and lack of a desire to change well-established
habits. Wall Streets establishment resists government oversight and regulation. At
the same time, New York City has a reputation as a very bureaucratic city, which
makes entry into the neighborhood difficult or even impossible for middle class
entrepreneurs.

The ethnic background of Wall Streeters remains largely unchanged since the days
of the railway barons of the early 1900s, as documented by their portraits in the
Wall+Broad chapter of The Corners Project

http://restorewallstreet.com/history/

email outofthematrix@unseen.is
Howard Griswold Conference CallThursday, May 4, 2013

Partial
Howard Griswold Conference calls:
conf call (talkshoe) 724-444-7444 95099# 1#
(non-talkshoe members must use the 1# after the pin number)
Thursdays at 8 p.m., Eastern Time.
Talkshoe mutes the phone lines

********************************************
http://www.talkshoe.com/talkshoe/web/audioPop.jsp?episodeId=661654&cmd=apop
**********************************
http://www.talkshoe.com/talkshoe/web/talkCast.jsp?
masterId=95099&episodeId=665319&cmd=hrepi
**************************
Howard's link for Thursday:
http://www.talkshoe.com/talkshoe/web/talkCast.jsp?
masterId=95099&episodeId=665319&cmd=hrepi
Hosted by: Gemini Research Group
Phone Number: (724) 444-7444
Call ID: 95099

Howard is the Guest Featured Speaker on Saturday at 6 p.m., Eastern Time at:
http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=99043&cmd=tc
Hosted by: :Mighty-Mo;
Phone Number: (724) 444-7444
Call ID: 99043
Rod Class AIB call on Talkshoe, the pin number is 48361 at nine oclock PM, Tues & Fri
(Eastern Time). Thats Americas Independent Bureau, AIB on Talkshoe.
**************************
American Reconstruction Project.
The talkshoe phone number: 724-444-7444 The pin number: 126101 # .
10:00 pm Eastern Time, 9 central, 8 mountain and 7 pm Pacific Time.

Amber and Colin will be running the call.

**********************************

Howard is listed on Angela's at :

http://www.myprivateaudio.com/Guest-Speaker-Pages-Info.html
http://www.myprivateaudio.com/Talkshoes.html
****************************
Howard Griswold talks about contracts and the application of the law on the KMA Club.
*****************************
http://geminiinvestmentsresearchgroup.wordpress.com/forms
***************************
http://www.youtube.com/watch?v=d8IanYOTLI8
******************************

Note: there is a hydrate water call 8 pm, Eastern Mondays, 218-844-3388 966771#
Howards home number: 302-875-2653 (between 9:30, a.m, and 7:00, p.m.)

All correspondence to:

Gemini Investment Research Group, POB 398, Delmar, Del. 19940
(do not address mail to Howard Griswold since Howard has not taken up residence in that
mailbox and since hes on good terms with his wife he isnt likely to in the foreseeable future.)
Donations are accepted.
At my urging Jack to utilize his air time and put someone on his show not espousing
bull s&^% , he invited Howard on his show, loved Howard and then invited Howard
on his show regularly. Not: This is NOT a photo of Howard Griswold and was a jokefunny photo that Mike/aka Jack put up. Howard self describes himself as looking like
Abe Lincoln with a full head of dark brown hair and slight build.
Audios are located at http://www.talkshoe.com/talkshoe/web/talkCast.jsp?
masterId=95099&cmd=tc and is for NON COMMERCIAL use, and on Miss Angela's
page at
http://www.myprivateaudio.com/Guest-Speaker-Pages-Info.html#anchor_361 and
https://www.scribd.com/collections/4054342/Howard-Griswold-Transcript and look up
all material related to Howard's transcripts on " dogpile.com"
All correspondence to: him should be sent to

Gemini Investment Research Group, POB 398, Delmar, Del. 19940

do not address mail to Howard Griswold

https://www.youtube.com/watch?v=gPMvSDFa6_g
********************
I am not a public servant {officer or employee} and any claim to the contrary must be
proved by payroll records and my alleged public servant {officer} title and sworn under
penalty of perjury with full commercial liability for the person who swears to it.
Im not an officer or agent or employee of the government. I am not resident within the
government and any claim to the contrary must be proved by payroll records. Prove that
Im being paid by the government to be a government employee. If you cant then your law
doesnt apply to me.
Government has all the right in the world to make laws and rules regulating itself.
When they impose any of these rules and regulations beyond government upon any of us
{private} theyre breaching their fiduciary duty {as public officers and trustees of
government}. All employees of government are in a trustee position. The courts have said
this emphatically
Public means governmentprivate means non-government.
Your acceptance of anything that government offers you at any level in any way, shape or
form is a consent to cooperate with them and to put yourself under their authority and
control.
Governments have all the authority, rights and duties to make all the laws necessary to
regulate themselves. Their law, rules, regulations, codes and so-called statutes do not apply
to the people outside of government.
****************
The scam that has been used is this lawyer reference to resident. You are a resident of the
State of Blank. They will always say that. They will go so far as to put it in writing in the
complaints or motions to the courts that the defendants, the plaintiff or any other party is a
resident of the State of Blank.
In order to get the individual under the jurisdiction of the courtthey use this language
this is a presumption that is created which must be rebutted with rebuttable evidence to
prevent them from proceeding against you. Now, this is going to really upset lawyers and
judges because if you learn how to do this, and its not hard, but if you learn how to do this
and you take an affidavit into court with a motion to dismiss under Rule 12(b)(6), they fail
to state a claim upon which relief can be granted, thats Rule 12(b)(6) because the
complaint is made against a person who is not a resident of the State.
Accompany that with an affidavit signed and sworn to under penalty of perjury and
witnessed by a notary public that states the same thing, I am not a resident of the State of
Blank because I do not work for the State of Blank.

I am not employed in any way, shape or form. I am not an officer of the State of Blank.
The presumption that I am is erroneous and must be corrected on the record.
Simple enough, isnt it? Motion to dismiss this claim under Rule 12(b)(6) because the claim
fails to state a claim upon which relief can be granted against a person who is not a resident
of the State of Blank. End of motion.
Between the two, the motion and the affidavit, the court must rule and it must rule that you
are not the person that the complaint can be lodged against. The case must be dismissed.
When they dont then you want to start looking up this Code of Judicial Ethics. Theyre not
following the law.
********************
If they create the presumption and you rebut it and then they come back at you with, well
you do have a drivers license, you say, well, if I do its also erroneous. Dont let them
trick you back into admitting that youre within the state because if you have a drivers
license its within the states jurisdiction.
***********************
Well, commerce is the only real authority that government has in its regulatory and taxing
powers is the power to tax commerce and to regulate it. It doesnt have any powers at all
over private property. It never did.
These lawyers, scum that they are, have duped their people into registering their property
telling them that they all have to do it in order to gain the appearance of authority over the
property that is your private property.
They still dont have any authority over it.
The higher courts have upheld it over and over again in different cases that their
registration scams do not hold enough water to give them the authority to regulate your
property such as the birth certificate gives them the authority to regulate your body
property.
********************************
Any pleading that uses the law to gain an advantage over your private property is in fact a
sham pleading and under Rule 11 can be struck upon a proper request to the court to do so.
********************************

There is no government left. The government has ceased to function in its normal position
that it was in under the Constitution. Everything has been farmed out to privately owned
corporations to do the government work. So Social Security is actually a private insurance
company. Its not government.
Its doing it for government but its there for anybody to do business with it. So, in reality
social security is not a benefit or a privilege from government but theyll try to tell you it is.
All you got to do is do a little bit of leg work to find where its listed as a business on Dunn
and Bradstreet and present it to them that, look, this is a private company. Its in business
to make money. This is not government.
*********************************

If you look at most statutes thats what they say and all persons only applies to all persons
in the agency that they give it to unless it specifically says, all persons who have a license to
sell alcohol or all persons who operate a motor vehicle or all persons who have a license to
sell tobacco products.
It has to be specific. It cant just say all persons and when it does it hasnt been properly
assigned to the agency for implementation. So what the agencies do is they sue in their own
name. For instance, the IRS makes a complaint against you under United States v. You or
The United States of America v. You, IRS, Department of the Treasury complaining that you
didnt pay taxes.
Well, what they are doing is acting as an assignee of an authority to collect taxes but where
in the statutes were they assigned this authority to take you to court, to bring claims
against you? Its not there.
**********************************
This is all important to understand that in most cases the actual action is being made
against you by an assigned person. Either the agency has been assigned or has not been
assigned. The police department is acting like they are the assignee but by law have not
been assigned to do the functions that theyre doing. There is no statutory law that they can
bring themselves within a provision of in order to execute the assignment of action that
theyre doing, an action on a negotiable instrument of any kind is an action on a note or on
a chosen action.
*******************************
Every action shall be prosecuted in the name of the real party in interest.
The rule requires you to objectan objection for ratification of commencement of the action
by or joinder or substitution of the real party in interest and such ratification, joinder or
substitution shall have the same effect as if the action had been commenced in the name of the
real party in interest. See the trickery of this kind of stuff that lawyers put together? As long
as you dont object we can do this with assignment and get away with it and theyre doing
it and theyre getting away with it because we dont know enough to object.
**********************************
It is a dishonest act of enforcing a law upon a private individual that government has no
right, no power, no authority whatsoever to enforce upon the private individual. That is
breach of their fiduciary duty with no stupid questions asked.
When you file a breach of fiduciary duty case you are actually filing in equity. Leave out all
statutory references even though that example that we send around came out of Colorado
forms and it refers to a Colorado statutory representation that does put it in equity but it
isnt necessary to quote any statutory reference in order to open the court of equity which
is the Article 3 courts
(unless youre a teacher or government worker or have contracted with the government
with full disclosure, etc whereby youre not private anymore and youre resident within the
government.)
You got to be party to government to enjoy governments benefits, privileges and
opportunities.
*********************
The executive branch of government is only enforcing the legislation for the benefit of
protecting the government and not necessarily doing what theyre supposed to do to protect

us. The one that is the most guilty of not following the law is the judges. It comes from the
canon of ethics for judicial conduct.
Canon #2, very important, the canon says: a judge shall avoid impropriety and the
appearance of impropriety in all of the judges activities. Subsection A, Promoting Public
Confidence. You know anybody whos competent in the courts? I dont. Nobody believes
the courts are honest, correct and truthful and fairnot even most of the lawyers.
********************
This defendant states that he is without knowledge sufficient to form a belief as to the
correctness of the statement of the claim of the plaintiffs and he neither admits nor denies
the allegations concerning the claims of the plaintiffs but demands the plaintiffs strictly
prove their claim.
************************************
Failing to answer is devastatingits a total loss. Failing to answer and back the answer up
with an affidavit denying what they claim amounts to a total loss. A vague or ambiguous
complaint is remedied by a request for a more definite statement. That will put things off
for a little while until you get a decent statement. You must object to whatever they finally
state by affidavit.
************************************
Now, another rule that I found to be interesting Rule 11. Rule 11, its called signing of
pleadings but its got a very interesting statement in it that I think clarifies something I
bought up a week or two ago and that is I have been finding that lawyers are not making a
notice of appearance and putting it in the docket record of the case and I thought sure they
were supposed to because I read parts of the dictionary definition to you about the
appearance of an attorney and the duty of the court recorder to put it in the docket. The
docket is the list of actions that are done within a court action.
The complaint itself, the answer to the complaint, the motion to dismiss, all those different
functions that go on within a complaint, notices that are written into it, theyre all docketed
in this sheet called the docking sheet or a docket sheet depending upon what court and
what name they have for it.
*************************************
We need to object every time an attorney goes into court and the docket sheet shows that
they have not entered their appearance on the docket sheet with an official entry that
everything that theyre doing is a sham pleading and that they should be sanctioned for this
or at least ordered by the court to put the notice into the record that they are the attorney
for the attorney for the party before they proceed any further. That will stop the
proceeding for that day.
********************************************
The reason why lawyers dont write affidavits is because the lawyer cant. They dont have
first-hand knowledge. They cannot testify because they werent there.
*******************************
Sometimes theyll get an affidavit signed by somebody they call a robo signer, somebody
who signs hundreds and hundreds of these affidavits for the benefits of the lawyers that
theyre not the real party in interest.

Theyre not real either and that can be proven. All you have to do is object to that affidavit
because you have no proof from this party that they actually work for such-and-such a
bank or such-and-such a government agency or whatever. You have no proof given within
the affidavit and you have no proof that this individual was there at the time of the incident
or the transaction and really does have first-hand knowledge because they didnt express
that in the affidavitand they dont. And thats how you object to their affidavits and that
proves that theyre just a robo-signer, theyre not the real party.
***************************************
Theyll always say that we need the information from you. The burden of proof is upon the
complaining party, not upon the defendant. That, again, is a violation of due process.
****************************************
You didnt give me enough knowledge or information about what youre talking about to
give you a responsive answer.
***************************************
How can there possibly be a credit card when the law forbids the banks to lend credit?
**************************************
Dont give them the facts that they want. Dont give them the answers to creates facts or
even the appearance of facts that they want. The burden of evidence according to the law is
upon the complaining party, not upon the defendant.
The defendant doesnt have to produce or admit to anything.
***************************
Their own paperwork is your evidence to prove their dishonest act, have a copy of the
statute, for instance, that shows what they were supposed to do which they didnt do or a
copy of the rule that shows what they were supposed to do that they didnt donot that
complicated for any of us to do.
****************************************
The state of some name is the government.
We have been so misled into thinking that we live in the state of something but when in fact
the only time youre in the state of something is when youre employed as an officer or an
employee of the state government or any of its political subdivisions.
***************************************
Look it up in the states laws. Every state has laws on the procedure of how theyre
supposed to do things, even the rules of filing a complaint. They can be found and those
rules require things that are commonly left out of complaints.
***************************************
The whole basis of appeal is based on whether or not due process was met and whether the
judge erred in the due process.
****************************
Resident means located at, an agent of or associated with the state government when you
admit to being a resident of the state. When they make a claim that youre a resident of the
state you can rebut that claim by an affidavit stating that you are not a resident of the state.

You are not employed by the government and if they want to claim that you are all they
have to do is come up with payroll records to prove it.
Caution: The Department of Education is an agency of the State.
*****************************
What land is in the State of Blank? Certainly not your private land that you boughtthe
land that the state bought to build state office buildings or state agencies would be in the
State of Blank, not your private land.
That law does not apply to private land and it cannot. The law is not allowed by the
constitutional mandates to extend any of its law and its activities of taxation and regulation
to private property. So it cannot extend to your private land and cannot require your
private land to be recorded. But some lawyer told you it had to be because he lies and you
didnt question it, you let it happen and its recorded. If you want to get out of the private
property tax or the property tax on private propertyI should have said that more
correctlyyou have to get that deed back out of their records, out of their recording to that
land. The same thing applies to birth certificates.
The only thing that the law related to births can apply to its corporations. It cannot apply
to a natural child birth of people because the government is a corporation and the only
thing a corporation can do is deal with other corporations and it can even extend the
authority of operating as a corporation to individuals who request such an authority from
the state. And on the date that that requested corporation is authorized that corporation is
born and that birth has to be recorded in the states records as a corporation.
A natural child from natural people does not fall under that statute. The wording does not
cover people and any lawyer that will tell you that it does is lying to you.
********************************

Note: questions to Howard are now submitted to Howard, preferably typed, to Gemini Research
rather than fielded on the call live. It would be desirable to send a couple of bucks for mailing,
copying and printing costs.
*********************
Extra legal help is available from the firm, Ketchum, Dewey, Cheatham and Howe.

*******************************************************************
****************************************

For reference:
Jersey City v. Hague, 115 Atlantic Reporter 2nd, page 8 (A 2nd )
**********
Project for all:
Howard needs information on how to write a complaint for breach of the trust.
Hit the libraries!
He would appreciate any research help.
*****************************************************
Start
*****************************************************
{01:48:39.791
[Howard]
Ive been at this now for 33 years and when I first started people just looked at me
like I had 16 eyeballs or something, that I was an alien from some other planet. You got to be
crazy. Well, theyre learning that I wasnt the one that was crazy, that the people that are leading
us are the ones that are crazy. Its the inmates from the asylum that are running the asylum today
and theyre getting away with everything because the rest of us are not paying attention. But
people like Bryan, he started way back in the 80s, I started back in 1979. A couple other people
started long before we did back in the 60s and the 70s but they didnt get very far. Most of them
have grown old and passed away on us. A number of them that have started along with him and I
have passed away but new ones are coming all the timenew ones are coming along. And as the
new ones come along some of them are finding some of the bull crap thats been put out there
and making a big thing out of it like it was wonderfully new and they have to be guided in the
right direction, not left to go astray like some of the old stuff went astray. I dont want to toot my
horn but TOOT, TOOT. If it wasnt for me pushing but the whole damned system of people that
are involved in standing up against the evil system to realize that this all based on commerce
today, it is not based on common law wed still have a whole bunch of people out there
promoting common law. Luckily we dont have that many. Theres just a few that are still stuck
in the old rut. The rest of them seem to be waking up. They seem to be seeing through this stuff.
They seem to be seeing that the courts are corrupt, that the banks are corrupt, the whole system is
corrupted, that its run by these lawyers but nobody seems to have grasped to much yet on what
can be done about it. Weve talked about for what, about three years now. Weve pushed this
issue of breach of fiduciary duty.
For a year of the time we spent asking other people to help us to try to find a form for how to file
the complaint because these scum that run there different libraries and keep the information for
lawyers to use available have hidden this kind of stuff. They didnt even want the lawyers to
know about this but we found some. Its still around. It can be dug up. And the most important
one, I keep referring back to, the one that enlightened me it took me a while to grasp the
understanding of it so I dont expect people to just jump and down right away and say, oh, man,
thats really great, and get on the bandwagon and go do it because it takes time to digest these
things for the brain to settle in and comprehend them.
I dont expect immediate results but I do expect some kind of results somewhere from somebody
to start waking up and helping to teach what were teaching. And I dont hear it, anywhere in the

country I dont hear it. Theyre still on some of the old rhetoric and hog wash that theyve been
promoting for years because they havent grasped the realization that government is in a trust
position. Government personnel are the trustees and we are the beneficiaries. We, the people
out here in society are the beneficiaries of the government trust. But the
court laid it out and here it is. It starts Jersey City v. Hague which can be
found at 115 Atlantic Reporter 2nd, page 8. And starting on page 11 of the
case the court said, the complaint in effect alleges that the defendant
which is Mr. Hague, the mayor of Jersey Cityby force of their official
position systematically extorted from the employees {government
workers} of the plaintiff municipalitythat is Jersey Citythree percent
of their official income from 1917 to 1949. I have misstated those dates a
couple of times. My memory for those kinds of things doesnt always serve
me correctly but Im reading it right from the paper right now. From 1917
to 1949 as a condition of their employment and continued employment
and the defendant retained these funds for their own use. {Hague must
have recently come back as an international (light-fingered) banker
your money is our moneysorry about that, slavewe have no honor.}.
The substantial question before us is whether they can be permitted in law
to do this. This what was presented to the court. The court said, we do not
have to look far for any answer. In Driscol v. Burlington Driscol Bridge
Companythis is a New Jersey Supreme Court decisionthis court said
without dissent and I quote, the members of the Board of Chosen
Freeholdersnow, thats the same crowd of little morons that we call the
town legislature, the town council, the city council, the county council,
same concept. These are the little In Kent County, Delaware they call it
the levy court.
It might be the only honest place in America to let you know what these
councilmen of county government are really there for, to levy taxes upon
the peoplethats why theyre called the levy court. Thats what the Board
of Chosen Freeholders in New Jersey is. Anyway, then the court went on to
say, and the bridge commission is an organization put together by the
city council, the town council, the county council, whatever, for a purpose
to be a business, to erect bridges in this case and these bridge
commissioners, it says, both the Board of Chosen Freeholders and the
bridge commissioners are public officers holding positions of public trust.
They stand in a fiduciary relation to the people whom they have been
elected or appointed to servethats us. They stand in this position of
fiduciary responsibility as trustees, the court is saying and then they
quote almost a dozen court cases as far up as US Supreme Court decisions
and a couple of state supreme court decisions and a couple of federal
appeal court decisionsabout a dozen different cases theyre citing. Then
the court goes on to say, as fiduciaries and trustees of the public welfare
meaning government, the public governmentthey are under an
inescapable obligation to serve the public with the highest fidelity.

In discharging the duties of their office they are required to display such
intelligence and skill as they are capable of. Ha, Ha, I hate to be so
arrogant but I am that way so whether I hate it or not I am arrogant and I
have to be arrogant about a statement like that because intelligence and
skill does not show in these people at all. But anyway, it goes on to say,
and to be diligent and conscientious, to exercise their discretion not
arbitrarily but reasonably and above all to display good faith, honesty
and integrity. The key word there is honesty.
Following that up there is another dozen court cases cited that back this
up. Some of them are US Supreme Court cases, some of them are Court of
Appeals cases of the US and some of them are state supreme courts. Again,
same kind of a scenario. The court went on to say and I quote, they must
be impervious to corrupting influence and they must transact the business
frankly and openly in the light of public scrutiny so that that the public
may know and be able to judge them and their work fairly. Ha, ha, ha.
The public is so educated to be morons that they wouldnt even recognize
the wrongs that are being done. Now look around you and think about
what I just said and what is actually going on. I identified it 100%
correctly. Unfortunately we have been educated to be morons. I dont
recommend you sending your children to school. I havent recommended
sending your children to school since the day I walked out of high school
at sixteen years of age and walked away from it, looked back and said,
they ought to burn those damned places. These schools are destroying the
minds of our peopleI saw it. Dont ask me why, dont ask me why at that young age I
was able to recognize that they were not leading us in the right direction, they were not teaching
us anything worthwhile but to get this point through to people they think I have five heads,
sixteen eyeballs or something. Im an alien, Im not normal, something wrong with me. Look at
where we are today. Pay attention and you will see that we dont have the competence within
ourselves as the society to recognize the wrongs that the public government is doing. Were
seeing that somethings wrong but were not seeing what. Well, maybe I and numerous ones like
Jail For Judges, that guy (Branson), Michael Anthony, numerous other researchers, Carl Miller,
the one that calls himself Constitution Man, these people are digging this stuff out. Theyre doing
a great job. Theyre bringing the information out.
Theyre spreading it around just as Ive tried to do, try to wake up the American people and
guide them and as one of those e-mails Dave was reading earlier said, this does not look right to
the normal people because it is not what theyre accustomed to, it is not what theyve been led to
believe and belief, belief is the biggest problem that most people have. {Sufficient unto the day
is the bullshit thereof.} There is no evidence to prove a belief that is presented to usno beliefs.
And Ive been telling people for years you should give up every belief you have except I believe
Ill have another drink while youre sitting in a bar. Go ahead and do that, relax and enjoy but
give up all the other beliefs and start looking for the truth because the truth lies in front of us
somewhere but its not easy to see and this is where us, being able to judge them and their work
fairly really falls short.

We cant judge them. We dont even know what theyre supposed to be doing. We dont
understand the concept of government, that its a trust, that were the beneficiaries. As a matter
of fact theres a whole lot of crap out here going around that were the trustees or we should be
the executor or the administrator of the estate. Were the beneficiary. The government is the
administrator, the executor, the trustee.
Those positions are all trustee positions under the laws of trust. Theyre the ones that are
supposed to be looking out for and taking care of us. Theyre not doing it. So, the court went on
to say, when public officials do not so conduct themselves and discharge their duties their
actions are inimical {adverse} to and inconsistent with the public interest. The public interest is
to maintain the flow of commerce, to keep people functioning and working and living
comfortably in this country. Theyre not doing it. Thats what the public interest is supposed to
be. The court went on to say, and not only are they individually deserving of censure and
reproach but their transactions which they have entered into are contrary to public policy.
Theyre illegal and should be set aside to the fullest extent possible consistent with protecting the
rights of innocent parties, us, the stupid people.
With education and no common sense, no knowledge thanks to education we are the innocent
people, the innocent party that is being abused by government personnel, particularly lawyers
and cops who are sent out there to abuse us because the lawyers tell them to do it, that theyre
not very bring people, most of them. They havent seen through all this. Anyway, following those
comments of the court again they list another roughly a dozen court cases and the court then
went on to say that these obligations of fiduciary duty are not mere theoretical concepts or
idealistic abstractions of no practical force and effect They are obligations imposed by the
common law on public officers and assumed by them as a matter of law upon their entering
public office. The enforcement of these obligations is essential to the soundness and efficiency of
our government. Yeah, it would be if anybody would do it. This case is early 1950s. I dont think
anything like this has been much since. I havent found very many newer cases. This stuff has
been forgotten, set aside, because lawyers arent going to do this to other lawyers. Lawyers are
not going to do this to their little flunkies that they send out here to abuse us. They only went
after Mayor Hague even back then because Mayor Hague extorted all this money from the
employees of Jersey City government and he didnt share it with the rest of the scum so they
went after him for it. If they share among one another they dont bother to prosecute one another.
They just keep working together to extort from us and share. The problem is up to us to
recognize it. Wait until I read the next part. You can almost feel the anger in these justices about
these people who work for Jersey City government from 1917 to 1949. Thats a lot of years and
nothing was done about this. Nobody spoke up. Nobody took any action to put a stop to it. This
court was really upset with these people and heres what they said. The enforcement of these
obligations is essential to the soundness of our government which exists for the benefit of the
people who are its sovereigns. See the Constitution of 1947, Article 1, Paragraph 2. Thats the
New Jersey Constitution. Then they said, the citizen is not at the mercy of his servants holding
positions of public trust nor is he helpless to secure relief from their machinationstheir wrong
doings in other words, thats what that meansexcept through the medium of the ballot, the
pressure of public opinion or criminal prosecutions. Were not going to get any one of those
things. The ballot is controlled. If you havent awakened and realized that its money. Whoevers
got the most money that puts out the biggest amount of bull crap for people to swallow that gets

elected. The pressure of public opinionhow can the public have any opinion when theyre
educated morons? They dont have an opinion. They dont know what the hell theyre talking
about. They dont know what theyre doing. So public opinion is not going to sway anything.
And as far as criminal prosecution goes youve heard me say numerous times that the whole law
enforcement system in this country is the dumbest bunch of two-legged animals walking the face
of the earth. Theyre useless to us. They dont do anything that is for our benefit. Everything they
do is for the benefit of the government and themselves to extort from us, our property, our labor,
our effort, our family, our children, everything theyve extorted from us. So, as far as criminal
prosecution goes the biggest criminals we have is the criminal justice system but there was a
period at the end of that statement and then the court said, he, meaning you and I, secure relief
in the civil courts either in an action brought in your own name, and then they quote a court
case, Reducing Corporation v. Unemployment Compensation Commission and thats 62
Atlantic Reporter, p. 473 and they quote another one, Weisen v. Atlantic City. These are all New
Jersey cases because this was a New Jersey case. Theyre just quoting ones that are in their area.
And that was 63 Atlantic Reporter, p. 255. Hanes v. Burlington County Bridge Commission and
that was 63 Atlantic Reporter 2d, p. 284 or through proceedings instituted on his behalf by the
governor. The governor is supposed to bring these claims against people that are under him that
breach their dutynow, well talk about that in a few minutes. Just hold that thought in mind
or by the attorney general. If you can get Now, the attorney general is part of law
enforcement. He is a worthless two-legged animal doing nothing for the good of the people but
hes there if you can get him to do something. Being a private attorney general and trying to
bring this criminally I think that over the years of our experience we have determined that that is
an absolute waste of time because theyre not going to allow you to proceed to bring criminal
charges in their courts against their people. So being a private attorney general is a waste of time
but you can do this with a civil action. Thats not being a private attorney general. Youre
showing where their conduct injured you in some way and its not hard to do. Weve discussed
this time and time again how it can be done. Their paperwork that theyve sent you is your
evidence of their wrong doing if youll just look up the statutes and the rules that theyre
supposed to be following. Theres a couple of little short explanations here of different that are
abuses of discretion by the courts, abuses by government officials. If he takes any gift, gratuity or
benefit of any kind in violation of his duty Now, benefit and violation of his duty fits a lot
more than just these little gifts and gratuities. Gifts and gratuities are bribes. Now, a lot of them
dont take bribesthey dont need totheyre stealing everything weve got and using the law
to do it. They are gaining a benefit by forcing you to register your property with government
when your property is your private property and government has no authority to do anything
about your private property. Now, thats where the benefit in violation of his duty comes in. Or
he acquires an interest that is adverse to his principalwhich is uswithout full disclosure.
Well, that goes back to things that Dave and I have talked about many times. It is a betrayal of
his trust and a breach of confidence and he must account to us, his principal, for all that he has
received. The disability of being in this position results not from the subject matter but from the
fiduciary character of the one against whom it is applied. Every government official has this
fiduciary duty or fiduciary capacity and the reason he does is because we, the people of America,
have put our confidence in these people who assume the position of government that they will
take care of us as beneficiaries, that they will look out for the best interest of the American
people, that they will follow what the preamble of the constitutions of the states and the
preamble of the Constitution of the United States set forth and that is that they will provide for a

common defense. Notice, it just said defense, it didnt say anything about being aggressors and
attacking other countries. That they will provide for the good and the welfare. The good and the
welfare means to maintain commerce. It doesnt mean to provide money for lazy people to go get
a check on Friday night because theyre too lazy to work. {the reason were slaves and stand for
nothinggimme my check}. Thats not what welfare meant. It meant commerce. It meant to
provide the needs and necessities of the people so that they were there and convenient for us, not
to abuse commerce by overtaxing it, by over-regulating it as they have been doing, not to create a
situation where they involved us in that commerce which they have done by this term that were
all residents of the state. The state is a government body. The only way to be a resident of the
state is to be an employee or officer of the state or one of its political subdivisions like the city,
the county or the town. Most people are not in that position. They are not residents. But it is
always claimed that you are a resident in order to gain an abusive unfair advantage of you. Well,
all this stuff that were talking about tonight ties right back in to the abuse that lawyers do under
Rule 11, that they bring these claims into court against the people like you and I and they dont
do them correctly. They abuse us and they can be set aside under Rule 11 if you can explain why
its an abuse, why they did it wrong. Why they did not follow the vein or intent of the law which
is very simple to do. Weve talked about this many times. All you have to do is look in the
beginning of the chapter to find out what that chapter that they charged you with some law out of
it means and what its for, what its purpose is and youll find out it doesnt normally apply to
most people, only specific people such as people who have asked the government for a particular
license or a permit to do something. If you didnt ask them for a permit to do something it
doesnt cover you. And they extend it to you anyhow as though it does because they consider us
all to be residents and under all those laws and rules that the state has the authority to make to
regulate itself. Well, itself does not include people who are not part of it but they extend it
beyond their limits and abuse their discretion and these are all breaches of their fiduciary duty. If
we dont start waking up and bringing these suits this whole system is going to collapse around
us including the banking system. There is going to be a financial disaster thatll result in battles
of all kinds and probably destruction of the government. And really, I rather not see this
government destroyed. The purpose of it and the intent of it was great. It shouldnt happen but
Im afraid its going to. I see no way to avoid it anymore, its too late. Thirty-three years of my
efforts to try to talk to judges and talk to politicians and try to get them to recognize what theyre
doing is wrong and talking to sheriffs, well, finally theres a couple of sheriffs starting to wake
up around the country but theyre the only ones and the courts are giving them a fit and theyre
not even really completely awake. They havent got half an idea of what theyre doinga little
bit but only at best halfprobably not quite that farbecause they dont recognize all this stuff
that were talking about. They have no idea of the fiduciary duty of government officials. That
needs to be brought to their attention. They need to be enlightened to this. I started out with the
intention a couple of weeks ago back in the beginning of April of going to a sheriffs meeting
here and something happened that disrupted my day and I never did get over there to that
meeting. I was going to talk with two or three of the sheriffs that were there at that meeting and
just introduce this stuff to them. It didnt happen and I got to wonder why did nature prevent me
from getting there. Was I going to get a cold shoulder? Were they going to ignore me? Was it a
waste of my time? Maybe it would have beenI don know. I have a feeling that this thing is
going to end up in horrendous violence as is biblically predicted to happenhorrendous
violence. Blood will flow curb deep in the cities it says. Thats a lot of blood, thats a lot of dead
bodies lying around bleeding. This is going to be a mess all because nobody seems to want to

apply the mind, pay attention to whats supposed to be and stand up and do something about it.
Now, I grant you these courts dont want to pay attention but Ill tell you about this breach of
fiduciary duty. There is not a judge anywhere sitting on any bench that is so completely stupid
that he wont realize that if you knew how to bring this properly against a lawyer or a cop that he
would dare to breach his duty in front of you, that he would dare to go against you and try to
protect the lawyer, the system or the cop because he would know that if you recognized what the
cop did wrong, the lawyer did wrong that you would recognize what he did wrong and the next
suit would be against him and it would be if you know what youre doing, if you spent a little bit
of time studying this stuff. All government officials are in a trust position whether theyre
contract agents or if they are actual agents of the government corporations. The contract agents
are these private corporations that Rod Class has finally discovered. Now, again, I dont mean to
toot our horn but TOOT, TOOT again. Back in the 1990s we came upon some information put
out by the great and fabulous sex monger, President of the United States, Mr. Bill Clinton. He
might not have been a real straight forward decent person in life but he had some integrity about
him and he released information that probably if Barack Obama did this today theyd probably
execute him right there in office things have gotten that far out of hand and that bad. But Clinton
put out all kinds of information about privatizing government, creating private corporations to do
all the work of government so that government no longer had to assume the responsibilities of
government. Thats evil and yet its good. It was good that he put it out because that made it
available that government mostly was operated by private corporate institutions and not any
longer by government. And he was recommending that the states that had not gone to complete
privatization do so just as the federal government had already done. Well, thats all well and good
that we now know that these are private corporations. But we also know from the US Supreme
Court decision in Federal Crop Insurance Corporation v. Morell that is does not matter whether
the person is an agent of an actual governmental body or if he is part of a private corporation
conducting government business under contract that all these people are bound to stay within the
limits of their authority, that they cannot go beyond the authority that the Constitution set
government up to have and government functions had to be done under those limitations. So it
doesnt matter that theyre private corporations, theyre still liable if they breach their fiduciary
duty, if they go beyond the limit of their authority, especially if they use their authority as Mayor
Hague did to abuse and extort from the people as is being done. Traffic violations on a private
automobile are an abuse of their authority. On a commercial vehicle such as motor vehicles,
those used to motor passengers or goods for hire their laws apply for your private automobile,
your private pickup truck these laws are not intended to apply but theyre being applied which is
an abuse of the discretion of the cop, the lawyer who prosecutes it, the judge who allows it, right
up the line of law enforcement. You see what I mean about them being the most useless twolegged animals on the face of the earth? They are useless to us. Of course to one another theyre
great because theyre all experiencing the benefits of the thievery, the extortion of the Americans
property and wealth. Theyre getting a benefit. To them every one of them are great, theyre
wonderful people. To us theyre useless. Theyre not there to enforce the law to protect us as they
are supposed to. They are there enforcing these rules and regulations that dont apply to us in
order to extort us. This will end and Im sure because nothing is being done to stop this through
the courts by the people. They are not standing up. Theyre not speaking out. This has been going
on for as many years or more years than what this extortion of Mayor Hague went on from 1917
to 1949. This kind of stuff is continuing to go on. The 1913 Federal Reserve Act should have
been stopped by somebody immediately because it was an unlawful delegation of the authority

of Congress to a private agency to do the work for them. Nobody stopped it. Ive been talking
about this since we discovered this back in 1987. We heard about the Graham-Rudman Act case
being shot down by the courts because they could not delegate their constitutionally mandated
authorities to somebody else. Ive been talking about this bidding the Federal Reserve Bank
System around the country to groups of people for years and I have been unable to get anybody
to pose a lawsuit. You will not do this by yourself. You need to get several different groups of
people in several different areas to bring this suit. They cant kill everybody thats involved in
something like this if you can get a bunch of people together. But one person brings like
something like this theyll kill this person. Theyll get rid of him. They wont let it fly but they
cant stop it if enough people got together and did it. I could not get enough people together to do
it. This one of the reasons why Im sure that this mess is going to end up in terrible bloodshed
and violence because governments not going to stop. Theyre going to keep forcing it down the
throats of the people until the people have had enough and the people turn on them and thats not
far in front of us because the things that are going on financially are really going to really upset
the apple cart and bring peoples anger to a peak and government when it really gets into
financial straights is going to become even more oppressive than it is today and its become
terribly oppressive in the recent years because it needs money to keep itself going so bad theyll
steal anything, theyll ignore their own rules, their own laws and do anything that they have to do
to get money out of the people. 02:26:03.768
.
.
.
02:44:53.418
[Howard]
A person applying for a license has to fill in the application of the license, not you
when you are the one giving it to them to apply to you for a license to use your private property
they fill it in, not you. That document does not get filled in by you other than your name on the
second page. Theres a place for it to be returned to you. Your name goes there, thats all. The
rest of the document is to be filled in by them. They are applying to you for a license from you to
use your private property. Its amazing what education has done to our people.
{Dave]
The one you want is the Notice of Acceptance of Constitutions, state and federal
constitutions, oath of office and licensing offer. The licensing offer is the third part of that
package. You get all three documents in one package but the licensing offer which is an offer to
government to license government to use your private property or continue to use your private
property and once you serve that offer if they do ahead and continue to use your property like
send you a tax bill or something that is evidence of their acceptance and a contract has arisen by
them doing it after youve sent them the offer. Theyve accepted the contract by sending you the
tax bill. Now under the contract you can send them the assessment called for by the licensing
offer, $100,000 for the use of your name, $250,000 for the use of your car, a million dollars per
year for use of you land. Theres a whole chart of different amounts of money for different
private properties that theyre using and once youve served that offer if they do it theyve been
served the notice. Then the fact that they do it after receiving that offer is the acceptance of the
offer and a contract arises. That law you can enforce collection.

[Howard]
Thats where the problem comes in. If they dont even know how its supposed to
work and theyre trying to figure out how to fill it out when its not even for them to fill out, how
do you expect them to go to the court rules and look up how to go into a collection process?
They wont. Its almost worthless to give this stuff out, Dave. The American people are just a
total loss. We cannot create an instruction sheet for how to do the collection because every state
has its own little set of rules and you got to look up the rules for your state courts to go into
court.
https://docs.google.com/document/d/1kYO6Xaddf9JXj7-TsPI-iRKCZprvP_hh5OIxy07yCo/edit

http://www.afn.org/~govern/mcfaddengif2.html

http://www.afn.org/~govern/mcfaddengif.html

Louis T. McFadden's Speech

In the House of Representatives
10 June 1932
It is well enough that the people of the nation do not understand our banking and monetary
system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry
Ford
Mr. Chairman, at the present session of Congress we have been dealing with emergency
situations. We have been dealing with the effect of things rather than with the cause of things. In
this particular discussion I shall deal with some of the causes that lead up to these proposals.
There are underlying principles which are responsible for conditions such as we have at the
present time and I shall deal with one of these in particular which is tremendously important in
the consideration that you are now giving to this bill.
Mr. Chairman, we have in this country one of the most corrupt institutions the world has
ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. The Federal
Reserve Board, a Government board, has cheated the Government of the United States and the
people of the United States out of enough money to pay the national debt. The depredations and
iniquities of the Federal Reserve Board has cost this country enough money to pay the national
debt several times over. This evil institution has impoverished and ruined the people of the
United States, has bankrupted itself, and has practically bankrupted our Government. It has done
this through the defects of the law under which it operates, through the maladministration of that
law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures
who control it.
Some people think the Federal Reserve banks are United States Government institutions.
They are not Government institutions. They are private credit monopolies which prey upon the
people of the United States for the benefit of themselves and their foreign customers; foreign and
domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of
financial pirates there are those who would cut a man's throat to get a dollar out of his pocket;
there are those who send money into States to buy votes to control our legislation; and there are
those who maintain international propaganda for the purpose of deceiving us and of wheedling
us into the granting of new concessions which will permit them to cover up their past misdeeds
and set again in motion their gigantic train of crime.
These twelve private credit monopolies were deceitfully and disloyally foisted upon this
country by the bankers who came here from Europe and repaid us for our hospitality by
undermining our American institutions. Those bankers took money out of this country to finance
Japan in a war against Russia. They created a reign of terror in Russia with our money in order to
help that war along. They instigated the separate peace between Germany and Russia and thus
drove a wedge between the Allies in the World War. They financed Trotsky's passage from New
York to Russia so that he might assist in the destruction of the Russian Empire. They fomented
and instigated the Russian revolution and they placed a large fund of American dollars at
Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes
might be thoroughly broken up and Russian children flung far and wide from their natural
protectors. They have since begun the breaking up of American homes and the dispersal of
American children.

It has been said that President Wilson was deceived by the attentions of these bankers and
by the philanthropic poses they assumed. It has been said that when he discovered the manner in
which he had been misled by Colonel House, he turned against that busybody, that "holy monk"
of the financial empire, and showed him the door. He had the grace to do that, and in my opinion
he deserves great credit for it.
President Wilson died a victim of deception. When he came to the Presidency, he had
certain qualities of mind and heart which entitled him to a high place in the councils of this
Nation; but there was one thing he was not and which he never aspired to be; he was not a
banker. He said that he knew very little about banking. It was, therefore, on the advice of others
that the iniquitous Federal Reserve act, the death warrant of American liberty, became law in his
administration.
Mr. Chairman, there should be no partisanship in matters concerning the banking and
currency affairs of this country, and I do not speak with any.
In 1912 the National Monetary Association, under the chairmanship of the late Senator
Nelson W. Aldrich, made a report and presented a vicious bill called the National Reserve
Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write
the Aldrich bill. He was the tool, but not the accomplice, of the European-born bankers who for
nearly twenty years had been scheming to set up a central bank in this country and who in 1912
had spent and were continuing to spend vast sums of money to accomplish their purpose.
The Aldrich bill was condemned in the platform upon which Theodore Roosevelt was
nominated in the year 1912, and in that same year, when Woodrow Wilson was nominated, the
Democratic platform, as adopted at the Baltimore convention, expressly stated: "We are opposed
to the Aldrich plan for a central bank." This was plain language. The men who ruled the
Democratic Party then promised the people that if they were returned to power there would be no
central bank established here while they held the reigns of government. Thirteen months later
that promise was broken, and the Wilson administration, under the tutelage of those sinister Wall
Street figures who stood behind Colonel House, established here in our free country the wormeaten monarchical institution of the "king's bank" to control us from the top downward, and to
shackle us from the cradle to the grave. The Federal Reserve act destroyed our old and
characteristic way of doing business; it discriminated against our one-name commercial paper,
the finest in the world; it set up the antiquated two-name paper, which is the present curse of this
country, and which wrecked every country which has ever given it scope; it fastened down upon
this country the very tyranny from which the framers of the Constitution sought to save us.
One of the greatest battles for the preservation of this Republic was fought out here in
Jackson's day, when the Second Bank of the United States, which was founded upon the same
false principles as those which are here exemplified in the Federal Reserve act, was hurled out of
existence. After the downfall of the Second Bank of the United States in 1837, the country was
warned against the dangers that might ensue if the predatory interests, after being cast out,
should come back in disguise and unite themselves to the Executive, and through him acquire
control of the Government. That is what the predatory interests did when they came back in the
livery of hypocrisy and under false pretenses obtained the passage of the Federal Reserve act.
The danger that the country was warned against came upon us and is shown in the long
train of horrors attendant upon the affairs of the traitorous and dishonest Federal Reserve Board
and the Federal Reserve banks are fully liable. This is an era of financed crime and in the
financing of crime, the Federal Reserve Board does not play the part of a disinterested spectator.
It has been said that the draughtsman who was employed to write the text of the Federal

Reserve bill used a text of the Aldrich bill for his purpose. It has been said that the language of
the Aldrich bill was used because the Aldrich bill had been drawn up by expert lawyers and
seemed to be appropriate. It was indeed drawn up by lawyers. The Aldrich bill was created by
acceptance bankers of European origin in New York City. It was a copy and in general a
translation of the statutes of the Reichsbank and other European central banks.
Half a million dollars was spent one part of the propaganda organized by those same
European bankers for the purpose of misleading public opinion in regard to it, and for the
purpose of giving Congress the impression that there was an overwhelming popular demand for
that kind of banking legislation and the kind of currency that goes with it, namely, an asset
currency based on human debts and obligations instead of an honest currency based on gold and
silver values. Dr. H. Parker Willis had been employed by the Wall Street bankers and
propagandists and when the Aldrich measure came to naught and he obtained employment with
Carter Glass to assist in drawing a banking bill for the Wilson administration, he appropriated the
text of the Aldrich bill for his purpose. There is no secret about it. The text of the Federal
Reserve act was tainted from the beginning.
Not all of the Democratic Members of the Sixty-third Congress voted for this great
deception. Some of them remembered the teachings of Jefferson; and, through the years, there
had been no criticisms of the Federal Reserve Board and the Federal Reserve banks so honest, so
out-spoken, and so unsparingly as those which have been voiced here by Democrats. Again,
although a number of Republicans voted for the Federal Reserve act, the wisest and most
conservative members of the Republican Party would have nothing to do with it and voted
against it. A few days before the bill came to a vote, Senator Henry Cabot Lodge, of
Massachusetts, wrote to Senator John W. Weeks as follows:
New York City, December 17, 1913
My Dear Senator Weeks:
Throughout my public life I have supported all measures designed
to take the Government out of the banking business.... This bill
puts the Government into the banking business as never before in
our history and makes, as I understand it, all notes Government
notes when they should be bank notes.
The powers vested in the Federal Reserve Board seem to
me highly dangerous, especially where there is political control
of the Board. I should be sorry to hold stock in a bank subject
to such domination. The bill as it stands seems to me to open the
way to a vast inflation of the currency. There is no necessity of
dwelling upon this point after the remarkable and most powerful
argument of the senior Senator from New York. I can be content
here to follow the example of the English candidate for
Parliament who thought it enough "to say ditto to Mr. Burke." I
will merely add that I do not like to think that any law can be
passed which will make it possible to submerge the gold standard
in a flood of irredeemable paper currency.
I had hoped to support this bill, but I can not vote for
it as it stands, because it seems to me to contain features and
to rest upon principles in the highest degree menacing to our

prosperity, to stability in business, and to the general welfare

of the people of the United States.
Very sincerely yours,
Henry Cabot Lodge
In eighteen years that have passed since Senator Lodge wrote that letter of warning all of his
predictions have come true. The Government is in the banking business as never before. Against
its will it has been made the backer of horsethieves and card sharps, bootleggers, smugglers,
speculators, and swindlers in all parts of the world. Through the Federal Reserve Board and the
Federal Reserve banks the riffraff of every country is operating on the public credit of this
United States Government. Meanwhile, and on account of it, we ourselves are in the midst of the
greatest depression we have ever known. Thus the menace to our prosperity, so feared by Senator
Lodge, has indeed struck home. From the Atlantic to the Pacific our country has been ravaged
and laid waste by the evil practices of the Federal Reserve Board and the Federal Reserve banks
and the interests which control them. At no time in our history has the general welfare of the
people of the United States been at a lower level or the mind of the people so filled with despair.
Recently in one of our States 60,000 dwelling houses and farms were brought under the
hammer in a single day. According to the Rev. Father Charles E. Coughlin, who has lately
testified before a committee of this House, 71,000 houses and farms in Oakland County,
Michigan, have been sold and their erstwhile owners dispossessed. Similar occurrences have
probably taken place in every county in the United States. The people who have thus been driven
out are the wastage of the Federal Reserve act. They are the victims of the dishonest and
unscrupulous Federal Reserve Board and Federal Reserve banks. Their children are the new
slaves of the auction blocks in the revival here of the institution of human slavery.
In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made
the following statement:
But the whole scheme of the Federal Reserve bank with its
commercial-paper basis is an impractical, cumbersome machinery,
is simply a cover, to find a way to secure the privilege of
issuing money and to evade payment of as much tax upon
circulation as possible, and then control the issue and maintain,
instead of reduce, interest rates. It is a system that, if
inaugurated, will prove to the advantage of the few and the
detriment of the people of the United States. It will mean
continued shortage of actual money and further extension of
credits; for when there is a lack of real money people have to
borrow credit to their cost.
A few days before the Federal Reserve act was passed Senator Elihu Root denounced the Federal
Reserve bill as an outrage on our liberties and made the following prediction: "Long before we
wake up from our dreams of prosperity through an inflated currency, our gold, which alone could
have kept us from catastrophe, will have vanished and no rate of interest will tempt it to return."
If ever a prophecy came true, that one did. It was impossible, however, for those luminous
and instructed thinkers to control the course of events. On December 23, 1913, the Federal
Reserve bill became law, and that night Colonel House wrote to his hidden master in Wall Street
as follows:

I want to say a word of appreciation to you for the silent but no

doubt effective work you have done in the interest of currency
legislation and to congratulate you that the measure has finally
been enacted into law. We all know that an entirely perfect bill,
satisfactory to everybody, would have been an impossibility, and
I feel quite certain that unless the President had stood as firm
as he did we should likely have had no legislation at all. The
bill is a good one in many respects; anyhow good enough to start
with and to let experience teach us in what direction it needs
perfection, which in due time we shall then get. In any event you
have personally good reason to feel gratified with what has been
accomplished.
The words "unless the President had stood as firm as he did we should likely have had no
legislation at all," were a gentle reminder that it was Colonel House himself, the "holy monk,"
who had kept the President firm.
The foregoing letter affords striking evidence of the manner in which the predatory
interests then sought to control the Government of the United States by surrounding the
Executive with the personality and the influence of a financial Judas. Left to itself and to the
conduct of its own legislative functions without pressure from the Executive, the Congress would
not have passed the Federal Reserve act. According to Colonel House, and since this was his
report to his master, we may believe it to be true, the Federal Reserve act was passed because
Wilson stood firm; in other words because Wilson was under the guidance and control of the
most ferocious usurers in New York through their hireling, House. The Federal Reserve act
became law the day before Christmas Eve in the year 1913, and shortly afterwards the German
international bankers, Kuhn, Loeb and Co., sent one of their partners here to run it.
In 1913, when the Federal Reserve bill was submitted to the Democratic caucus, there was
a discussion in regard to the form the proposed paper currency should take. The proponents of
the Federal Reserve act, in their determination to create a new kind of paper money, had not
needed to go outside of the Aldrich bill for a model. By the terms of the Aldrich bill, bank notes
were to be issued by the National Reserve Association and were to be secured partly by gold or
lawful money and partly by circulating evidences of debt. The first draft of the Federal Reserve
bill presented the same general plan, that is, for bank notes as opposed to Government notes, but
with certain differences of regulation.
When the provision for the issuance of Federal Reserve notes was placed before President
Wilson he approved of it, but other Democrats were more mindful of Democratic principles and
a great protest greeted the plan. Foremost amongst those who denounced it was William Jennings
Bryan, the Secretary of State. Bryan wished to have the Federal Reserve notes issued as
Government obligations. President Wilson had an interview with him and found him adamant. At
the conclusion of the interview Bryan left with the understanding that he would resign if the
notes were made bank notes. The President then sent for his Secretary and explained the matter
to him. Mr. Tumulty went to see Bryan and Bryan took from his library shelves a book
containing all the Democratic platforms and read extracts from them bearing on the matter of the
public currency. Returning to the President, Mr. Tumulty told him what had happened and
ventured the opinion that Mr. Bryan was right and that Mr. Wilson was wrong. The President
then asked Mr. Tumulty to show him where the Democratic Party in its national platforms had
ever taken the view indicated by Bryan. Mr. Tumulty gave him the book, which he had brought
from Bryan's house, and the President read very carefully plank after plank on the currency. He

then said, "I am convinced there is a great deal in what Mr. Bryan says," and thereupon it was
arranged that Mr. Tumulty should see the proponents of the Federal Reserve bill in an effort to
bring about an adjustment of the matter.
The remainder of this story may be told in the words of Senator Glass. Concerning Bryan's
opposition to the plan of allowing the proposed Federal Reserve notes to take the form of bank
notes and the manner in which President Wilson and the proponents of the Federal Reserve bill
yielded to Bryan in return for his support of the measure, Senator Glass makes the following
statement:
The only other feature of the currency bill around which a
conflict raged at this time was the note-issue provision. Long
before I knew it, the President was desperately worried over it.
His economic good sense told him the notes should be issued by
the banks and not by the Government; but some of his advisers
told him Mr. Bryan could not be induced to give his support to
any bill that did not provide for a "Government note." There was
in the Senate and House a large Bryan following which, united
with a naturally adversary party vote, could prevent legislation.
Certain overconfident gentlemen proffered their services in the
task of "managing Bryan." They did not budge him.... When a
decision could no longer be postponed the President summoned me
to the White House to say he wanted Federal Reserve notes to "be
obligations of the United States." I was for an instant
speechless. With all the earnestness of my being I remonstrated,
pointing out the unscientific nature of such a thing, as well as
the evident inconsistency of it.
"There is not, in truth, any Government obligation here,
Mr. President," I exclaimed. "It would be a pretense on its face.
Was there ever a Government note based primarily on the property
of banking institutions? Was there ever a Government issue not
one dollar of which could be put out except by demand of a bank?
The suggested Government obligation is so remote it could never
be discerned," I concluded, out of breath.
"Exactly so, Glass," earnestly said the President.
"Every word you say is true; the Government liability is a mere
thought. And so, if we can hold to the substance of the thing and
give the other fellow the shadow, why not do it, if thereby we
may save our bill?"
Shadow and substance! One can see from this how little President Wilson knew about banking.
Unknowingly, he gave the substance to the international banker and the shadow to the common
man. Thus was Bryan circumvented in his efforts to uphold the Democratic doctrine of the rights
of the people. Thus the "unscientific blur" upon the bill was perpetrated. The "unscientific blur,"
however, was not the fact that the United States Government, by the terms of Bryan's edict, was
obliged to assume as an obligation whatever currency was issued. Mr. Bryan was right when he
insisted that the United States should preserve its sovereignty over the public currency. The
"unscientific blur" was the nature of the currency itself, a nature which makes it unfit to be
assumed as an obligation of the United States Government. It is the worst currency and the most
dangerous this country has ever known. When the proponents of the act saw that the Democratic

doctrine would not permit them to let the proposed banks issue the new currency as bank notes,
they should have stopped at that. They should not have foisted that kind of currency, namely, an
asset currency, on the United States Government. They should not have made the Government
liable on the private debts of individuals and corporations and, least of all, on the private debts of
foreigners.
The Federal Reserve note is essentially unsound. As Kemmerer says: "The Federal Reserve
notes, therefore, in form have some of the qualities of Government paper money, but, in
substance, are almost a pure asset currency possessing a Government guaranty against which
contingency the Government has made no provision whatever." Hon. E.J. Hill, a former Member
of the House, said, and truly: "They are obligations of the Government for which the United
States has received nothing and for the payment of which at any time it assumes the
responsibility looking to the Federal Reserve to recoup itself."
If the United States Government is to redeem the Federal Reserve notes when the general
public finds out what it costs to deliver this flood of paper money to the twelve Federal Reserve
banks, and if the Government has made no provision for redeeming them, the first element of
unsoundness is not far to seek.
Before the Banking and Currency Committee, when the Federal Reserve bill was under
discussion, Mr. Crozier, of Cincinnati, said:
In other words, the imperial power of elasticity of the public
currency is wielded exclusively by these central corporations
owned by the banks. This is a life and death power over all local
banks and all business. It can be used to create or destroy
prosperity, to ward off or cause stringencies and panics. By
making money artificially scarce, interest rates throughout the
country can be arbitrarily raised and the bank tax on all
business and cost of living increased for the profit of the banks
owning these regional central banks, and without the slightest
benefit to the people. These twelve corporations together cover
the whole country and monopolize and use for private gain every
dollar of the public currency and all public revenue of the
United States. Not a dollar can be put into circulation among the
people by their Government without the consent of and on terms
fixed by these twelve private money trusts.
In defiance of this and all other warnings, the proponents of the Federal Reserve act created the
twelve private credit corporations and gave them an absolute monopoly of the currency of the
United States, not of the Federal Reserve notes alone, but of all the currency, the Federal Reserve
act providing ways by means of which the gold and general currency in the hands of the
American people could be obtained by the Federal Reserve banks in exchange for Federal
Reserve notes, which are not money, but merely promises to pay money. Since the evil day when
this was done the initial monopoly has been extended by vicious amendments to the Federal
Reserve act and by the unlawful and treasonable practices of the Federal Reserve Board and the
Federal Reserve banks.
Mr. Chairman, when a Chinese merchant sells human hair to a Paris wigmaker and bills
him in dollars, the Federal Reserve banks can buy his bill against the wigmaker and then use that
bill as collateral for the Federal Reserve notes. The United States Government thus pays the
Chinese merchant the debt of the wigmaker and gets nothing in return except a shady title to the
Chinese hair.

Mr. Chairman, if a Scottish distiller wishes to send a cargo of Scotch whiskey to the United
States, he can draw his bill against the purchasing bootlegger in dollars; and after the bootlegger
has accepted it by writing his name across the face of it, the Scotch distiller can send that bill to
the nefarious open discount market in New York City, where the Federal Reserve Board and the
Federal Reserve banks will buy it and use it as collateral for a new issue of Federal Reserve
notes. Thus the Government of the United States pays the Scotch distiller for the whiskey before
it is shipped; and if it is lost on the way, or if the Coast Guard seizes it and destroys it, the
Federal Reserve banks simply write off the loss and the Government never recovers the money
that was paid to the Scotch distiller. While we are attempting to enforce prohibition here, the
Federal Reserve Board and the Federal Reserve banks are financing the distillery business in
Europe and paying bootleggers' bills with the public credit of the United States Government.
Mr. Chairman, if a German brewer ships beer to this country or anywhere else in the world
and draws his bill for it in dollars, the Federal Reserve banks will buy that bill and use it as
collateral for Federal Reserve notes. Thus, they compel our Government to pay the German
brewer for his beer. Why should the Federal Reserve Board and the Federal Reserve banks be
permitted to finance the brewing industry in Germany, either in this way or as they do by
compelling small and fearful United States banks to take stock in the Isenbeck brewery and in
the German bank for brewing industries?
Mr. Chairman, if Dynamit Nobel of Germany wishes to sell dynamite to Japan to use in
Manchuria or elsewhere, it can draw its bill against the Japanese customers in dollars and send
that bill to the nefarious open discount market in New York City, where the Federal Reserve
Board and Federal Reserve banks will buy it and use it as collateral for a new issue of Federal
Reserve notes, while at the same time the Federal Reserve Board will be helping Dynamit Nobel
by stuffing its stock into the United States banking system. Why should we send our
representatives to the disarmament conference at Geneva while the Federal Reserve Board and
the Federal Reserve banks are making our Government pay Japanese debts to German munition
makers?
Mr. Chairman, if a bean grower of Chile wishes to raise a crop of beans and sell them to a
Japanese customer, he can draw a bill against his prospective Japanese customer in dollars and
have it purchased by the Federal Reserve Board and Federal Reserve banks and get the money
out of this country at the expense of the American people before he has even planted the beans in
the ground.
Mr. Chairman, if a German in Germany wishes to export goods to South America or
anywhere else, he can draw his bill against his customer and send it to the United States and get
the money out of this country before he ships or even manufactures the goods.
Mr. Chairman, why should the currency of the United States be issued on the strength of
Chinese human hair? Why should it be issued on the trade whims of a wigmaker? Why should it
be issued on the strength of German beer? Why should it be issued on the crop of unplanted
beans to be grown in Chile for Japanese consumption? Why should the Government of the
United States be compelled to issue many billions of dollars every year to pay the debts of one
foreigner to another foreigner? Was it for this that our national-bank depositors had their money
taken out of our banks and shipped abroad? Was it for this that they had to lose it? Why should
the public credit of the United States Government and likewise money belonging to our nationalbank depositors be used to support foreign brewers, narcotic drug vendors, whiskey distillers,
wigmakers, human-hair merchants, Chilean bean growers, and the like? Why should our
national-bank depositors and our Government be forced to finance the munition factories of

Germany and Soviet Russia?

Mr. Chairman, if a German in Germany, wishes to sell wheelbarrows to another German,
he can draw a bill in dollars and get the money out of the Federal Reserve banks before an
American farmer could explain his request for a loan to move his crop to market. In Germany,
when credit instruments are being given, the creditors say, "See you, it must be of a kind that I
can cash at the reserve." Other foreigners feel the same way. The reserve to which these gentry
refer is our reserve, which, as you know, is entirely made up of money belonging to American
bank depositors. I think foreigners should cash their own trade paper and not send it over here to
bankers who use it to fish cash out of the pockets of the American people.
Mr. Chairman, there is nothing like the Federal Reserve pool of confiscated bank deposits
in the world. It is a public trough of American wealth in which foreigners claim rights equal to or
greater than those of Americans. The Federal Reserve banks are agents of the foreign central
banks. They use our bank depositors' money for the benefit of their foreign principals. They
barter the public credit of the United States Government and hire it out to foreigners at a profit to
themselves.
All this is done at the expense of the United States Government, and at a sickening loss to
the American people. Only our great wealth enabled us to stand the drain of it as long as we did.
I believe that the nations of the world would have settled down after the World War more
peacefully if we had not had this standing temptation here -- this pool of our bank depositors'
money given to private interests and used by them in connection with illimitable drafts upon the
public credit of the United States Government. The Federal Reserve Board invited the world to
come in and to carry away cash, credit, goods, and everything else of value that was movable.
Values amounting to many billions of dollars have been taken out of this country by the Federal
Reserve Board and the Federal Reserve banks for the benefit of their foreign principals. The
United States has been ransacked and pillaged. Our structures have been gutted and only the
walls are left standing. While this crime was being perpetrated everything the world could rake
up to sell us was brought in here at our own expense by the Federal Reserve Board and the
Federal Reserve banks until our markets were swamped with unneeded and unwanted imported
goods priced far above their value and made to equal the dollar volume of our honest exports and
to kill or reduce our favorable balance of trade. As agents of the foreign central banks, the
Federal Reserve Board and the Federal Reserve banks try by every means within their power to
reduce our favorable balance of trade. They act for their foreign principals and they accept fees
from foreigners for acting against the best interests of the United States. Naturally there has been
great competition among foreigners for the favors of the Federal Reserve Board.
What we need to do is to send the reserves of our national banks home to the people who
earned and produced them and who still own them and to the banks which were compelled to
surrender them to predatory interests. We need to destroy the Federal Reserve pool, wherein our
national-bank reserves are impounded for the benefit of the foreigners. We need to make it very
difficult for outlanders to draw money away from us. We need to save America for Americans.
Mr. Chairman, when you hold a $10 Federal Reserve note in your hand you are holding a
piece of paper which sooner or later is going to cost the United States Government $10 in gold,
unless the Government is obliged to give up the gold standard. It is protected by a reserve of 40
per cent. or $4 in gold. It is based on Limburger cheese, reputed to be in foreign warehouses; or
on cans purported to contain peas but which may contain salt water instead; or on horse meat;
illicit drugs; bootleggers' fancies; rags and bones from Soviet Russia of which the United States
imported over a million dollars' worth last year; on wines, whiskey, natural gas, on goat or dog

fur, garlic on the string, or Bombay ducks. If you like to have paper money which is secured by
such commodities, you have it in the Federal Reserve note. If you desire to obtain the thing of
value upon which this paper currency is based -- that is, the Limburger cheese, the whiskey, the
illicit drugs, or any of the other staples -- you will have a very hard time finding them. Many of
these worshipful commodities are in foreign countries. Are you going to Germany to inspect her
warehouses to see if the specified things of value are there? I think not. And what is more, I do
not think you would find them there if you did go.
Immense sums belonging to our national-bank depositors have been given to Germany on
no collateral security whatever. The Federal Reserve Board and the Federal Reserve banks have
issued United States currency on mere finance drafts drawn by Germans. Billions upon billions
of our money has been pumped into Germany and money is still being pumped into Germany by
the Federal Reserve Board and the Federal Reserve banks. Her worthless paper is still being
negotiated here and renewed here on the public credit of the United States Government and at the
expense of the American people. On April 27, 1932, the Federal Reserve outfit sent $750,000,
belonging to American bank depositors, in gold to Germany. A week later, another $300,000 in
gold was shipped to Germany in the same way. About the middle of May $12,000,000 in gold
was shipped to Germany by the Federal Reserve Board and the Federal Reserve banks. Almost
every week there is a shipment of gold to Germany. These shipments are not made for profit on
the exchange since the German marks are below parity with the dollar.
Mr. Chairman, I believe that the national-bank depositors of the United States are entitled
to know what the Federal Reserve Board and the Federal Reserve banks are doing with their
money. There are millions of national-bank depositors in this country who do not know that a
percentage of every dollar they deposit in a member bank of the Federal Reserve system goes
automatically to American agents of the foreign banks and that all their deposits can be paid
away to foreigners without their knowledge or consent by the crooked machinery of the Federal
Reserve act and the questionable practices of the Federal Reserve Board and the Federal Reserve
banks. Mr. Chairman, the American people should be told the truth by their servants in office.
In 1930 we had over half a billion dollars outstanding daily to finance foreign goods stored
in or shipped between countries. In its yearly total, this item amounts to several billion dollars.
What goods are those on which the Federal Reserve banks yearly pledge several billions of
dollars of the public credit of the United States? What goods are those which are hidden in
European and Asiatic storehouses and which have never been seen by any officer of this
Government, but which are being financed on the public credit of the United States Government?
What goods are those upon which the United States Government is being obligated by the
Federal Reserve banks to issue Federal Reserve notes to the extent of several billions of dollars a
year?
The Federal Reserve Board and the Federal Reserve banks have been international bankers
from the beginning, with the United States Government as their enforced banker and supplier of
currency. But it is none the less extraordinary to see those twelve private credit monopolies
buying the debts of foreigners against foreigners in all parts of the world and asking the
Government of the United States for new issues of Federal Reserve notes in exchange for them.
I see no reason why the American taxpayers should be hewers of wood and drawers of
water for the European and Asiatic customers of the Federal Reserve banks. I see no reason why
a worthless acceptance drawn by a foreign swindler as a means of getting gold out of this
country should receive the lowest and choicest rate from the Federal Reserve Board and be
treated as better security than the note of an American farmer living on American land.

The magnitude of the acceptance racket, as it has been developed by the Federal Reserve
banks, their foreign correspondents, and the predatory European-born bankers who set up the
Federal Reserve institution here and taught our own brand of pirates how to loot the people -- I
say the magnitude of this racket is estimated to be in the neighborhood of $9,000,000,000 a year.
In the past ten years it is said to have amounted to $90,000,000,000. In my opinion, it has
amounted to several times as much. Coupled with this you have, to the extent of billions of
dollars, the gambling in the United States securities, which takes place in the same open discount
market -- a gambling upon which the Federal Reserve Board is now spending $100,000,000 per
week.
Federal Reserve notes are taken from the United States Government in unlimited quantities.
Is it strange that the burden of supplying these immense sums of money to the gambling
fraternity has at last proved too heavy for the American people to endure? Would it not be a
national calamity if the Federal Reserve Board and the Federal Reserve banks should again bind
this burden down on the backs of the American people and, by means of the long rawhide whips
of the credit masters, compel them to enter another seventeen years of slavery? They are trying to
do that now. They are taking $100,000,000 of the public credit of the United States Government
every week in addition to all their other seizures, and they are spending that money in the
nefarious open market in New York City in a desperate gamble to reestablish their graft as a
going concern.
They are putting the United States Government in debt to the extent of $100,000,000 a
week, and with the money they are buying up our Government securities for themselves and their
foreign principals. Our people are disgusted with the experiments of the Federal Reserve Board.
The Federal Reserve Board is not producing a loaf of bread, a yard of cloth, a bushel of corn, or
a pile of cordwood by its check-kiting operations in the money market.
A fortnight or so ago great aid and comfort was given to Japan by the firm of A. Gerli &
Sons, of New York, an importing firm, which bought $16,000,000 worth of raw silk from the
Japanese Government. Federal Reserve notes will be issued to pay that amount to the Japanese
Government, and these notes will be secured by money belonging to our national-bank
depositors.
Why should United States currency be issued on this debt? Why should United States
currency be issued to pay the debt of Gerli & Sons to the Japanese Government? The Federal
Reserve Board and the Federal Reserve banks think more of the silkworms of Japan than they do
of American citizens. We do not need $16,000,000 work of silk in this country at the present
time, not even to furnish work to dyers and finishers. We need to wear home-grown and
American-made clothes and to use our own money for our own goods and staples. We could
spend $16,000,000 in the United States of America on American children and that would be a
better investment for us than Japanese silk purchased on the public credit of the United States
Government.
Mr. Speaker, on the 13th of January of this year I addressed the House on the subject of the
Reconstruction Finance Corporation. In the course of my remarks I made the following
statement:
In 1928 the member banks of the Federal Reserve system borrowed
$60,598,690,000 from the Federal Reserve banks on their fifteenday promissory notes. Think of it! Sixty billion dollars payable
upon demand in gold in the course of one single year. The actual
payment of such obligations calls for six times as much monetary
gold as there is in the entire world. Such transactions represent

a grant in the course of one single year of about $7,000,000 to

every member bank of the Federal Reserve system. Is it any wonder
that there is a depression in this country? Is it any wonder that
American labor, which ultimately pays the cost of all banking
operations of this country, has at last proved unequal to the
task of supplying this huge total of cash and credit for the
benefit of the stock-market manipulators and foreign swindlers?
Mr. Chairman, some of my colleagues have asked for more specific information concerning this
stupendous graft, this frightful burden which has been placed on the wage earners and taxpayers
of the United States for the benefit of the Federal Reserve Board and the Federal Reserve banks.
They were surprised to learn that member banks of the Federal Reserve system had received the
enormous sum of $60,598,690,000 from the Federal Reserve Board and the Federal Reserve
banks on their promissory notes in the course of one single year, namely, 1928. Another Member
of this House, Mr. Beedy, the honorable gentleman from Maine, has questioned the accuracy of
my statement and has informed me that the Federal Reserve Board denies absolutely that these
figures are correct. This Member has said to me that the thing is unthinkable, that it can not be,
that it is beyond all reason to think that the Federal Reserve Board and the Federal Reserve banks
should have so subsidized and endowed their favorite banks of the Federal Reserve system. This
Member is horrified at the thought of a graft so great, a bounty so detrimental to the public
welfare as sixty and a half billion dollars a year and more shoveled out to favored banks of the
Federal Reserve system.
In 1930, while the speculating banks were getting out of the stock market at the expense of
the general public, the Federal Reserve Board and the Federal Reserve banks advanced them
$13,022,782,000. This shows that when the banks were gambling on the public credit of the
United States Government as represented by the Federal Reserve currency, they were subsidized
to any amount they required by the Federal Reserve Board and the Federal Reserve banks. When
the swindle began to fall, the bankers knew it in advance and withdrew from the market. They
got out with whole skins and left the people of the United States to pay the piper.
On November 2, 1931, I addressed a letter to the Federal Reserve Board asking for the
aggregate total of member bank borrowing in the years 1928, 1929, 1930. In due course, I
received a reply from the Federal Reserve Board, dated November 9, 1931, the pertinent part of
which reads as follows:
My Dear Congressman:
In reply to your letter of November 2, you are advised that the
aggregate amount of fifteen-day promissory notes of member banks
during each of the past three calender years has been as follows:
1928 . . . . . . . . . . . . . $60,598,690,000
1929 . . . . . . . . . . . . . . 58,046,697,000
1930 . . . . . . . . . . . . . . 13,022,782,000
This will show the gentleman from Maine the accuracy of my statement. As for the denial of
these facts made to him by the Federal Reserve Board, I can only say that it must have been
prompted by fright, since hanging is too good for a Government board which permitted such a
misuse of Government funds and credit.
My friend from Kansas, Mr. McGugin, has stated that he thought the Federal Reserve
Board and the Federal Reserve banks lent money by rediscounting. So they do, but they lend

comparatively little that way. The real rediscounting that they do has been called a mere penny in
the slot business. It is too slow for genuine high flyers. They discourage it. They prefer to
subsidize their favorite banks by making these $60,000,000,000 advances, and they prefer to
acquire acceptances in the notorious open discount market in New York, where they can use
them to control the prices of stocks and bonds on the exchanges. For every dollar they advanced
on rediscounts in 1928 they lent $33 to their favorite banks for gambling purposes. In other
words, their rediscounts in 1928 amounted to $1,814,271,000, while their loans to member banks
amounted to $60,598,690,000. As for their open-market operations, these are on a stupendous
scale, and no tax is paid on the acceptances they handle; and their foreign principals, for whom
they do a business of several billion dollars every year, pay no income tax on their profits to the
United States Government.
This is the John Law swindle all over again. The theft of Teapot Dome was trifling
compared to it. What king ever robbed his subjects to such an extent as the Federal Reserve
Board and the Federal Reserve banks have robbed us? Is it any wonder that there have lately
been ninety cases of starvation in one of the New York hospitals? Is there any wonder that the
children of this country are being dispersed and abandoned?
The Government and the people of the United States have been swindled by swindlers
deluxe to whom the acquisition of American gold or a parcel of Federal Reserve notes presented
no more difficulty than the drawing up of a worthless acceptance in a country not subject to the
laws of the United States, by sharpers not subject to the jurisdiction of the United States courts,
sharpers with a strong banking "fence" on this side of the water -- a "fence" acting as a receiver
of the worthless paper coming from abroad, endorsing it and getting the currency out of the
Federal Reserve banks for it as quickly as possible, exchanging that currency for gold, and in
turn transmitting the gold to its foreign confederates.
Such were the exploits of Ivar Kreuger, Mr. Hoover's friend, and his hidden Wall Street
backers. Every dollar of the billions Kreuger and his gang drew out of this country on
acceptances was drawn from the Government and the people of the United States through the
Federal Reserve Board and the Federal Reserve banks. The credit of the United States
Government was peddled to him by the Federal Reserve Board and the Federal Reserve banks
for their own private gain. That is what the Federal Reserve Board and the Federal Reserve banks
have been doing for many years. They have been peddling the credit of this Government and the
signature of this Government to the swindlers and speculators of all nations. That is what
happens when a country forsakes its Constitution and gives its sovereignty over the public
currency to private interests. Give them the flag and they will sell it.
The nature of Kreuger's organized swindle and the bankrupt condition of Kreuger's
combine was known here last June when Hoover sought to exempt Kreuger's loan to Germany of
$125,000,000 from the operation of the Hoover moratorium. The bankrupt condition of
Kreuger's swindle was known here last summer when $30,000,000 was taken from the American
taxpayers by certain bankers in New York for the ostensible purpose of permitting Kreuger to
make a loan to Colombia. Colombia never saw that money. The nature of Kreuger's swindle and
the bankrupt condition of Kreuger was known here in January when he visited his friend, Mr.
Hoover, at the White House. It was known here in March before he went to Paris and committed
suicide there.
Mr. Chairman, I think the people of the United States are entitled to know how many
billions of dollars were placed at the disposal of Kreuger and his gigantic combine by the Federal
Reserve Board and the Federal Reserve banks and to know how much of our Government

currency was issued and lost in the financing of that great swindle in the years during which the
Federal Reserve Board and the Federal Reserve banks took care of Kreuger's requirements.
Mr. Chairman, I believe there should be a congressional investigation of the operations of
Kreuger and Toll in the United States and that Swedish Match, International Match, the SwedishAmerican Investment Corporation, and all related enterprises, including the subsidiary
companies of Kreuger and Toll, should be investigated and that the issuance of United States
currency in connection with those enterprises and the use of our national-bank depositors' money
for Kreuger's benefit should be made known to the general public. I am referring, not only to the
securities which were floated and sold in this country, but also to the commercial loans to
Kreuger's enterprises and the mass financing of Kreuger's companies by the Federal Reserve
Board and the Federal Reserve banks and the predatory institutions which the Federal Reserve
Board and the Federal Reserve banks shield and harbor.
A few days ago, the President of the United States, with a white face and shaking hands,
went before the Senate on behalf of the moneyed interests and asked the Senate to levy a tax on
the people so that foreigners might know that the United States would pay its debt to them. Most
Americans thought it was the other way around. What do the United States owe to foreigners?
When and by whom was the debt incurred? It was incurred by the Federal Reserve Board and the
Federal Reserve banks when they peddled the signature of this Government to foreigners for a
price. It is what the United States Government has to pay to redeem the obligations of the
Federal Reserve Board and the Federal Reserve banks. Are you going to let those thieves get off
scot free? Is there one law for the looter who drives up to the door of the United States Treasury
in his limousine and another for the United States veterans who are sleeping on the floor of a
dilapidated house on the outskirts of Washington?
The Baltimore & Ohio Railroad is here asking for a large loan from the people and the
wage earners and the taxpayers of the United States. It is begging for a hand-out from the
Government. It is standing, cap in hand, at the door of the Reconstruction Finance Corporation,
where all the other jackals have gathered to the feast. It is asking for money that was raised from
the people by taxation, and wants this money of the poor for the benefit of Kuhn, Loeb, & Co.,
the German international bankers. Is there one law for the Baltimore & Ohio Railroad and
another for the needy veterans it threw off its freight cars the other day? Is there one law for
sleek and prosperous swindlers who call themselves bankers and another law for the soldiers
who defended the United States flag?
Mr. Chairman, some people are horrified because the collateral behind Kreuger and Toll
debentures was removed and worthless collateral substituted for it. What is this but what is being
done daily by the Federal Reserve banks? When the Federal Reserve act was passed, the Federal
Reserve banks were allowed to substitute "other like collateral" for collateral behind Federal
Reserve notes but by an amendment obtained at the request of the corrupt and dishonest Federal
Reserve Board, the act was changed so that the word "like" was stricken out. All that immense
trouble was taken here in Congress so that the law would permit the Federal Reserve banks to
switch collateral. At the present time behind the scenes in the Federal Reserve banks there is a
night-and-day movement of collateral. A visiting Englishman, leaving the United States a few
weeks ago, said that things would look better here after "they cleaned up the mess at
Washington." Cleaning up the mess consists in fooling the people and making them pay a second
time for the bad foreign investments of the Federal Reserve Board and the Federal Reserve
banks. It consists in moving that heavy load of dubious and worthless foreign paper -- the bills of
wigmakers, brewers, distillers, narcotic-drug vendors, munition makers, illegal finance drafts,

and worthless foreign securities, out of the banks and putting it on the back of American labor.
That is what the Reconstruction Finance Corporation is doing now. They talk about loans to
banks and railroads but they say very little about that other business of theirs which consists in
relieving the swindlers who promoted investment trusts in this country and dumped worthless
foreign securities into them and then resold that mess of pottage to American investors under
cover of their own corporate titles. The Reconstruction Finance Corporation is taking over those
worthless securities from those investment trusts with United States Treasury money at the
expense of the American taxpayer and the wage earner.
It will take us twenty years to redeem our Government. Twenty years of penal servitude to
pay off the gambling debts of the traitorous Federal Reserve Board and the Federal Reserve
banks and to earn again that vast flood of American wages and savings, bank deposits, and
United States Government credit which the Federal Reserve Board and the Federal Reserve
banks exported out of this country to their foreign principals.
The Federal Reserve Board and the Federal Reserve banks lately conducted an antihoarding campaign here. Then they took that extra money which they had persuaded the
American people to put into the banks and they sent it to Europe along with the rest. In the last
several months, they have sent $1,300,000,000 in gold to their foreign employers, their foreign
masters, and every dollar of that gold belonged to the people of the United States and was
unlawfully taken from them.
Is not it high time that we had an audit of the Federal Reserve Board and the Federal
Reserve banks and an examination of all our Government bonds and securities and public
moneys instead of allowing the corrupt and dishonest Federal Reserve Board and the Federal
Reserve banks to speculate with those securities and this cash in the notorious open discount
market of New York City?
Mr. Chairman, within the limits of the time allowed me, I can not enter into a particularized
discussion of the Federal Reserve Board and the Federal Reserve banks. I have singled out the
Federal Reserve currency for a few remarks because there has lately been some talk here of "fiat
money." What kind of money is being pumped into the open discount market and through it into
foreign channels and stock exchanges? Mr. Mills of the Treasury has spoken here of his horror of
the printing presses and his horror of dishonest money. He has no horror of dishonest money. If
he had, he would be no party to the present gambling of the Federal Reserve Board and the
Federal Reserve banks in the nefarious open discount market of New York, a market in which the
sellers are represented by ten great discount dealer corporations owned and organized by the very
banks which own and control the Federal Reserve Board and the Federal Reserve banks. Fiat
money, indeed!
After the several raids on the Treasury Mr. Mills borrows the speech of those who protested
against those raids and speaks now with pretended horror of a raid on the Treasury. Where was
Mr. Mills last October when the United States Treasury needed $598,000,000 of the taxpayers'
money which was supposed to be in the safe-keeping of Andrew W. Mellon in the designated
depositories of Treasury funds, and which was not in those depositories when the Treasury
needed it? Mr. Mills was the Assistant Secretary of the Treasury then, and he was at Washington
throughout October, with the exception of a very significant week he spent at White Sulphur
Springs closeted with international bankers, while the Italian minister, Signor Grandi, was being
entertained -- and bargained with -- at Washington.
What Mr. Mills is fighting for is the preservation whole and entire of the banker's
monopoly of all the currency of the United States Government. What Mr. Patman proposes is

that the Government shall exercise its sovereignty to the extent of issuing some currency for
itself. This conflict of opinion between Mr. Mills as the spokesman of the bankers and Mr.
Patman as the spokesman of the people brings the currency situation here into the open. Mr.
Patman and the veterans are confronted by a stone wall -- the wall that fences in the bankers with
their special privileges. Thus, the issue is joined between the host of democracy, of which the
veterans are a part, and the men of the king's bank, the would-be aristocrats, who deflated
American agriculture and robbed this country for the benefit of their foreign principals.
Mr. Chairman, last December, I introduced a resolution here asking for an examination and
an audit of the Federal Reserve Board and the Federal Reserve banks and all related matters. If
the House sees fit to make such an investigation, the people of the United States will obtain
information of great value. This is a Government of the people, by the people, for the people.
Consequently, nothing should be concealed from the people. The man who deceives the people is
a traitor to the United States. The man who knows or suspects that a crime has been committed
and who conceals or covers up that crime is an accessory to it. Mr. Speaker, it is a monstrous
thing for this great Nation of people to have its destinies presided over by a traitorous
Government board acting in secret concert with international usurers. Every effort has been made
by the Federal Reserve Board to conceal its power but the truth is the Federal Reserve Board has
usurped the Government of the United States. It controls everything here and it controls all our
foreign relations. It makes and breaks governments at will. No man and no body of men is more
entrenched in power than the arrogant credit monopoly which operates the Federal Reserve
Board and the Federal Reserve banks. These evil-doers have robbed this country of more than
enough money to pay the national debt. What the National Government has permitted the Federal
Reserve Board to steal from the people should now be restored to the people. The people have a
valid claim against the Federal Reserve Board and the Federal Reserve banks. If that claim is
enforced, Americans will not need to stand in the breadlines or to suffer and die of starvation in
the streets. Homes will be saved, families will be kept together, and American children will not
be dispersed and abandoned. The Federal Reserve Board and the Federal Reserve banks owe the
United States Government an immense sum of money. We ought to find out the exact amount of
the people's claim. We should know the amount of the indebtedness of the Federal Reserve
Board and the Federal Reserve banks to the people and we should investigate this treacherous
and disloyal conduct of the Federal Reserve Board and the Federal Reserve banks.
Here is a Federal Reserve note. Immense numbers of these notes are now held abroad. I am
told that they amount to upwards of a billion dollars. They constitute a claim against our
Government and likewise a claim against the money our people have deposited in the member
banks of the Federal Reserve system. Our people's money to the extent of $1,300,000,000 which
has within the last few months been shipped abroad to redeem Federal Reserve notes and to pay
other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve banks. The
greater part of our monetary stock has been shipped to foreigners. Why should we promise to pay
the debts of foreigners to foreigners? Why should our Government be put into the position of
supplying money to foreigners? Why should the Federal Reserve Board and the Federal Reserve
banks be permitted to finance our competitors in all parts of the world? Do you know why the
tariff was raised? It was raised to shut out the flood of Federal Reserve goods pouring in here
from every quarter of the globe -- cheap goods, produced by cheaply paid foreign labor on
unlimited supplies of money and credit sent out of this country by the dishonest and
unscrupulous Federal Reserve Board and the Federal Reserve banks. Go out in Washington to
buy an electric light bulb and you will probably be offered one that was made in Japan on

American money. Go out to buy a pair of fabric gloves and inconspicuously written on the inside
of the gloves that will be offered to you will be found the words "made in Germany" and that
means "made on the public credit of the United States Government paid to German firms in
American gold taken from the confiscated bank deposits of the American people."
The Federal Reserve Board and the Federal Reserve banks are spending $100,000,000 a
week buying Government securities in the open market and are making a great bid for foreign
business. They are trying to make rates so attractive that the human-hair merchants and distillers
and other business entities in foreign lands will come here and hire more of the public credit of
the United States Government and pay the Federal Reserve outfit for getting it for them.
Mr. Chairman, when the Federal Reserve act was passed, the people of the United States
did not perceive that a world system was being set up here which would make the savings of an
American school-teacher available to a narcotic-drug vendor in Macao. They did not perceive
that the United States were to be lowered to the position of a coolie country which has nothing
but raw materials and heavy goods for export; that Russia was destined to supply the man power
and that this country was to supply financial power to an international superstate -- a superstate
controlled by international bankers and international industrialists acting together to enslave the
world for their own pleasure.
The people of the United States are being greatly wronged. If they are not, then I do not
know what "wronging the people" means. They have been driven from their employments. They
have been dispossessed of their homes. They have been evicted from their rented quarters. They
have lost their children. They have been left to suffer and to die for lack of shelter, food,
clothing, and medicine.
The wealth of the United States and the working capital of the United States has been taken
away from them and has either been locked in the vaults of certain banks and the great
corporations or exported to foreign countries for the benefit of the foreign customers of those
banks and corporations. So far as the people of the United States are concerned, the cupboard is
bare. It is true that the warehouses and coal yards and grain elevators are full, but the warehouses
and coal yards and grain elevators are padlocked and the great banks and corporations hold the
keys. The sack of the United States by the Federal Reserve Board and the Federal Reserve banks
is the greatest crime in history.
Mr. Chairman, a serious situation confronts the House of Representatives to-day. We are
trustees of the people and the rights of the people are being taken away from them. Through the
Federal Reserve Board and the Federal Reserve banks, the people are losing the rights
guaranteed to them by the Constitution. Their property has been taken from them without due
process of law. Mr. Chairman, common decency requires us to examine the public accounts of
the Government and see what crimes against the public welfare have and are being committed.
What is needed here is a return to the Constitution of the United States. We need to have a
complete divorce of Bank and State. The old struggle that was fought out here in Jackson's day
must be fought over again. The independent United States Treasury should be re-established and
the Government should keep its own money under lock and key in the building the people
provided for that purpose. Asset currency, the device of the swindler, should be done away with.
The Government should buy gold and issue United States currency on it. The business of the
independent bankers should be restored to them. The State banking systems should be freed from
coercion The Federal Reserve districts should be abolished and the State boundaries should be
respected. Bank reserves should be kept within the borders of the States whose people own them,
and this reserve money of the people should be protected so that the international bankers and

acceptance bankers and discount dealers can not draw it away from them. The exchanges should
be closed while we are putting our financial affairs in order. The Federal Reserve act should be
repealed and the Federal Reserve banks, having violated their charters, should be liquidated
immediately. Faithless Government officers who have violated their oaths of office should be
impeached and brought to trial. Unless this is done by us, I predict that the American people,
outraged, robbed, pillaged, insulted, and betrayed as they are in their own land, will rise in their
wrath and send a President here who will sweep the money changers out of the temple.
Facsimile of the Congressional Record, 1932, pages 12595 and 12596
Back to An Astounding Exposure
Revised March 4, 2001

http://www.afn.org/~govern/mcfadden_speech_1932.html
http://www.afn.org/~govern/mcfadden.html
http://www.afn.org/~govern/index.html#Articles
A fiduciary duty (from Latin fiduciarius, meaning "(holding) in trust"; from fides,meaning "faith", and
fiducia, meaning "trust") is a legal or ethicalrelationship of confidence or trust regarding the management
of moneyor property between two or more parties, most commonly a fiduciaryand a principal. One party,
for example a corporate trust company orthe trust department of a bank, holds a fiduciary relation or acts
in afiduciary capacity to another, such as one whose funds are entrusted to itfor investment. In a fiduciary
relation one person, in a position of vulnerability, justifiably reposes confidence, good faith, reliance
andtrust in another whose aid, advice or protection is sought in some matter.In such a relation good
conscience requires one to act at all times for thesole benefit and interests of another, with loyalty to those
interests.A fiduciary is someone who has undertaken to act for and on behalf of another in a particular
matter in circumstances which give rise to arelationship of trust and confidence. Bristol & West
Building Society v Mothew [1998] Ch 1 at 18 per LordMillett
A fiduciary duty[1] is the highest standard of care at either equity orlaw. A fiduciary (abbreviation fid) is
expected to be extremely loyal tothe person to whom he owes the duty (the "principal"): he must not
puthis personal interests before the duty, and must not profit from hisposition as a fiduciary, unless the
principal consents

433.2.3.15 W12
Fiduciary - Wikipedia, the free encyclopedia

en.wikipedia.org/wiki/Fiduciary

Wikipedia

The court of chancery, which governed fiduciary relations in England prior to the
Judicature Acts ... Typically, a fiduciary prudently takes care of money for another
person. ... In the United Kingdom, the Judicature Acts merged the courts
of equity ....In the case of Canadian Aero Service Ltd v O'Malley, it was held that a
senior ...
137 U.S. 411 - Resource.Org
https://bulk.resource.org/courts.../137.US.411.html

Public.Resource.Org

by Supreme Court - 1890 - Cited by 210 - Related articles

But this outline does not present the questions involved in this case, and a ...
to takecharge of the forwarding of them, receiving in consideration therefor $5 a ...
This is a very accurate statement of the relations of the parties; and, in equity,
the ... received the moneys deposited, or what obligation such depositor
is under to ...
Understanding Fiduciary Duty - Bar Journal Article
www.floridabar.org/.../a90812c2b64922f9852576d5007...

The Florida Bar

The court in Doe also stated that [a] fiduciary relation exists between two persons
... of special skills or expertise, the fiduciary is under a duty to use those
skills.22 ... the outset of the case, the named plaintiffs and their attorneys had
proceeded on .... that it traded in Olinkraft's stock on the basis of the confidential
information, ...
The 12 Equitable Maxims : Law is Cool
lawiscool.com/2007/09/25/the-12.../comment-page-1/

Law is Cool

Sep 25, 2007 - Courts of equity do grant relief in case of partnership but here was
acase where the .... Satisfaction is the donation of a thing with it is to be taken in
extinguishment of ... A defective execution will always be aided in equity
under the ... it was held that the brother was entitled to both, the legacy and
his deposit.
You've visited this page 3 times. Last visit: 1/10/15
Supreme Court Reporter - Volume 11 - Page 122 - Google Books Result
https://books.google.com/books?id=dE04AQAAMAAJ

Robert Desty - 1891 - Law reports, digests, etc

The circumstances surrounding the deposits, and the relations between the ... It
could not in equity take them and cancel their privatedebt to it. ... We only decide
that, underthe circumstances of this case, the bank could not in equity
take these ...
Chapter 3 Custodian as trustee the custody relationship in ...
uk.practicallaw.com/books/9781847668776/chapter03

This new edition has been fully updated to take account of the significant
legislative ...In this case it was held that, where a bank trustee
lawfully deposits trust money with ... 3.8 For custodians regulated by the Financial
Services Authority under the ... (as defined in the Banking Act 2009), namely the
Investment Bank Special ...
FDIC Law, Regulations, Related Acts - FRB Regulations
https://www.fdic.gov/.../7500-170...

Federal Deposit Insurance Corporation

Any transaction not specifically permitted in a special purpose account shall

be ...relations between a customer and a broker or dealer registered only under ...
bank certificates of deposit, bankers acceptances issued by banking
institutions in ... creditor (in the case of a call option) or accept from the creditor
(in the case of a ...
FDIC: Risk Management Manual of Examination Policies
https://www.fdic.gov/.../section8-1...

Federal Deposit Insurance Corporation

Feb 2, 2005 - These records and reports have a high degree of usefulness in ... The
implementing regulations under the BSA were originally intended to aid
investigationsinto an ..... examiners should notify both their
Regional Special Activities Case ... established customer who maintains a deposit
relationship with the ...
The Supreme Court Reporter
https://books.google.com/books?id=9ugGAAAAYAAJ

1891 - Law reports, digests, etc

The circumstances surrounding the deposits, and the relations between the ... It
could not in equity take them and cancel their privatedebt to it. ... We only decide
that, underthe circumstances of this case, the bank could not
inequity take these ...
Account - Business Case Analysis
https://www.business-case-analysis.com/account.html

Accounts is hold the history and current balance for an asset, liability, equity, ...
The discussion below is concerned primarily with defining, explaining,
and ... In many kinds of situations, customers establish a special kind
of relationship with sellers ... A customer with a bank account, for instance, may
have the right to deposit ...

433.2.3.15 W12
there ga ther around any deposit, or line of deposits, circumstances
of a peculiar nature, wliich individualize that deposit or line of deposits, and
inform the bank of peculiarfacts of equitable cognizance, that it is debarred
from treating the deposit as that of moneys belonging absolutely to the
depositor. We notice, therefore, the peculiar circumstances which cast
knowledge upon this bank, in respect to these deposits. And this knowledge
was not limited to the character of the business of the depositor, that of
commission merchants, but extended to its results. The bank account of the
Rappals with the appellant, from the 1st of January, 1885, up to and
including the end of these transactions, is presented. It was abank account of
continuous and increasing overdrafts. Striking the balance, for the several
months, of the daily credits and overdrafts, the average result against the
Rappals, month by month, was as follows: January, $1,476.25; February,

$3,275.64; March, $2,483.77; April, $3,122.20; May, $6,526.03; June,

$9,850.46; July, $10,897.96; August, $12,494.05; September, $15,227.91;
and, in the two days of October prior to that depositwhich closed the
overdraft, the account was thus: October 1, $18,922.21. overdraft; October
2, $18,454.89, overdraft. Prom the 1st of August until October 2d, only on
three occasionsAugust27th and 28th andSeptember 3dwere there
balances to thecreditof the Rappals, and those of small amounts. It is
obvious from this account that the business of the Rappals was falling. The
story of their failure was written by the officers of the bank on its books, and
it knew all that such story told. It knew t that it had, as hereafter disclosed,
given 5 credit to the Rappals with the Kansas City dealers. It* saw them
failing in business. It knew their business was that of factor, receiving and
selling for others on commission. Why this particular occasion should be
seized upon, the testimony does not disclose; but is it not obvious that the
bank intended to arrest this continuing overdraft, and, familiar with the
character of the business of the Rappals, contemplated, with or without their
knowledge, the seizure and appropriation of the proceeds of some
consignment?
Further, as heretofore suggested, it appears that the assistant cashier of the
Kansas City Stock-Yards Bank wrote to the cashier of the Union Stock-Yards
National Bank a letter of Inquiry as to the financial standing, individual
responsibility, and nature of the business of Rappal, Sons & Co., to which this
answer was returned: "Union Stock-Yards National Bank, July 20, 1885. P.
Connelly, Esq., Assistant Cashier, Kansas City, Mo.Dear Sir: Your favor of
the 17th instant received. Rappal, Sons & Co. are a firm in good standing,
financially and otherwise. I don't think they keep much ready money in the
business, but F. J. Rappal owns large farms near Joliet, and is estimated worth
$50,000 to $60,000. He is a man of high character, and has always had good
credit, even before he had any means. Yours, truly, G. E. CONRAD, Cashier." T
his letter was shown to the Gillespies,
and they were informed at the same time that the Kansas City bank had
arrangements for notification by telegraph in case any draft was not paid.
The effect of this letter was to encourage confidence in the Rappals,
whatever may have been the motive of the defendant bank; and, in this
respect, it is fair to say that there is no evidence to justify the inference that
it was known to be inaccurate or intentionally misleading; but here, as often
elsewhere, results, rather than motives, are significant as to determining
liability. Again, it will be noticed that the Gillespies were advised that non-

payment of any a draft would be promptly communicated;* by telegraph.

That was in fact*the uni- form custom of the defendant bank. It so
happened that the various shipments of cattle and the corresponding drafts
were on different days. The first shipment reached Chicago, and the cattle
were sold on October2d,Friday. The draft for theamount thereof, $6,506.40,
arrived the same day, and was presented to the Rappals, and not paid. No
explanation was given to the bank by the Rappals for the non-payment. No
notice was communicuted by telegraph of the non-payment, and no
Information was received at Kansas City thereof until Monday, October 5th.
On Saturday, October 3d and Monday,October 5th,the
balance or theshipment, being the bulk of the cattle, was received and sold,
the major portion, being so received and sold on Saturday. As the draft
received Friday was not accepted or paid, if notice thereof had been given
promptly by telegraph, as was the custom, and as the Gillespies were
advised was the custom,they might have protected the balanceof thecattle,
and prevented the Rappals from receiving and selling them. It is fnir to say
that the testimony shows, and so it was found by the circuit judge, that this
failure to telegraph was due to the negligence ofa clerk, and was not the
intentional act of the bank; but we cannot conceive that the question of
motive is significant. The result of the omission of the officers of the bank to
telegraph Friday, whether intentional or accidental, was the same; and the
bank is equally responsible whether the result flowed from
negligent or intentional omission. Again, it must be noticed that when, on
Friday morning, the bank received the draft, it was information to it
that a shipment to the Rappals accompanied the draft; and, when the
Rappals declined to pay that draft, that fact suggested either that the
Rappals had not received the shipment or else that, having received it, they
proposed to appropriate the proceeds, and repudiate the obligations of factor
to principal. When the sale tickets were deposited that evening, it was notice
that they had received the shipment, and that for some reason they were
contesting their liability to the consignor. As the office of the Rappals was but
four or five hundred feet from the bank, it knew that ites could ascertain the
exact facts; but^! it failed to make Inquiry; and'under those* circumstances,
failing to inquire and failing to notify the consignor and drawer, it is fairly
held responsible for its ignorance of facts which it might easily have ac
.quired knowledge of, and its omission to <lo that which both its custom and
duty .compelled it to do.

Summins up these various facts, it may be observed that the bank knew
that the business of the Rappals was a failing one; that, instead of making
money, they were gradually going deeper and deeper into debt. It knew that
the Rappals were not buyers, but simply consignees andfactors; and that the
moneys received by them, on account of sales, of right belonged to their
consignors and principals. It knew from the draft received that a shipment
had been marie to the Rappals. It knew that it had failed to give notice of the
non-payment of the first and smaller draft, and so had put it out of the power
of the consignors to protect themselves against the subsequent misconduct
of the consignees and factors. It knew, or was chargeable with the
knowledge of the fact, that the consignors were confiding in the consignees
and factors on the strength of the representations it had made. Upon nonpayment of the first and smaller draft. it knew that it was in a position to
easily acquire knowledge of the exact facts; and with its means of knowledge
it remained inactive and silent. With all these matters resting in
actual or imputable knowledge, 1t accepts from the Rappals, consignees
-and factors, the proceeds of the sale of cattle consigned to them by the
Gillespies. .Can it be that it is not held to know that it was taking from the
Rappals the proceeds of complainants' property consigned to them for sale,
to discharge their debt to it? While the obligation of a factorto his principalis
not a debtcreated by one acting in a fiduciary capacity, within the meaning
of the bankrupt law, as was adjudged in Chapman v. Forsyth, 2 How. 202,
and Hennequin v. Clews, 111 U. S. 676, 4 Sup. Ct. Rep. 576, the question
here is not as to the character of the obligation of factor to principal, but as
to the liability of one who takes from a factor, in payment of his debt,
moneys which he knows equitably belong to that factor's
consignor and principal. Justice forbids the upholding of such a transaction,
and
demands thafthe bank, receiving from the factor, in payment of a debt
from the factor to itself, moneys which it must have known were the
proceeds of the property received from his consignor and principal, account
to that principal for the moneys so received and appropriated. The question
of right must be resolved in favor of the rulings of the circuit court, and it
must be affirmed that the complainants are entitled to the moneys so
received by the hank. It is equitable, therefore, that the decree be affirmed, if
the suit be one of which equity may take cognizance; and so we pass to the
second question,that of jurisdiction.

We are met with the proposition that equity ought not to interfere when
the law furnishes a remedy; that whenabank has money in its possession
which, in fact, belongs to a third party, received from whatever source it may
be, an action at jaw will lie; and that, therefore, no case.for equitable
cognizanceispresented. But this latter proposition has some limita
tions. It may be true if the full, legal title to the moneys is in such
third party; but it is not true when his title is equitable rather than
legal; and the right of these complainants, as against the bank, to
the moneys deposited by their factor, is equitable. True, the
obligation of a factor to bis principal for moneys received on the
sale of property consigned to him for sale is not a debt created by
one acting in a fiduciary capacity within the meaning of the
bankrupt law, but it docs not follow that no fiduciary obligation
inheres in such debt. The case of Chapman v. Forsyth, 2 How. 202,
turned not so much on the existence of a trust obligation as on the
question as to what trust obligations were intended by the bankrupt
act. The court observes: "Thecases enumerated, 'the defalcation
of a public officer,' 'executor,' 'administrator,' 'guardian,' or '
trustee,' are not cases of implied but special trusts, and the 'other
fiduciary capacity' mentioned must mean the same class of trusts.
The act speaks of technical trusts, and not those which the law
implies from the contract. A factor is not, therefore, within the act."
It cannot be doubted that an element of a fiduciary nature enters Into the
obligation of the factor,an element different from thuttj which exists
iu case of vendor and pur-chaser. There is aconfidence beyond that in the
capacity and willingness of a debtortopay,there is a relianceof aprincipal on
his agent, a confidence that the agent will do as his principal directs, and he
loyal to the duties springing from such relation. When property is consigned
to a factor, and before sale, who doubts the continuing title of the
principal, or his power to restrain unauthorized disposition of such
property, or to compel observance by the factor of all the conditions of the
trust reposed in him? Can it be that on the moment of sale all these rights of
the principal and consignor end, and that there has arisen in their place
nothing but a simple debt from factor to principal, with absolute power on
the part of the factor to dispose of the moneys received as he sees fit, and
with no power on the part of the principal to challenge such
misappropriation, when the party who receives the moneys knows the
wrongful act of the factor? While it may be true that a legal title to the
moneys received on such sale is in the factor rather than in the principal, so

that the principal may not maintain an action at law as against one receiving
such moneys from the factor, yet, equitably, those moneys belong to the
principal, and equitably they may be'followed into the hands of any person
who receives them chargeable with notice of their trust character.
The case of National Bank v. Insurance Co., 104 U. S. 54, is in point. Iu
that case, one Dillon was the agent of the insurance company. He kept an
account with the bank. The account was entered on the bank books with him
as general agent. As agent of the insurance company, hecollected, and it
was his duty to remit, the premiums. In the course of his dealings with the
bank, he borrowed money on his persons! obligation. Finally, the bank
sought to appropriate his deposits to the payment of this debt. The insurance
company filed its bill in equity to recover the amount of those deposits as
equitably belonging to it. The fact that they were premiums received for the
insurance company was shown. It was held that, under the circumstances,
the bank received them with knowledge that, though the legal title to the
moneys was in Dillon, the beneficial ownership'was in the insurance
company, and the decree in favor of the insurance company was therefore
sustained. This court, by Mr. Justice MATTHEWS, discusses the question of the
liability of the bank to the insurance company, and the necessity of a suit
in equity to establish the rights of the company in these words: "It is
objected that the remedy of the complainant below, if any existed, is at law,
and not in equity. But the contract created by the dealings in a bank account
is between the depositor and bank alone, without reference to the beneficial
ownership of the moneys deposited. No one can sue at law for a breach of
that contract, except the parties to it. There was no privity created by it,
even upon the facts of the present case,as we have found them, between the
bank and the insurance company. The latter would not have been liable to
the bank for an overdraft by Dillon, as was decided by this court in National
Bank v. Insurance Co., 103 U. S. 783; and, conversely, for the balance due
from the bank, no action at law upon the account could be maintained by the
insurance company. But although the relation between the bank and its
depositor is that merely of debtor and creditor, and the balance due on the
account is only a debt, yet the question is always open, 'To whom
in equity does it beneficially belong?' If the money deposited belonged
to a third person, and was held by the depositor in a fiduciary capacity, its
character is not changed by being placed to his crrdit in his bank account."
See, also. Bank v. Walker, 130 U. S. 207, 9 Sup. Ct. Rep. 519.

The casein 104U.S., with the authorities cited in it, is decisive of this. The
legal title to these moneys deposited was in the Rappals; so it was in
that case in Dillon. The beneficial ownership is in the Gillespies; there it was
in the insurance company. The circumstances surrounding the deposits, and
the relations between the depositor and the bank, were such as to impart
notice to the bank that the beneficial ownership was outside of the legal title.
With that notice, it had no right to appropriate the deposits to pay the
obligations of the depositor to the bunk, but it was properly adjudged liable
in a suit in equity, ana in that alone, to the claims of'the beneficial owner.
Here the beneficial owner was the Gillespies; the legal title <vas in the
Rappals; but, when they deposited with the bank, the latter received the
moneys with notice that the beneficial ownership was elsewhere than in the
Rappals. It could not in equity take them and cancel their privatedebt to it.
What might have been the duty of the bank in respect to a check drawn by
the Rappals upon these moneys, in favor
of a third party, in view of their legal title and primary control, and what equities the Gillespies might have
in case the bank had paid such acheck, are questions not now before us, and in respect to which we express no
opinion. We only decide that, under the circumstances of this case,the bank could not inequity take these
particular deposits from the Rappals in payment of their debt to it. As the claim of the Gillespies against the bank
was equitable purely, equity alone had jurisdiction. We conclude, therefore, that the proper forum was sought, and
the decree was right; and it is affirmed.

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