THE JEROME DALY COURT CASE

First National Bank of Montgomery vs. Jerome Daly

The Credit River Case of Minnesota

In 1969 there was a Minnesota court case involving a man named Jerome Daly who was challenging the
foreclosure of his home by the bank which provided the loan to purchase it.

His argument was that the mortgage contract required both parties being he and the bank, each put up a
legitimate form of property for the exchange. In legal language, this is called consideration.

 Consideration – a contract’s basis. a contract is founded on an exchange of one form of

consideration for another.

Mr. Daly explained that the money was in fact not the property of the bank for it was created out of
nothing as soon as the loan agreement was signed.

(Remember what Modern Money Mechanics stated about loans)!?

“What they do when they make loans is to accept promissory notes in exchange for credits.”

Reserves are unchanged by the loan transactions, But the deposit credits constitute new additions to the
total deposits of the banking system. See Illustrations 3.

In other words, the money doesn’t come out of their existing assets. The bank is simply inventing it
putting up nothing of its own, except for theoretical liability on paper. As the court case progressed the
banks president Mr. Morgan took the stand and, in the judges, personal memorandum, he recalled that
the (Plaintiff, “banks president”) admitted that it, in combination with the Federal Reserve Bank did
create the money and credit upon its own books by bookkeeping entry. The money and credit first
came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute
existed which gave him the right to do this. A lawful consideration must exist and be tendered to support
the note. The Jury found there was no lawful consideration and I agree. He also politically added, only
God can create something of value out of nothing. Upon this revelation the court rejected the banks
claim for foreclosure and Daly kept his home.

Note: Every time you borrow money from a bank whether it is a Mortgage Loan or a credit card
charge, the money given to you is not only counterfeit, it is illegitimate form of consideration and hence
voids the contract to repay for the bank never had the money as property to begin with. Unfortunately,
such legal realizations are suppressed and ignored and the game of perpetual wealth transfer and

perpetual debt continues and this brings us to the ultimate question. Why?