So now you can see how the government manipulated gold so that a dollar was still a dollar, that being 100 cents and each cent containing 11 pennyweights of copper, but the gold amount dropped by 53 percent while the dollar remained the same.. So the people were robbed of over half the value of gold that they had saved when they sold, traded or whatever.
So lets look at it this way. One dollar is the standard, not the gold in the dollar. A cent is 1/100 of a dollar. 1/100 of the 1810 gold is 0.285 grains of gold. 1/100 of the 1933 gold is 0.1371 grains of gold. When we talk of a dollar we are not talking about paper money at all. In the old days when paper was backed by gold, a piece of paper marked one dollar could be exchanged for 25.8 grains of gold so it had to be at par.. Enter the money changer (banker) and he is out to rob you of your wealth no matter what anyone says. It is not in his best interest to just hold your money. He is out to make money on your money, else he would not stay in business.
But what is "money?" The Statement of T. Cushing Daniel of Virginia, September 25, 1913, Before the Banking and Currency Committee, United States Senate on H.R. 7873 (S.2639) He is the leading expert on money, even unto this day, although he died in 1924.
"Money, then has been made by agreement, as it were, a substitute for demand, and is so called because it exists not by nature, but by law, and it is in our power to change it and make it useless for the purpose. It is called "nomisma" (from "nomos," law), because money is not a natural product, but exists only through law, and it lies with us to change it and rob it of its utility as we will."
Daniel stated this to Congress :
"I will repeat those reputed authorities, J.P. Morgan, Prof. Irving Fisher, and Prof. Lawrence Laughlin, unreservedly hold "that 25.8 grains of gold fixes the purchasing power of the dollar."
I will now show that this is an absolute fallacy and will first prove that the unit of value in the United States is the dollar and not the 25.8 grains of gold in the dollar.
The United States mint was established by the act of Congress of April 2, 1792, and it provides in section 9:
"That there shall be from time to time struck and coined at the said mint coins of gold, silver, and copper of the following denomination, values, and descriptions:
"Eagle: Each to be of the value of 10 dollars or units and to contain 2474/8 grains of pure standard gold.
"Dollars or units: Each to be of the value of a Spanish mill dollar, as the same is now current, and to contain 3714/16 grains of pure silver.
"Half dollars: Each to be of half the value of the dollar or unit.
"Sec. 20. And be it further enacted, That the money of account of the United States shall be expressed in dollars or units, dimes or tenths, cents or hundredths, mills or thousandths: A dime being the tenth part of a dollar; a mill the thousandth part of a dollar, and that all accounts in the United States shall be kept and had in conformity to this regulation."
This act establishes $1 as the legal unit of value in the United States and then says that when gold is coined into a dollar or money unit it shall contain 25.8 grains of gold, and this gold shall be weighed according to the standard of weight used at the mints before being coined into money units or dollars.
The dollar or money unit is the creation of the sovereign power of the people and binds them and their property to protect its value and redeem it at par. In other words, it is a creation of law, lawful money of the United States, a legal tender for all things on sale, all services for hire, and the ultimate of payment for all debts, public and private.
This means that 96,000,000 people in the United States stand ready to receive it and redeem it at 100 cents on the dollar. In fact, its money value, its purchasing and debt-paying power, would be the same if it did not have one grain of gold in it.
Every legal tender dollar or money unit is redeemable (continuously) in $134,000,000,000 of national wealth including all the gold and silver that we now have or ever will have, and the services of 96,000,000 of the most energetic, enterprising, and productive people in the world
That money is a creation of law has been recognized by the leading and most reliable economists of the world from the days of Aristotle. This great thinker, whose complete neglect of artistic forms and his adherence to "essential, naked truths," induced Dante to speak of him as "The master of those that know," and placed him at the head of the philosophic family, speaking of money, says, Ethics:
"Money, then, has been made by agreement, as it were a substitute for demand, and is so called because it exists not by nature, but by law, and it is in our power change it and make it useless for the purpose. It is call, "nomisma" (from "homos," law), because money is not a natural product, but exists only through law, and it lies with us to change it and rob it of its utility as we will."
Paulus, the Roman juris-consult, incorporated in the Pandects of Justinian this economic fact:
"And this material--gold--stamped by the State, circulates with a power which it derives not from the substance but from the quantity. Since that time of the things exchanged one is called merchandise and the other is called price."
It is plain that the 25.8 grains of gold is not the unit value of the United States, but that $1 is the unit of value and so declared by law.
I will now prove that the dollar puts the value into gold and not the gold the value into the dollar.
What would be the value of gold if demonetized? The history of the fall in the price of silver when monetized is the conclusive answer. The demonetization of silver started in 1873, at which time silver was worth $1.00368. Present price after being demonetized (i.e., denied the use as money), 54 cents.
Fix the basic fact in the mind, that value depends demand. No fair- minded man will contend that gold, if demonetized-- or denied the use as money---would be worth more than 50 cents on the
dollar.* * * "Money will exchange for anything--corn, houses, horses, carriages, books, etc.--and each of these is the value of the money with respect to that commodity. But which of these is its intrinsic value? The incongruity of these ideas is so glaring that it is only necessary to call attention to it for it to be perceived at once. 'Yet from the very beginning of the science this phrase has infested it.'
"To say that money, because it is material, and the product of labor, has intrinsic value, and that a bank note is only the representative of value, is just as absurd as to say that a wooden yard measure is 'intrinsic' distance, and that the space of 36 inches between two points is 'representative' distance. It is of the first importance to economic science to exterminate this unhappy phrase 'intrinsic value,' which is clearly shown to be a contradiction in terms." (MacLeod: "Theory and Practice of Banking.")
Thus having disposed of this transparent fallacy of "intrinsic value" used so successfully for many years by those advocating the gold basis for the redemption of credit substitutes for money issued by banking corporations and manufacturers of debts against the people, we are now prepared to annihilate the entire premises or foundation upon which the present false and infamous money system is established, advocated, and indorsed by J.P. Morgan et al.
Here is the crux of their economic conclusion on money: "The fact that every dollar, whether coin or paper, is practically interconvertible with 25.8 grains of gold bullion --mere merchandise--fixes the purchasing power of the dollar."
In other words this 25.8 grains of gold bullion constitutes the so-called gold standard of value.
There is only one standard of value in a money system, and it has long since been fully recognized and indorsed by leading economists and recognized authorities on money. Concisely stated, the standard of value in a money system is constituted by the number of dollars in the system. The value of the dollar is made by the demand for dollars, demand operating against the supply. Therefore, if the dollars are few and the demand great the standard of their value is high and their purchasing power great." End of quoting Daniel
Today paper is backed by nothing except faith. Faith has no intrinsic value whatsoever.
Without any substantive backing, the bankers manipulate gold and silver to their liking. The more paper they can sell the better their profits. In Daniel's book on page 220, he says ; "The Federal Reserve Act embodies and enlarges The Bank of England scheme of creating debts without lending money. * * * The fact being that the government cannot issue a dollar under this act, or even a Federal Reserve note, unless a bank borrows it on a debt already created by the borrower; and this note is itself a debt, NOT money, being redeemable at the United States Treasury, by the people in gold. [remember this was before 1933]. Thus the Federal Reserve notes are issued for and entirely controlled by Banking Corporations organized for private gain, and are in no sense Government notes issued in the interest of the people. I ask this question: could the ingenuity of the most cunning and unscrupulous minds conceive a more ingenious and dishonest scheme, to rob people by putting them in debt by loaning them money that has no existence?"
So let's look at how they do it.
A Federal Reserve note is a worthless piece of paper and is not representative of anything and you can check it out on the Treasury website where they say so, see Legal Tender Status
I will use a round figure for one ounce of gold today that is sold for 340.00 pieces of paper called one dollar. Now that one ounce of Gold does nothing but sit there and neither loses weight or gains weight. However, the paper does lose or gain in relation to the gold. Remember always, that the dollar cannot be manipulated, but gold can and that is why there is no such thing as a "gold standard". There is a dollar standard of 11 pennyweights of copper per cent or 1/100 of a dollar. So a dollar of gold today contains 0.708333 grains of gold.
That is a far cry from 25.8 grains of 1810 and 13.71 grains of 1933. What has happened is when the bankers removed the gold backing to make way for their private paper notes, they stole the gold out from under the people by inflating the amount of paper needed to obtain that gold. They made the people think that gold went up but in reality only made their paper more worthless that it had been. Remember that one ounce of gold remained the same but you needed more paper to obtain the same weight.
This is where people have no concept and run out to buy gold when it drops and they expect it to rise. If the paper dollar was equal to 25.8 grains of gold ( a dollar of gold) then they are "at Par", an industry term meaning they are worth exactly the same as it should be and was before the bankers saw a way to steal the people of America blind.
So when people say gold went up today, all they are saying is that the federal reserve note became more worthless than it was yesterday because you now need more paper to buy what you bought yesterday. That is how they put more debt, their notes, in service. Now you have to work a longer time to obtain more paper to buy that same ounce that just sat there gaining or losing not one grain.
If Gold ever went back to 25.8 grains to the dollar of copper pennyweight, the standard , then and only then would the F.R.A.U.D. be evident and the people would see the scam. What is F.R.A.U.D.'s? It stands for Federal Reserve Accounting Unit Devices. So the federal reserve note is aptly named by its own originators and is truly a fraud.. When you don't want a thief to steal your paper denominated 100 FRN, you leave it in plain sight and he looks everywhere else in all the hiding places. The same with the federal reserve private corporation of international bankers. They put all their theft out in plain sight and people do not see it for what it is worth; evidence the treasury site I placed here for you to go to and all the Federal Reserve Bank publications that shows you in black and white how they steal from the people. And the people look for some hidden secret that is out in plain sight. The same manipulation applies to silver also.
Even as in the early 1960's a dollar of silver was exactly the same as a dollar piece of paper. The paper had written on the bottom that it could be redeemed for one dollar of silver, which used to be 371 grains of silver but now they manipulated it to one ounce or 480 grains.. Today you will not find that on any paper named a note. I used to cash my entire paycheck in silver coin so I could coin collect what silver coin I needed, then spend it as we do today to buy whatever we wanted. Today it costs about 7 pieces of paper called a dollar to obtain that same ounce of silver that is also marked one dollar. There it is in plain sight for all to see and they don't see it for the fraud because they do not understand the term money and what it really means. Yet you cannot buy a 7 dollar item from Wal- Mart with that one ounce silver claiming you paid 7 pieces of paper also marked a dollar. They say the face value is only one dollar and they want 7 pieces of silver. It is axiomatic that people are highly ignorant and seem to have lost all reasoning and analytical thinking on a very important issue in their lives with the failed education in government schools designed to stifle reasoning.
I would like to end here with the conclusion of Daniel in addressing Congress, for he states;
" In conclusion, I would impress upon the mind that a dollar is not a debt, but a redeemer of debt; therefore one dollar should not be redeemed in another dollar.
This idea is an invention of the money lender and manufacturer of debts: A reversal of all sound ideas of finance that ever existed. It is based on the absurdity that a dollar is a debt. A dollar has never been a debt. It is not made for redemption, but is made to be a redeemer.
If the paper dollar is treated as a debt, then the gold dollar must be treated as a debt, else the one dollar is not at a parity of function with the other dollar; then one has the quality that the other does not possess, and the two dollars are not treated on equal terms.
There is no sound and stable money System unless every money unit in that system is legally equivalent to every other money unit.
I would ask these gentlemen who say they believe that 25.8 grains of gold fixes the purchasing power of the dollar and constitutes the standard of value in the United States to answer the following questions:
First. If the $750,523,267 of nonlegal tender bank notes --credit money--were withdrawn from the money system of the United States what would be the effect upon values ? There is only one answer: Any man of average intelligence knows there would be a great contraction of the circulating medium, a consequent fall in Prices, a tremendous increase in the purchasing power of the dollar, ending in a money panic.
Second. If the $727,886,731 of silver currency, now debts redeemable in gold, and the $344,221,741 of nonlegal tender greenbacks were withdrawn, what would be the result ? A money panic would follow sufficient to create financial ruin and repudiation throughout the country and the present standard of values would be absolutely destroyed.
Is there a man who still believes that if the silver currency, greenbacks, national-bank notes, all nonlegal tender currency, were taken out of the money system of the United States there would be no fall in prices of other things, and that 25.8 grains of gold would still fix the purchasing power of the dollar or money unit? If so, no other term would describe him than a "gold monomaniac."
To demonstrate how this false economic theory of money has worked in the interest of those who created and maintain it, money lenders and manufacturers of debts, and to the greatest injury of the people, I call attention to the following statement from the last Report of the Comptroller of the Currency, 1912, page 50, viz.:
"June 14, 1912: Cash holdings of the 25,195 all reporting banks, $1,572,953,479.43."
Of this amount, only $881,936,455 was gold, or legal money. It is shown on page 49, same report of the Comptroller of the Currency, that upon this narrow foundation of real money these banking corporations have invested $5,358,800,000 in bonds and other securities, and then have made loans and discounts to the people, aggregating the enormous sum of $13,953,600,000. In other words, these banking corporations, after investing in bonds and stocks more than five times as much money as they had in their business, used their bank-credit substitutes for money, and manufactured $13,953,600,000 of interest-bearing debts against the people, held alone by these banks.
I will now give a typical illustration of how it is done. There is, we assume, $1,000,000 of actual cash money in circulation in a community. A bank is opened by a few men who say to the people:
"More business can be done in this community, and you need more money with which to do it. Put your million dollars in our bank and we can arrange to accommodate this demand for more money with which to do it."
The $1,000,000 is deposited in the bank. Several of these men then apply to the bank for a loan to establish a cloth factory. The banker approves the loan and requests them to leave their notes for the amount, and securities against the property, places the amount to their credit, and gives them a check book for them to check against the amount, to pay for their machinery, etc.
Now, since all classes in the community are depositing their money in the bank, little money will go out in payment for these checks. Thus a great many loans can be made in this way, and new enterprises started and men put to work.
Plans are then submitted to this banker for ironworks, lumber yards, etc. They look to be safe and sound loans, and are made by the banker to the amount of half a million dollars, and they leave their notes and securities, and are allowed to check on the bank to that amount in payment for their needs in establishing these enterprises.
Everybody is now leaving their money and checks on deposit with the bank. The half a million of checks drift back to the bank in the course of a few days, and are not cashed, the money being left with the bank for Safety.
More borrowers come in and leave their notes and mortgages and borrow, and the amount is placed to their credit m figures, and they also take their check book with them to check up on same.
The banker has now loaned out the $1,000,000, and only enough money has been taken 'out of the bank to meet the small necessities of those bringing in the checks, and while these small amounts of cash are going out other small amounts of cash are coming in, and the two about balance each other.
The banker has now loaned this million once, and drawing interest on it and still has it all in his bank, for the people who have brought in the checks against this million that had been loaned have not cashed them; in other words, have left them on deposit. So the banker when he makes up his "bank statement" for the United States Treasury Department reports that the bank has on deposit, not $1,000.000 but $2,000,000. And those who read this statement refer to this as evidence of the prosperity of their community, since the bank began doing business with them.
Other industrious and enterprising men come along to establish new enterprises, and borrow on stocks, bonds, and other securities. The banker sees they are good and makes the loans.
Checks are written to the extent of another million. They come back to the bank and are put on deposit, the cash going out being balanced by the cash coming in.
Now, the banker has loaned the million twice and is drawing interest on it twice at the same time. Another million is loaned in the same way. The third million is loaned, and only $1,000,000 is being used as the basis of all these loans, and the banker is drawing interest on the million dollars three times over at one and the same time.
In the bank's statement sent in to the United States Treasury it would now report deposits of four million. It makes no distinction between the deposits of actual cash and the deposit of checks drawn against the bank's credits.
These loans increase under this process until the bank draws its 6 per cent. interest as much or more than 10 times over on every million dollars, or over 100 per cent. on the actual money in the business.
While the people refer to the prosperity of their community as evidenced by the large deposits in the bank, the actual situation is this: The enterprises in this community have all been mortgaged by this process, and the people are working to pay interest and principal on these debts manufactured on them by these bank credits. They are, in fact, financially enslaved and working for the credit money lenders.
The banker or manufacturer of debts now grows most important, and talks about his manufactured loans out of nothing as "accommodations," and now advises and dictates to those doing the borrowing from his institution. The banker now gets let in on the ground floor on promotion schemes, assumes a patronizing and advisory position to everybody else, considers every one else's business his business and his own business no one's but his own.
In the larger cities the clearinghouse association of banks is the modus operandi. The New York Clearing house is a typical illustration in its charging off of checks one against the other to avoid paying out money. Report of the Comptroller of the Currency, 1912, page 775: Clearinghouse exchanges for year 1912, $96,672,300,864; balances settled in money, $5,051,262,292; the per cent of balances settled to exchanges, 5.22 per cent. Thus $100,000 of incoming checks on a bank is paid with only $5,200, and this is not paid out to the depositors, but transferred from one bank to another.
This is the process by which the banking institutions of the United States, with only $881,936,455, or less than $1,000,000,000 of real money in hand, have manufactured, by the use of their credit substitutes for money, nearly 14 billions of debts against the people, payable to these banks, principal and interest, in money.
Present monetary condition of the United States as developed by the dealers in debts: Total amount of legal tender money, gold, in the United States, Report of Director of Mint, 1912, page 243, $1,616,538,976; debts, nonlegal tender currency, redeemable in gold, $1,822,631,739.
On the gold-basis theory that every other dollar in the currency system is interconvertible with the gold dollar, these demand obligations would exhaust more than the entire gold supply.
END OF quoting Daniel.
The best way to break the strangle hold of banks is to not deal with banks, but people are so used to banks that they will not forsake the convenience to go and buy US Postal money Orders or pay in coin minted by the United States, like Susan B Anthony. They don't care if they get raped 10 times over and that's what the banker plays on, ease of getting raped, and it feeeels soooo good. But if a robber came into the house and stole even less, they would kill him. A banker is different for people nuzzle up to his zipper to get robbed with convenience. So now when you hear someone say "hey look, gold went up today" you can laugh at him. Notice how many experts in "money" say the same thing. They are not very expert are they?
I Want The Earth Plus 5%
A Phone Call To The Fed