Federal Reserve Notes

1 When the United States of America was in its infancy, our currency was mostly foreign coin.

2 After 1795 we still had foreign coin but we also had US gold or silver coins manufactured by the United States Mint, plus some Colony- and Bank-issued paper currency.

3 In 1862, President Abraham Lincoln introduced the “Greenback Note”; the first United States paper currency.

4 And in 1914, the first Federal Reserve Notes were issued by the non-federal Federal Reserve.

5 Prior to 1933, almost every issue of our paper currency was immediately redeemable in “lawful money of the United States” — officially minted United States gold or silver coins.

6 Even though our paper currency was called “money” it was only a temporary substitute for money, a convenient alternative to bulky heavy coins.

7 Our inattention to the precise meaning of our words led to a gradual but insidious change in what we accepted AS money — a change from real money to paper substitutes.

8 In 1933, gold coins and gold certificates were withdrawn from circulation.

9 In 1963, the promise of redemption was no longer printed on our paper currency.

10 In 1968, redemption in silver coin or bullion of the remaining money-substitutes — Silver Certificates, Federal Reserve Notes, and United States Notes — was discontinued.

11 Today, on the threshold of this New Millennium, the only paper currency in general circulation in the United States and throughout the world is the non-federal, Federal Reserve Note.

12 Since today’s Federal Reserve Note is not redeemable in lawful money or bullion, it is neither a Note nor a money-substitute in the traditional sense. In reality it is a Federal Reserve token instead of a Federal Reserve note.

13 Today — out of innocent habit — most Americans use the word dollar incorrectly.

14 The Federal Reserve tokens (FRTs) we use today in daily trade are NOT dollars. To say that FRTs are dollars is to say that they are units of weight — an irrational assertion.

15 FRTs are NOT dollar-bills.

16 A bill is a writing at law. In the United States a dollar-bil, in financial contemplation, is a writing at law which describes a payer who must pay gold or silver to a payee — and the gold or silver must be counted by weight in dollar units-of-weight whether the metal is in the form of coin, bullion, dust, nuggets, or plate.

17 Officially issued dollar-bills — Silver Certificates, Gold Certificates, some series of United States notes, and series of Federal Reserve notes prior to 1963 — have been withdrawn from circulation.

18 Many people are surprised to discover that no actual dollar-bills are in general circulation anywhere in the world today.

19 FRTs are not money. Money is an object manufactured in a mint, usually from precious metals, into a medium of exchange.

20 Granted, FRTs are a medium of exchange, but they are not manufactured in a mint and are not made of metal, precious or otherwise.

21 Moreover, in spite of their acceptance AS money by an unaware populace, they have zero intrinsic value, or worth.

22 FRTs are not “the same as” money or “the same as” dollars or “the same as” silver or gold. FRTs are not “lawful money of the United States.”

23 Someday, you might find yourself discussing these interesting matters with a middle-management civil-service employee, or a political office-holder or candidate, or some “expert” from the banking field or from your local University.

24 In conversing with these people you might remind them that genuine money substitutes such as genuine dollar-bills are a lot like valid coupons because both are redeemable for things having intrinsic worth — such as shortening, a pint or quart of milk, silver coin, and so forth.

25 Since FRTs are not redeemable, they are like expired coupons — they are worthless.

26 Should some “expert” begin to argue that FRTs are “the same as” dollars of money of silver or gold, ask him to consider a coupon for a one-pound can of shortening. Then ask him these questions:

26.1. Is the coupon “the same as” the can of shortening?

26.2. If the coupon is expired, is it still “the same as” the shortening?

26.3. Can you grease a skillet with a coupon?

26.4. If a coupon for one dollar of silver is expired, isn’t it just as worthless as an expired coupon for a one-pound can shortening?

26.5. Would you be willing to accept expired coupons for shortening or anything else, in lieu of your paycheck?

26.6. Do you realize that when you cash your paycheck today, you are accepting expired coupons?

27 May the grace of our Lord Jesus Christ be with you all. Amen.