NESARA BILL

Read also This Page to see who is telling the truth

The information presented below is found on a government site so

you must decide if the first section is real or not for yourself.

Status of the Proposed Bill

Most of the links on this page have become broken.

Please use this link for aditional info www.nesara.org/

January 16, 2006: The bill has not been enacted into law, has not been introduced into Congress, and has not yet been assigned a tracking number. Please contact the President, representatives and senators, and ask if they support the bill. Send them all a copy of the bill (further contact information is available on our Political Contacts page).

After the bill is assigned a number, the status of the proposed bill also can be viewed at the Thomas locator registry. However, the bill will not appear in the Thomas registry until the bill has been assigned a number.

Introduced into Committee: We need at least one representative to sponsor the bill, obtain a bill number, and enter the bill into the record. The two House committees that would be interested in the bill are the Financial Services and the Ways and Means Committees. The two Senate committees that would be interested in the bill are the Finance and the Banking, Housing, And Urban Affairs Committees. Please contact the representatives on those committees, especially if one of the members happens to be your representative (contact information is available on our Political Contacts page).

Representatives and senators are becoming aware of the proposal. Please continue your phone calls, faxes, emails, personal contacts, etc. Grass roots pressure is beginning to work, so please continue applying pressure. See our Political Contacts page for more information. Please also continue spreading the word-see our Spread the Word page for ideas. If you wish to help financially, please see our What Can I Do? page for details.

Bill number: None

At one time the Treasury Department acknowledged the bill (the link is no longer active): http://www.ustreas.gov/education/faq/markets/economy.html. Please remember that the Treasury Department has no authority to make law and at best can only provide policy commentary and opinion to Congress.

How Does NESARA Compare to Other Proposals?

Fiscal Policy Reform Comparison Chart

Item

H.R. 25

H.R. 2717

NESARA

Designed to be revenue neutral

Yes

Written in plain English

Yes

Initial tax rate

23%

15%

14%

Payroll (SS/Medicare) taxes repealed

Yes

Sales tax tied to SS/Medicare rates

Yes

Item

H.R. 25

H.R. 2717

NESARA

Eliminates personal income taxes

Yes

Eliminates corporate income taxes

Yes

Eliminates gift taxes and estate taxes

Yes

Eliminates capital gains taxes

Yes

Secondary sales of securities taxed

Yes

Income withholding still in effect for non residents

Yes

Item

H.R. 25

H.R. 2717

NESARA

Labor/Direct services taxed

Yes

Groceries taxed

Yes

Prescription (not off-the-shelf) drugs taxed

Yes

Insurance premiums taxed

Yes

Mandated expenses such as permits, licenses, etc. taxed

Yes

Purchases outside U.S. borders are taxed

Yes

Business/trade purchases exempt

Yes

Tax basis is different for used property

Yes

De minimis limits established

Yes

De minimis breaks for real estate sales people, bankers and stockbrokers

Yes

Item

H.R. 25

H.R. 2717

NESARA

Simple at-the-counter exemptions used to offset regressive nature

Yes

High administrative costs associated with offsetting regressive nature

Yes

Complicated administrative rebate used to offset regressive nature

Yes

N/A

All families eligible for a rebate

N/A

Rebate provided through payroll deduction calculations

Yes

N/A

Families must register with the state

Yes

N/A

SSN required

Yes

N/A

Must disclose family income

Yes

N/A

Non-employee contracted labor eligible for rebate

Yes

N/A

Incarcerated family members excluded from tax rebate

Yes

N/A

Item

H.R. 25

H.R. 2717

NESARA

Barter subject to tax

Yes

Sellers must register with the State

Yes

Penalties established for failing to register

Yes

Sellers must maintain a segregated bank account

Yes

Sellers required to post bond

Yes

Purchaser sometimes liable for the tax

Yes

Complicated system of credits established

Yes

Reward program established for snitching

Yes

Net gaming receipts (income) taxed

Yes

Item

H.R. 25

H.R. 2717

NESARA

Maintaining books/records mandated

Yes

“Tax matters” person required to be established

Yes

Sellers subject to summons

Yes

Sellers subject to examinations

Yes

Sellers subject to audits

Yes

Wages may be garnished

Yes

No*

Homes subject to lien/levy

Yes

No*

Personal property subject to lien/levy

Yes

No*

Burden of proof on accused

Yes

Government purchases subject to tax

Yes

Item

H.R. 25

H.R. 2717

NESARA

Provisions provided to stabilize the currency

Yes

Constitutional gold and silver coin restored to circulation

Yes

Public control of the currency restored

Yes

Currency exchange index established

Yes

Item

H.R. 25

H.R. 2717

NESARA

Provisions provided to reform the Federal Reserve System

Yes

Provisions provided to cure inflation

Yes

Eliminates about $1 trillion of the public debt

Yes

Congress discouraged from creating money out of thin air

Yes

Congress forced to borrow currency already in circulation

Yes

Commercial paper prohibited from being used as bank reserves

Yes

Item

H.R. 25

H.R. 2717

NESARA

Provisions provided to reform banking

Yes

Compound interest on secured fractional reserve loans eliminated

Yes

Eliminates some private debt

Yes

* Except for responsible officers of corporations and the general partner and responsible officers of partnerships-see Part II 7(J).

___________________________________________________________________________________________

Executive Summary

NESARA

Monetary Policy Reform

Establishes three types of United States currency: standard silver coin and gold coin (restores Constitutional currency), and treasury credit-notes

The United States Treasury buys and cancels all outstanding capital stock of the former Federal Reserve Banks

The privately owned Federal Reserve System is abolished, returning ownership of the national currency to the people through a newly created United States Treasury Reserve System

A new Board of Governors of the Treasury Reserve System uses a specific law-mandated plan to maintain and stabilize the exchange value of the currency

The new Board assumes all powers and responsibilities of the former Federal Open Market Committee, eliminating private control of the nation's monetary system

The existing regional Federal Reserve Banks become Treasury Reserve Banks and continue clearinghouse operations and other bank service functions under the direction of the Office of the Comptroller of the Currency

All commercial banks must exchange their income-producing government obligations for treasury credit-notes (reduces the national debt)

Only treasury credit-notes may be held as bank reserves

Fundamental changes are imposed on the repayment of all outstanding fractional reserve loans on secured property-principal must be repaid before the monetizing-fee is paid (applies retroactively to existing mortgages reducing private debt)

A progressive federal excise tax is imposed on the privilege of making commercial loans of currency for profit

Commercial financial institutions such as credit unions are provided, subject to some restriction, with opportunities to operate with fractional reserves

Fiscal Policy Reform

Amends the existing federal income tax system

A national retail sales (excise) tax is imposed upon non-exempt retail activities of commerce (20 categories of exemptions covering most necessities of life)

The Internal Revenue Service is reorganized as the National Tax Service to administer the collection of the new tax

What NESARA Does Not Immediately Do

Eliminate all payroll taxes, such as Social Security and Medicare taxes

Eliminate constitutional excise taxes on regulated activities

Immediately eliminate the entire national debt

Immediately halt inflation (the economy needs some response time before inflation will disappear)

__________________________________________________________________________________________

108th CONGRESS

Second Session

H. R. ________________

To amend the Federal Reserve Act of 1913, as amended; and the Internal Revenue Code of 1939, as amended; in order to secure for the American people their unalienable right to Life, Liberty, and Property.

IN THE HOUSE OF REPRESENTATIVES

_____________________ for himself, _____________________,

_________________, _________________, _________________,

introduced the following bill; which was referred to the committee on ____________________.

A BILL

To amend the Federal Reserve Act to provide for the American people a constitutionally accurate, sound, safe, and honest medium of exchange; and,

To amend the Internal Revenue Code enacted on February 10, 1939, as amended, to abolish the collection of revenue based on income and to establish a constitutional tax system within the classes of imposts, excises and duties;

So that the endeavors of the American people in agriculture, industry and commerce may prosper.

TITLE: NATIONAL ECONOMIC STABILIZATION AND RECOVERY ACT

Be it enacted by the Senate and House of Representatives of the United States of America in Congress Assembled,

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108th CONGRESS

2nd Session

H. R. ________________

(This bill has not yet been introduced into Congress)

IN THE HOUSE OF REPRESENTATIVES

_____________________ for himself, _____________________,

_________________, _________________, _________________,

introduced the following bill; which was referred to the committee on

____________________

A BILL

To amend the Federal Reserve Act to provide for the American people a constitutionally accurate, sound, safe, and honest medium of exchange; and, To amend the Internal Revenue Code enacted on February 10, 1939, as amended, to abolish the Collection of revenue based on income and to establish a constitutional tax system within the classes of imposts,

excises and duties; So that the endeavors of the American people in agriculture, industry and commerce may prosper.

TITLE: NATIONAL ECONOMIC STABILIZATION AND RECOVERY ACT

Be it enacted by the Senate and House of Representatives of the United States of America in Congress Assembled,

______________________________________________________________________________________________________

The NESARA act itself

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Table of Contents

Purpose........................................................................................................................................................4

What is wrong with America?...................................................................................................................4

Can We Really “Fix” America? Can One Bill Repair The Damage? .......................................................4

Executive Summary ...................................................................................................................................5

Monetary Policy Reform..........................................................................................................................5

Fiscal Policy Reform................................................................................................................................5

What NESARA Does Not Immediately Do ..............................................................................................5

Detailed Summary-Part I Banking and Monetary Reform....................................................................6

Immediate Relief and Results ...................................................................................................................6

The Federal Reserve System .....................................................................................................................6

Monetary Policy .......................................................................................................................................6

Banking ....................................................................................................................................................7

Detailed Summary-Part II National Sales and Use Tax..........................................................................8

Immediate Relief and Results ...................................................................................................................8

The Income Tax .......................................................................................................................................8

Sales and Use Tax ....................................................................................................................................8

Part I. Banking and Monetary Reform...................................................................................................10

Section 1. Definitions.............................................................................................................................10

Section 2. Findings.................................................................................................................................13

Section 3. Congressional Control Of The United States Monetary System............................................14

Section 4. Provisions For United States Currency ..................................................................................14

Section 5. Reformation Of The Federal Reserve System........................................................................18

Section 6. Reformation Of The Federal Reserve Banks..........................................................................21

Section 7. Regulation Of Commercial Banks And Other Financial Institutions.....................................22

Section 8. Excise Tax Imposed On Monetization-Fee Or Interest Income .............................................24

Section 9. Regulation Of The Exchange Value Of Treasury Credit-Notes.............................................25

Section 10. Authorization For Limited Bank Charters............................................................................26

Section 11. Regulation Of Postal Money Orders ....................................................................................26

Section 12. Crime Defined And Punishment Established.......................................................................27

Section 13. All Inconsistent Acts Repealed ............................................................................................27

Part II. National Sales and Use Tax.........................................................................................................28

Section 1. Definitions.............................................................................................................................28

Section 2. Findings.................................................................................................................................30

Section 3. Federal Income Tax Abolished ..............................................................................................31

Section 4. Revision Of The Internal Revenue Service ............................................................................32

Section 5. National Sales And Use Tax Imposed....................................................................................32

Section 6. Liability For And Disposition Of The National Sales And Use Tax......................................34

Section 7. Compensation For Tax Policy Changes .................................................................................37

Section 8. Recovery Of Taxes, Penalty, And Interest .............................................................................37

Section 9. Crime Defined And Punishment Established.........................................................................40

Section 10. All Inconsistent Acts Repealed ............................................................................................41

Appendix A ...............................................................................................................................................42

Part I. Banking and Monetary Reform Explanation and Details.............................................................42

Appendix B ...............................................................................................................................................54

Part II. National Sales and Use Tax Explanation and Details .................................................................54

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Appendix C ...............................................................................................................................................66

Fair or Equitable?...................................................................................................................................66

Imagine Legislation That…....................................................................................................................67

Promotes Universal Home Ownership ................................................................................................67

Terminates or Drastically Reduces Existing Mortgage Debt ..............................................................69

Provides New Banking Rules That Are Equitable To All...................................................................70

Eliminates Federal Income Taxes .......................................................................................................71

Enables Single Parents to Support Their Families ..............................................................................72

Restores Financial Privacy ..................................................................................................................73

Restores Inner Cities as Vital Economic Areas...................................................................................74

Improves the Balance of Trade ...........................................................................................................75

Restores High-Paying Productive Jobs ...............................................................................................75

Increases Benefits to Senior Citizens ..................................................................................................76

Doubles the Average Standard of Living ............................................................................................77

Eliminates Bank Failures ....................................................................................................................78

Provides 500 Billion Dollars for Infrastructure Projects.....................................................................82

Makes the Public Responsible for Currency Creation ........................................................................83

Eliminates A Trillion Dollars of Public Debt......................................................................................83

Eliminates Inflation .............................................................................................................................84

Benefits Americans with an Unprecedented Economic Boom ...........................................................85

Provides a More Secure Future For All...............................................................................................85

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Purpose

• To provide monetary reform by amending the Federal Reserve Act of 1913.

• To provide fiscal reform by amending the Internal Revenue Code of 1939.

• To secure for the American people their unalienable right to Life, Liberty, and Property.

What is wrong with America?

• The income gap between the rich and poor continues to widen

• Earnings for the poorest fifth of American families rose less than 1% between 1988 and 1998

• Earnings for the richest fifth of American families rose more than 15% between 1988 and 1998

• Income tax preparation costs Americans more than $225 billion and more than 5 billion hours per year in nonproductive labor

• Social woes and problems continue to escalate

• Income tax laws continue to erode privacy rights

• Asset forfeitures continue to rise due to inequitable monetary policy and tax laws

• The American Dream is quickly disappearing

• Unsound monetary and fiscal policies encourage waste and graft

• Public and private debt continue to rise

• Current banking practices and policies no longer support the people but special interests

• Current monetary and fiscal policy provides no mechanism to stop or defeat inflation

Can We Really “Fix” America?

Can One Bill Repair The Damage?

NESARA will:

• Reduce social inequalities and problems by doubling the average standard of living

• Eliminate trillions of dollars of public and private debt

• Return control of the currency to the public

• Reduces the cost of using public currency

• Provide new banking rules that are equitable and fair to all

• Provide $500 billion of new public works projects

• Replace the income tax with a fair tax

• Improve the balance of trade problems

• Rebuild American industry with high-paying, productive jobs

• Eliminate inflation

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Executive Summary

Monetary Policy Reform

• Establishes three types of United States currency: standard silver coin, standard gold coin and treasury credit-notes (restores Constitutional currency)

• The United States Treasury buys and cancels all outstanding capital stock of the former Federal Reserve Banks

• The privately owned Federal Reserve System becomes a public entity, the United States Treasury Reserve System

• A new Board of Governors of the Treasury Reserve System uses a specific law-mandated plan to maintain and stabilize the exchange value of the currency

• The new Board assumes all powers and responsibilities of the former Federal Open Market Committee

• The existing regional Federal Reserve Banks become Treasury Reserve Banks and continue clearinghouse operations and other bank service functions under the direction of the Office of the Comptroller of the Currency

• All commercial banks must exchange their income-producing government obligations for treasury credit-notes (reduces the national debt)

• Only treasury credit-notes may be held as bank reserves

• Fundamental changes are imposed on the repayment of all outstanding fractional reserve loans on secured property-principal must be repaid before the monetizing-fee is paid (applies retroactively to existing mortgages reducing private debt)

• A progressive federal excise tax is imposed on the privilege of making commercial loans of currency for profit

• Commercial financial institutions such as credit unions are provided, subject to some restriction, with opportunities to operate with fractional reserves

Fiscal Policy Reform

• Amends the existing federal income tax system

• A national retail sales (excise) tax is imposed upon non-exempt retail activities of commerce (21 categories of exemptions covering most necessities of life)

• The Internal Revenue Service is reorganized as the National Tax Service to administer the collection of the new tax

What NESARA Does Not Immediately Do

• Eliminate all payroll taxes, such as Social Security and Medicare taxes

• Eliminate constitutional excise taxes on regulated activities

• Immediately eliminate the entire national debt

• Immediately halt inflation (the economy needs some response time before inflation will disappear)

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Detailed Summary-Part I Banking and Monetary Reform

Immediate Relief and Results

• Eliminates approximately $1 trillion of the nation's public debt

• Reduces future private debt by approximately $1 trillion

• Immediately eliminates some private debt, especially for many homeowners

The Federal Reserve System

• The Federal Reserve Act of 1913 is amended

• The Federal Reserve System is abolished and replaced by a new Treasury Reserve System

• Control of the currency is moved from private control of the Fed to public control of Congress and the new Treasury Reserve System

• Congress sets the standards for the new monetary system but the people create as much or as little currency as they need

• Functions of the Federal Open Market Committee are transferred to the Board of Governors of the new Treasury Reserve System

• A new mechanism, the Treasury Reserve Account, is created to provide the Treasury Reserve System Board of Governors a better method to fine-tune the money supply, effectively eliminating inflation

• The Treasury Reserve System Board of Governors will continue using the previous three mechanisms for controlling the money supply: 1. Setting reserve requirements. 2. Setting the national discount rate. 3. Purchasing U.S. Treasury securities on the open market.

• All U.S. Treasury securities purchased by the Treasury Reserve System Board of Governors will be immediately turned over to the U.S. Treasury and cancelled out of existence.

Monetary Policy

• People are provided with several alternatives for currency

• Constitutional currency is restored

• Currency becomes debt free as the people stop paying interest payments for their use of a public utility

• Unlike previous policy, the new Treasury Reserve Board is provided one very specific mandate: maintain a stable currency

• Expansion of the economy is returned to the free market

• Private coinage is encouraged

• Exchange ratios for the various currencies are published at least weekly

• Printing of redeemable gold and silver certificates is allowed

• Postal money orders are made available in denominations of gold and silver coin

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Banking

• Returns the banking industry to serving public interests

• For secured loans, compound interest is outlawed and replaced with a monetization fee

• Provides stricter banking controls by imposing excise taxes to discourage high or runaway monetization fees

• On secured loans obtained from a fractional reserve bank, principal must be paid in full before the bank begins collecting its monetization fee

• Eliminates the façade for banking insurance (FDIC)

• Except for fraud and criminal activities, virtually eliminates bank failures

• Banks are prohibited from using as reserves any commercial paper

• Only Treasury credit-notes can be used as bank reserves

• Banks are prohibited from purchasing government issued debt, effectively removing banks from influencing monetary policy

• Checking accounts against gold and silver deposits are prohibited

• Commingling of funds among the various money accounts without owner's permission is prohibited

• All currency deposits with banks are general warrant deposits and custody accounts.

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Detailed Summary-Part II National Sales and Use Tax

Immediate Relief and Results

• Workers maintain better control of their earnings

• Production is no longer taxed, just consumption

• Most of the necessities of life are not taxed

• Encourages production thus revitalizing industry in America

• Encourages rebuilding of inner cities

• Discourages wasteful uses of natural resources

• Exposes the true cost of government

• Greatly eliminates the struggle between tax “protesters” and bureaucracy

• Allows the “underground” to resurface and become a viable contribution to production of goods and services

• Greatly restricts the influence of special interests and lobbyists

The Income Tax

• The Income Tax Act of 1939 is amended

• People need no longer fear the IRS

• Billions of hours of nonproductive labor are eliminated

• Mounds of paper work are eliminated

• The cost of the income tax is no longer hidden and embedded in the cost of doing business and passed down the chain with the consumer paying the final tab

• Most likely eliminates state income tax plans because state income taxation piggybacks on federal income taxation

• The IRS is reformed into the National Tax Service

• Volumes of complicated tax code are history

• Eliminates personal income taxes

• Eliminates corporate income taxes

• Eliminates gift taxes and estate taxes

• Eliminates capital gains taxes

Sales and Use Tax

• Tax rate of 14%

• Government entities are exempt

• Government mandated expenses such as licenses, permits, passports, are exempt

• Sales of bullion, coin and currency are exempt

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• Sales made by or to nonprofit schools are exempt

• Sales of prescription drugs, medical supplies and services are exempt

• Real estate rents and leases are exempt

• Sales of groceries are exempt

• Sales of plants, livestock and fish used in the production of food for human consumption are exempt

• Insurance sales are exempt

• Segregated portions of labor in retail service contracts are exempt

• Incidental or occasional sales such as garage or rummage sales are exempt

• Sales for the purposes of recycling are exempt

• Meals provided by companies at company expense are exempt

• Sales that are nonprofit in nature are exempt

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Part I. Banking and Monetary Reform

Section 1. Definitions

Definitions for terms used in this part are equivalent to those of the United States Constitution and the Coinage Act of 1792 or are explicitly stipulated below.

Accounting unit dollar: Token dollar; imaginary accounting unit used to denominate United States currency.

Barter: Wealth traded by direct exchange.

Bill of credit: Paper document issued as legal tender by the government on its authority and credit, redeemable in specie at a future day, and designed to circulate as money.

Coin: A piece of metal with its commodity type, weight and fineness stated on its face; an item of intrinsic value based in the unconditional, historical domain and often used as a medium of exchange.

Credit: Imaginary demand. Reliance on the truth or reality of something; belief; faith.

Credit-note: Paper document denominated in token dollars; United States Treasury credit-note.

Currency: That which circulates as a medium of exchange; anything that is in immediate, continuous and widespread use as money.

Custody account: a fiduciary account of general warrant deposits whereby rights to deposited funds remain vested in the depositor.

Dollar: A unit of weight, as construed in the U.S. Constitution and in the Coinage Act of 1792, equal to 371 and 1/4 grains; equivalent to 24.0566 grams or 0.77344 troy ounces.

Eagle: A gold coin containing one troy ounce of gold; an easily recognizable standard United States coin which may be used as money.

Exchange value: Instantaneous parity of a thing at the time of the exchange.

Expediency: That which is apt or suitable to an end in view.

Federal Reserve Note: Paper document denominated in token dollars; a token note having only exchange value; a type of U.S. currency adopted by custom and through the imposition of legal tender laws; a direct obligation of the United States; fiat money; scrip.

Fiat money: Paper documents or token coins, normally issued by governments and made legal tender by fiat or statutory law, not redeemable in specie; an item of exchange value based in the conditional, future domain; accepted by the issuer as compensation for taxes, fees, duties or debts; accepted by others in anticipation of future exchanges.

Fiat: A sanction; decree.

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Free market: One in which any individual may exchange their products or services by competitive bidding, open to all, without constraint.

Fungible: Goods and commodities that are identical with other goods and commodities and of the same nature.

General warrant deposits: fungible deposits allowing banks to return property like-for-like.

Gold certificate: A document certifying that a like amount of its face denomination in (gold) eagles is on deposit with and held in trust for its immediate redemption at the U.S. Treasury or at a designated agent of the U.S. Treasury.

Gold eagle: Eagle.

Interest: Compensation paid to a creditor for loss of the use of their own currency.

Intrinsic value: Inherent value usually related to cost of production, more properly related to marginal utility.

Irredeemable: Not convertible into specie at the pleasure of the holder; inconvertible; not terminable by payment of the principal.

Lawful: Authorized; sanctioned; not contrary to nor forbidden by law; constitutional.

Lawful money: Lawful money of account; specie: silver dollars, eagles.

Legal: Done or performed in accordance with the forms and usages of law, or in a technical manner. An Act may be legal but, if not constitutional, it is not lawful.

Legal-tender: Default medium of exchange; forced use of a government specified medium of exchange when parties to a mercantile transaction fail to specify a specific medium of exchange.

Medium of exchange: Currency; an intermediate used during trade or commerce; an expediency accepted in an exchange; that which is used as money in an exchange.

Monetization fee: Payment required for the monetization of debt; pseudo interest.

Money: A psychological creation; a concept; the mental image of that which is used as a medium of exchange.

Note: Certified claim on wealth; a written or printed paper acknowledging a debt and promising payment.

Payment: Discharge of an obligation or debt by delivery of value, usually lawful money. The execution and delivery of negotiable papers [instruments] is not payment unless it is accepted by the parties in that sense. (UCC § 3-410)

Scrip: Provisional certificate; evidence that the holder or bearer is entitled to receive something.

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Seigniorage: The difference, which may be positive or negative, between the face value of specie (coin), silver or gold certificates, or fiat money and its commodity value in a free market.

Silver dollar: A coin containing a dollar weight-371 and 1/4 grains-of silver; an easily recognizable standard United States coin which may be used as money.

Silver certificate: A document certifying that a like amount of its face denomination in dollars of coined silver is on deposit with and held in trust for its immediate redemption at the U.S. Treasury or at a designated agent of the U.S. Treasury.

Source: Point of origin or creation.

Specie: Coin, usually of silver or gold.

Tender: Any offer to settle a debt or obligation with any accepted medium of exchange accompanied by means for fulfillment of that offer.

Token coin: A piece of metal intended for use as currency, issued at a nominal or face value normally far in excess of its commodity value; United States clad coins and subsidiary coins of base alloys.

Token dollar: Imaginary accounting unit dollar; debt; an artificial creation, irredeemable in specie.

Token: Something that serves as what it is not.

Treasury bill: Obligation of the U.S. Treasury for a specified term of three, six or twelve months from the date of issue, bearing no interest but sold at a discount.

Treasury bond: Paper document issued by the government as evidence of long-term indebtedness.

Treasury certificate: Obligation of the U.S. Treasury generally maturing in one year on which interest is paid by coupon.

Treasury credit-note: United States currency; paper document denominated in token dollars, designed to circulate as money, having exchange value, irredeemable, with limited legal-tender character, authorized by the Congress of the United States, issued by the U.S. Treasury bearing no interest and spent into circulation through voluntary acceptance; an obligation of the United States; fiat money.

Treasury note: Obligation of the U.S. Treasury, with a maturity of one to five years and interest paid by coupon.

Unit: Any specified or determinable amount or quantity adopted as a standard of measurement. Unity; one.

Units of Measure-Common Equivalents: Accurate to one part per million or better; included for reference only;

• 1 pound, Troy = 373.2417216 grams;

• 1 pound, Troy = 12 ounces, Troy;

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• 1 pound, Troy = 5,760 grains;

• 1 ounce, Troy = 480 grains;

• 1 grain = 0.06479891 grams

Section 2. Findings

The Congress finds that -

(1) an excessive debt, both public and private, is the cause of much of this nation's economic distress.

(2) outdated banking, monetary and fiscal practices, supported by national statutes, codes and regulations, led to the creation of a large portion of this debt.

(3) the nation's privately owned central banks of the Federal Reserve System exercise significant control over the national economy through manipulation of monetary policy.

(4) the private character of the Federal Reserve System was recognized in the Act creating the system when Congress reserved to itself “[t]he rights to amend, alter, or repeal” the authorizing legislation. (38 Stat. 251, 275)

(5) the reservation of “[t]he right to amend, alter, or repeal” the Act establishing the Federal Reserve System displays Congressional concern to obviate any possibility that the private parties comprising the Federal Reserve System might acquire, directly in or through application of the statute, any rights, powers, privileges or immunities that the courts could later hold were constitutionally immutable.

(6) the federal courts have also recognized that, although the Federal Reserve System may perform various functions purportedly on behalf of the national government, it is not an agency of the United States. Lewis v. United States, 680 F.2d 1239, 1240 (9th Cir. 1982)

(7) the Supreme Court of the United States noted in 1896 that “National banks are instrumentalities of the Federal government, created for a public purpose, and as such necessarily subject to the paramount authority of the United States.” Davis v. Elmira Savings, 161 U.S. 275

(8) the Board of Governors of the Federal Reserve System and the Federal Open Market Committee were given a mandate to “maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”

(9) the performance of the Federal Reserve System, particularly in pursuit of its mandate to “promote …stable prices and moderate long-term interest rates,” has been considerably less than satisfactory. A 1950 dollar is worth only 18 cents in 1990, losing 82 percent of its value in 40 years.

(10) changes in the economic behavior of the American people, particularly since World War II, have greatly reduced the ability of the Federal Reserve System to regulate monetary policy.

(11) Federal Reserve System regulators struggle to maintain stability, hampered by conflicting goals and grossly inadequate monetary tools.

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The National Economic Stabilization and Recovery Act

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(12) the authority of Congress to issue irredeemable, legal tender paper currency, or to delegate such a power, finds no basis in Article I, § 8, cl. 5 of the United States Constitution, which grants Congress the power “To coin Money, [and] regulate the Value thereof.”

(13) the co