Time: Sat Mar 29 20:40:02 1997
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Date: Sat, 29 Mar 1997 20:26:56 -0800
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From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: [TL] WHAT IS MONEY? [1/2]
<snip>
>
>>Greetings to All,
>>
>>Just what is money, anyway?
>>
>> MONEY
>>
>>1. A promissory note is a written promise by
>> one person to pay to another or to bearer
>> a fixed sum of money.
>> See:
>> Davis v. Spencer, 267 Ill
>> 57; 107 NE 826;
>> Jencks v. Rice, 119 Iowa 451;
>> Cherry v. Sprague, 187 Mass 113.
>>
>>2. As a decree by a court of the U.S. for
>> the payment of money can be made only for
>> the payment of so many dollars of some
>> specie of money that is made lawful money
>> by a statute of the U.S., it follows that
>> a recovery upon such a promissory note or
>> contract must be for some dollars in gold
>> and silver coins.
>> See:
>> The Edith, D.C. N.Y. (1875), 5 Ben.
>> 144, 8 Fed. Cases 4,281;
>> Forbes v. Murray, D.C. N.Y. (1869),
>> 3 Ben. 497, 9 Fed. Cases 4,928.
>>
>>3. The general rule is that a final judgment
>> for money must specify the amount
>> awarded.
>> See:
>> U.S. v. F. & M. Shaefer Brewing, 356
>> US 227;
>> 45 Am Jur 2d 81.
>>
>>4. An act by the legislature of Alabama,
>> September 30, 1920, page 36, providing
>> when a check is presented or forwarded to
>> the payee bank for payment, it may at its
>> option pay or remit the same in money or
>> in exchange drawn on its reserves.
>> However, it is unconstitutional and void
>> as an attempt by the state to make a
>> class of debts payable at the option of
>> the debtor in something other than gold
>> and silver coin.
>> See:
>> Capitol Grain and Feed Co v. Federal
>> Reserve Bank of Atlanta, D.C. Ga.
>> (1925), 3 F.2d 614, 269 US 589, 70
>> L Ed 427.
>>
>>5. As bills of credit were entirely
>> abolished, the paper money of the state
>> banks was the only currency or
>> circulating medium to which the
>> prohibition (Art. 1, Sec. 10) could have
>> had any application.
>> See:
>> Veazie Bank v. Fenno, 75 US 533.
>> (What is checkbook credit, lines of
>> credit, etc?)
>>
>>6. Congress was vested with the power to
>> borrow money and that the promise of
>> payment having been given, no authority
>> remained to alter or destroy the original
>> promise.
>> See:
>> Perry v. U.S., 294 US 330.
>>
>>7. The states are not forbidden to issue
>> coupons receivable for taxes, nor execute
>> instruments binding themselves to pay
>> money at a future day for services
>> rendered or money borrowed.
>> See:
>> Poindexter v. Greenbow, 114 US 70;
>> Chaffin v. Taylor, 116 US 567;
>> Houston & Texas Central R.R. v.
>> Texas, 177 US 66. (If this is true,
>> then why do states borrow from
>> banks? States issue bonds and the
>> banks buy the bonds by creating a
>> new demand deposit and nothing is
>> deposited. When it comes time to
>> pay the bonds, the state acts as a
>> collection agent for the bank.)
>>
>>8. Neither the president nor the cashier of
>> a bank has a right to accept anything but
>> money in payment of an obligation due the
>> bank.
>> See:
>> Aliquippa National Bank v. Harvey,
>> 12 A.2d 409, 340 Pa 223;
>> First National Bank of Mt. Holley
>> Springs v. Cumbler, 21 A.2d 120;
>> Re Bowen 46 F.Supp 631, 16 A.2d 409.
>>
>>9. "Some years ago a new type of installment
>> credit appeared in banks throughout the
>> country. It became known as check credit
>> or revolving check credit. Basically, it
>> provided that those eligible for such
>> credit be granted a line of credit in the
>> agreed amount. In order to use that line,
>> the borrower needed merely to write
>> checks. The checks were special checks,
>> and were NOT actually checking accounts.
>> The check was merely the instrument by
>> which the loan account was activated.
>> Usually it did not go through all the
>> processes that an ORDINARY check does
>> once it reaches the bank. However, it had
>> the APPEARANCE of an ORDINARY check, and
>> was so used by the customer and the
>> person to whom he gave the check."
>> Source: "The Bankers Handbook" (?
>> edition), page 530. (Does the bank
>> disclose this information to you? It
>> should be quite important for you to know
>> that the bank just created a bookkeeping
>> entry to create the "loan", and that the
>> checks were not actually checks, but had
>> the appearance of checks. This is what is
>> known as a common law cheat and should be
>> in violation of Fair Trade Practices
>> because it gives banks a much greater
>> advantage in business than you or I, or
>> other businesses.)
>> See:
>> Title 15, Sec. 1635 of Chap. 41.
>>
>>10. Unless there is what the law considers a
>> valuable consideration, it will not be
>> sufficient to maintain an action. And
>> there is a distinction between a valuable
>> consideration, other than money, and a
>> money consideration. While in the
>> "former" case the slightest consideration
>> will support a promise (consideration
>> other than money) to pay the largest
>> amount to the full extent of the promise,
>> in the latter the consideration will
>> support a promise only to the extent of
>> the money forming the consideration. The
>> law leaves the measure of a valuable
>> consideration other than money, for a
>> promise to pay, to the parties to the
>> contract; but money being the standard of
>> value, is not the subject to be changed
>> by contract, and will support a promise
>> to pay money only to the extent of the
>> amount of the consideration.
>> See:
>> Sawyer v. McLouth, 46 Barb 350.
>>
>>11. The term "tender" as used in the books,
>> denotes a legal OFFER, one which one
>> party is under obligation to make and the
>> other bound to accept.
>> See:
>> Duluth v. Knowlton, 42 Minn. 229;
>> Patnote v. Sanders, 41 Vt. 66.
>>
>>12. The promissory note, even when payable on
>> demand and fully secured, is still, as
>> its name implies, only a PROMISE to pay,
>> and does not represent the paying out or
>> reduction of assets.
>> See:
>> Don E. Williams Co. v. Commissioner
>> of IRS, 51 L.Ed. 2d 48 (Feb. 22,
>> 1977).
>>
>>13. Money does not embrace notes (promises to
>> pay money).
>> See:
>> Lane v. Railey;
>> U.S. v. Wells;
>> Devenny v. Devenny;
>> State v. Hoke;
>> Hamilton v. State; etc.. (Since a
>> Federal Reserve Note is not even a
>> note [a promise to pay], money
>> cannot embrace a Federal Reserve
>> note.)
>>
>>14. An agent (clerk) has no implied authority
>> to receive anything else than MONEY in
>> satisfaction of a debt due his principal.
>> He cannot, therefore, take payment in a
>> check.
>> See:
>> Hall v. Storrs, 7 Wis. 217;
>> Buckwalter v. Craig, 55 Mo. 71.
>>
>>15. Payment of debts is
>> imperative/axiomatic/essential for the
>> right of contract/property to exist, for
>> without payment (delivery of money), the
>> debt still exists.
>> See:
>> Stanek v. White, 215 NW 784.
>>
>>16. It is the general rule that a pledger,
>> whose tender (offer) has been refused,
>> will not be granted affirmative relief of
>> an equitable nature, unless he has kept
>> the tender good or at least comes before
>> the court in an attitude of willingness
>> to pay what is due him.
>> See:
>> Norton v. Baxter, 41 Minn. d 146;
>> Tuthill v. Morris, 81 NY 94.
>>
>>17. Negotiable note must be promise to pay
>> money.
>> See:
>> Roads v. Webb, 91 Me 410. (Federal
>> Reserve Notes are not money.)
>>
>>18. Federal Reserve notes may be refused.
>> See:
>> MacLeod v. Hoover, 105 So 205, 159
>> La 244.
>>
>>19. The only substances ever declared as
>> money within the U.S. were gold and
>> silver, in coin form, with copper/nickel
>> serving in token capacity only.
>> See:
>> 12 USCA 152 re. "lawful money" and
>> Coinage Act of April 2, 1792, at
>> Sections 11, 16, & 20;
>> re. copper/nickel tokens, see Sec.
>> 9, and 31 USCA 460.
>>
>>20. A legal tender, when made, must be kept
>> good according to the rules of the common
>> law.
>> See:
>> William Wolf Co. v. Canadian R.R.
>> Co., 56 Pac. Rep 453.
>>
>>21. It has been held that if the instrument
>> recites on its face its consideration,
>> the consideration must be proved.
>> See:
>> Smith v. Doherty, 60 SW 380, 109 Ky
>> 616.
>>
>>22. Where the instrument sued upon is
>> non-negotiable, plaintiff must prove its
>> consideration.
>> See:
>> Shubert Theatrical Co. v. Dalton,
>> 167 NY S 332.
>>
>>23. A promissory note is defined as an
>> unconditional promise to pay a sum
>> certain in dollars.
>> See:
>> Regulation A, Sec. 4 (1005) (a)
>> Federal Reserve Act. (Dollars =
>> money, not Federal Reserve notes.)
>>
>>24. Money imports value.
>> See:
>> Neufield v. U.S., 118 F.2d 375.
>> (What value has a piece of paper
>> with green ink on it, especially
>> when it is redeemable in no-thing?)
>>
>>25. Money has value only by law and not by
>> nature so that a conviction of those who
>> use it is sufficient to deprive it of its
>> value and of its purchasing power.
>> See:
>> Incitti v. Ferrante, 175 A 908.
>>
>>26. When a contract is agreed to be paid in
>> dollars, a payment in money is meant and
>> not the transfer of notes.
>> See:
>> Simon v. Douglas, 225 SW 721; 189 Ky
>> 644.
>>
>>27. Income must be money or that which is
>> convertible into money.
>> See:
>> Snyders Estate, 31 A.2d 132, 136;
>> 346 Pa 615. (Is any Federal Reserve
>> note convertible at par or
>> otherwise, through a bank, for
>> money?)
>>
>>28. Monetary value means value calculated on
>> the basis of $1 for an amount of silver
>> or gold equal to the amount at the time
>> contained in the standard silver dollar
>> or gold dollar.
>> See:
>> USCA Title 31, Chap. 8, Sec. 448(b)
>> (Gold and silver have a value lies
>> in and of themselves -- notes do
>> not.)
>>
>>29. Money is a commodity, having a value of
>> its own. It is a common measure of
>> value. It has change ability.
>> See:
>> U.S. v. Gellman, D.C. Minn. 44
>> F.Supp. 360. (Gold and silver are
>> commodities and have a value in and
>> of themselves -- notes are not
>> commodities and have no value in and
>> of themselves. Granted they are
>> speculated upon in the money markets
>> but that does not mean they have a
>> value in and of themselves. Their
>> value lies in the confidence of the
>> people, not in the thing itself.)
>>
>>30. Money is defined as meaning a
>> representative standard or measure of
>> value.
>> See:
>> Jones v. Overstreet, 4 T.B. Mon.
>> 547.
>>
>>31. The courts have found occasion to decide
>> that the pleading did not raise certain
>> issues such as: want of consideration
>> See:
>> Sopp v. Linfrand, 36 P.2d 794;
>> negotiability Banca Commission Italiana
>> Dr. Genova v. P. Schlegal Co., 80 P 414;
>> ownership Sheffield v. Hatch, 135 So 165);
>> payment Minor v. Carpenter, 152 P 737.
>>
>>32. Checkbook money is not legal tender.
>> See:
>> Story of Checks, Federal Reserve
>> Bank of NY, p 20.
>>
>>33. Commercial banks are important financial
>> institutions because they can create
>> money--checkbook money.
>> See:
>> Money's Economic Balance, Federal
>> Reserve Bank of NY, P 17 (8th ed.,
>> 1979).
>>
>>34. A check is defined as a draft or order
>> upon a bank, purporting to be drawn upon
>> a deposit of funds for the payment of a
>> certain sum of money.
>> See:
>> Federal Reserve Act, Reg. J, Sec. 3
>> (12). (Money is not notes.)
>>
>>35. Nothing contained in this chapter shall
>> impair the redeemability of any currency
>> of the United States.
>> See:
>> 31 USC 9?6. (If currency has any
>> redeemability -- where?)
>>
>>36. Bank notes are promissory notes of a
>> bank, payable to bearer. They are a good
>> tender unless objected to at the time
>> because not money.
>> See:
>> Parsons Laws of Business, Page 172.
>> (Anything is acceptable as a tender
>> unless objected to.)
>>
>>37. It cannot be doubted that under the
>> Constitution the power to provide a
>> circulating of coins is given to
>> Congress. And it is settled by the
>> uniform practice of the government and
>> repeated decisions, that Congress may
>> constitutionally authorize the omission
>> of bills of credit. Having this in the
>> exercise of undisputed constitutional
>> power undertaken to provide a currency
>> for the whole country, it cannot be
>> questioned that Congress may
>> constitutionally secure the benefit of it
>> to the people by appropriate legislation.
>> To this end, Congress has denied the
>> quality of legal tender to foreign coins,
>> and has provided by law against the
>> imposition of counterfeit and base coin
>
><<< Continued to next message >>>
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