Constitutional MoneyThe Rotary Club of New York May 2014

Three Questions:1. Is the Dollar a Constitutional unit of

measure?

2. What is One Dollar?

3. What happens when Constitutional monetary standards are forsaken?

Money of the ConstitutionArticle I Section 8, Clause 5[The Congress shall have Power] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

Article I Section 9, Clause 1… a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.

Article I Section 10, Clause 1No State shall … make any Thing but gold and silver coin a Tender in Payments of Debts.

Amendment VIIIn Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved …

The Dollar is but one of several Constitutional Units of Measure:

Unit of Measure

Times Stated Definition when the Constitution was Ratified

Year 33 One revolution of the earth around the sun’s axis

Day 21 One revolution of the earth around it’s own axis

Hour 1 15 degree rotation of the earth around it’s own axis

Mile 1 A unit of linear measure equal to 5,280 feet

Dollar 2 A coin containing 371.25 grains of silver

Eisner v. Macomber, 252 U.S. 189, 206 (1920)Congress cannot by legislation alter the Constitution, from which

alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.

What is One Dollar?

One Dollar is a standard unit of measurement

Weight: 16 Ounces = 1 Pound * 2000 = 1 Ton

Length: 1 Inch * 12 = 1 Foot * 3 = 1 Yard

Analogous

24 Hours = 1 Day * 7 = 1 WeekTime:

Money: 371 ¼ grains of Silver minted = $1.00

Dollars or Units – each to be of the value of a Spanish milled dollar as the same is now current and to contain three hundred and seventy-one grains and four sixteenth parts (371 ¼) of a grain of pure … silver

Does the Constitutional Dollar standard exist today?

• Yes! How do we know that?

• The number $1.292929292.It is derived from the constitutional dollar unit.

Title 31 U.S.C. §5116(b)(2): The Secretary shall sell silver under conditions the Secretary considers appropriate for at least $1.292929292 a fine troy ounce.

Congress’ Responsibility to Regulate the Value of Coin

Key:

1 troy oz = 480 grains1 troy oz = 31.1034 grams1 troy oz = 1.09714 oz

1 Eagle (10 Dollar)(247.5 grains Gold)

1 Dollar(371.25 grains Silver)

X 10 =(3,712.5 grains

of Silver)

1 Cent(46.3 grainsof Copper)

X 100 =(4,630 grains

of Copper)

1 Dollar(371.25 grains Silver)

Congress has the responsibility to regulate the value of all minted coins to the fixed pure metal Dollar standard

Supreme Court - Coin Money is a Constitutional Requirement• United States v. Marigold, 50 U.S. (9 How.) 560, 567-

568 (1850):

“ [Congress has] the duty of creating a pure metallic standard of value throughout the Union. The power of coining money and of regulating its value was delegated to Congress by the Constitution for … preserving the uniformity and purity of such standard of value * * *

"If the medium could immediately be expelled, and substituted by one it had neither created, estimated, nor authorized one possessing no intrinsic value then the power conferred by the Constitution would be useless wholly fruitless of every end it was designed to accomplish.

1792 Penny

Marigold was cited in: International Bancorp Llc v. Societe Des Bains De Mer et Du Cercle Des, 329 F. 3d 359, May 19, 2003

What happens when Constitutional monetary standards are forsaken?

1. An unrealized loss of capital and property;

2. A loss of real economic value;

3. The loss of the full economic impact of automation;

Property = # Lawful Money $

($)13,500

=1957

1,600 Sq. Ft. Home

= # Egg Cartons(Brown Eggs)

=

~37,700

# Legal Tender $

$13,500

=

U.S. Silver Certificate

No LawfulMoney Available

=

~37,700 “$85,400”

Fed. Res. Bank Note

1982

1,600 Sq. Ft. Home

=

($)13,500

=

~37,700

2007

1,600 Sq. Ft. Home“$175,000”

Fed. Res. Bank Note

=

Unrealized losses of capital and property

Buy1957

Sell2007

1,600 Sq. Ft. Home

No Cartons of Eggs Gain

No Gain No Tax Due

No Lawful Money Gain

No Gain No Tax Due

Federal Reserve Note“Gain” of $161,500

Alleged Tax Due ~FRN$55,000

After FRN Tax results in aLawful Money Property

Loss of ($)4,269

After FRN Tax results in aPhysical Egg Carton Loss of

11,922 Cartons of Eggs

Property

($)13,500

=

=

($)13,500

= # Lawful Money $

The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in a physical property loss with the perception of an actual gain.

=

=

~37,700

~37,700

= # Egg Cartons(Brown Eggs)

1,600 Sq. Ft. Home

$13,500

$175,000

=

# Legal Tender $

U.S. Silver Certificate

Fed. Res. Bank Note

=

Quiet Theft!

Stock = # Lawful Money $

$1,942.00

=

= # Egg Cartons(Brown Eggs)

=

~5,424

# Legal Tender $

$1,942.00

=U.S. Silver Certificate

No LawfulMoney Available

=

~4,266 “$4,884”

Fed. Res. Bank Note

=

$2,338.56

=

~6,571 “$30,501.00”

Fed. Res. Bank Note

=

A loss of real economic value

1962

4 Shares IBM Stock

1982

75 Shares IBM Stock after splits

2007

300 Shares IBM Stock after splits

IBM Stock Splits: 1964-05-18 [5:4], 1966-05-18 [3:2], 1968-04-23 [2:1], May 29, 1973 [5:4], Jun 1, 1979 [4:1], May 28, 1997 [2:1], May 27, 1999 [2:1]

Buy1962

Sell2007

IBM Stock

17% Gain in Eggs Cartons

Tax Due ~172 Egg Cartons

17% Lawful Money Gain

Tax Due $59.48

Federal Reserve Note“94% Gain” of $28,559

Alleged Tax Due (15%) ~FRN$4283.85

FRN Inflation results in a83% tax rate or $328.45 of the $396.56 of the purported gain

After FRN Tax results in aPhysical Egg Carton Loss of

923 Cartons of Eggs

Stock

$1,942.00

=

=

$2,338.56

= # Lawful Money $

The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in an 83% tax rate with the perception of 15% tax rate.

=

=

~5,424

~6,571

= # Egg Cartons(Brown Eggs)

IBM Stock

$1,942.00

“$30,501.00”

=

# Legal Tender $

U.S. Silver Certificate

Fed. Res. Bank Note

=

Quiet Theft!

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 610

2

4

6

8

10

12

Inflation adj 3.2%cost/unit

The loss of the full economic impact of automation.

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 610

2

4

6

8

10

12

Inflation adj 3.2%cost/unit

However, lower cost of production often results in lower revenue. Thus, to increase revenue a manufacture either has to increase sales or add more features to maintain revenue.

■ Sale price ■ Inflated Sale price

Automation lowers the cost of production. Inflation however ensures the appearance of increased revenue while providing bankers unearned profits (red)

Example – Ford Mustang

1965 Features

• Convertible

• 170 CID /101 HP 6 cylinder engine

• Drum brakes

• Bucket Seats with lap belt restraint

• No air conditioner

• AM Radio

$2,557

Example – Ford Mustang

2007 Features

• Convertible

• 4.0 L /210 HP 6 cylinder engine SOHC

• Ventilated disc brakes

• Bucket Seats with Air Bags

• Air conditioner

• 120W Stereo / iPod input

$31,700

The Lawful Money Cost of a Ford Mustang has Remained Constant

1965 =

U.S. Silver Certificate

($) 2,557

$31,700

Fed. Res. Bank Note

=

($) 2,557

=

($)2,557

=2007

It’s only inflation that has given the appearance that the sales price and Ford’s revenues have been increasing.

Answers:1. Is the Dollar is a Constitutional unit of

measure? Yes.

2. What is One Dollar? A coin containing 371.25 grains of pure silver.

3. What happens when Constitutional monetary standards are forsaken? The citizens are unknowingly defrauded.

Thank YouQuestions and Answers

Supreme Court - Coin Money is a Constitutional Requirement

• United States v. Marigold, 50 U.S. (9 How.) 560, 567-568 (1850):

“They [Congress] appertain rather to the execution of an important trust invested by the Constitution, and to the obligation to fulfill that trust on the part of the government, namely, the trust and the duty of creating and maintaining a uniform and pure metallic standard of value throughout the Union. The power of coining money and of regulating its value was delegated to Congress by the Constitution for the very purpose, as assigned by the framers of that instrument, of creating and preserving the uniformity and purity of such standard of value * * *

"If the medium which the government was authorized to create and establish could immediately be expelled, and substituted by one it had neither created, estimated, nor authorized one possessing no intrinsic value then the power conferred by the Constitution would be useless wholly fruitless of every end it was designed to accomplish. Whatever functions Congress are, by the Constitution, authorized to perform, they are, when the public good requires it, bound to perform; and on this principle, having emitted a circulating medium, a standard of value indispensable for the purposes of the community, and for the action of the government itself, they are accordingly authorized and bound in duty to prevent its debasement and expulsion, and the destruction of the general confidence and convenience …." 1792 Penny

Marigold was recently cited in: International Bancorp Llc v. Societe Des Bains De Mer et Du Cercle Des, 329 F. 3d 359, May 19, 2003 for a different reason but still stands affirming congressional responsibility to maintain a pure metallic monetary standard;