Judge Mahoney's orders in First National Bank of Montgomery v. Jerome Daly:
1969-Mahoney-ruling.pdf- (269.75 KiB) Downloaded 86 times
(The page is no longer online, but I got it from the Google cache.)
Excerpts:
Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of their interlocking activity and practices, and both being Banking Institutions Incorporated under the laws of the United States, are in law to be treated as one and the same bank, did create the entire $14,000 in money or credit upon its own books by bookkeeping entry. That this was the Consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created It. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note . . .
The Federal Reserve and National Banks exercise an exclusive monopoly and privilege of creating credit and issuing their notes at the expense of the public, which does not receive a fair equivalent. This scheme is obliquely designed for the benefit of an idle monopoly to rob, blackmail and oppress the producers of wealth. . . It has defied the lawfully Constituted Government . . .
Slavery and all its incidents, including Peonage, thralldom and debt created by fraud is universally prohibited in the United States. This case represents but another form of Slavery by the Bankers.
JUDGMENT AND DETERMINATION
1. That the Federal Reserve Banking Corporation is a United States Corporation with twelve banks throughout the United States. That the First National Bank of Montgomery is also a United States Corporation, incorporated and existing under the laws of the United States and is a member of the Federal Reserve System.
2. That because of the interlocking control activities, transactions and practices, the Federal Reserve Banks and the National Banks are for all practical purposes, in the law, one and the same.
3. As is evidenced from the book "The Federal Reserve System; Its purpose and Function", put out by the Board of Governors of the Federal Reserve System and other evidence adduced herein, the Federal Reserve Banks and National Banks create money and credit upon their books and exercise the ultimate of expanding and reducing the supply of money or credit in these United States.
This creation of money or credit upon the Books of the Banks constitutes the creation of fiat money by bookkeeping entry.
Ninety percent or more of the credit never leaves the books of the Banks so they need produce no specie as backing.
When the Federal Reserve Banks and National Banks acquire United States Bonds and Securities, State Bonds and Securities, State Subdivision Bonds and Securities, mortgages on private Real property and mortgages on private personal property, the said banks create the money and credit upon their books by bookkeeping entry. The first time that the money comes into existence is when they create it. The banks create it out of nothing. No substantial fund of gold or silver is back of it, or any fund at all . . .
MOST important for your defense if a bank sues you:
C. The sole consideration paid for the One Dollar Federal Reserve Notes is in the neighborhood of nine-tenths of one cent, and therefore, there is no lawful consideration behind said Notes.
And that's if they actually paid for PRINTED money. Most debt is created by accounting entries.