ABOUT THE AUTHOR: June Grem is a native Chicagoan. She received an A.B. degree from Stanford University and has worked as an insurance underwriter, secretary, researcher and public speaker. In 1971 she organized Enterprise Publications, Inc. and has been its president since that time. She is married to a physician and is the mother of four children. She has been active in girl scout work, has received the Congress of Freedom award and is listed in the Dictionary of International Biography, Who's Who in the Midwest and Who's Who of American Women. Despite a busy schedule as a homemaker, she found time to become active in the stock market as a technical analyst and chartist. It was through her knowledge of how the stock market operated that she became aware of the Federal Reserve Bank's role in our economy. Everyone actively engaged in the stock market keeps one eye on the Open Market Committee of the Federal Reserve Bank. It is through their manipulations of interest and discount rates, as well as stock margin requirements, that the market is moved up or down, thus ultimately affecting the financial and economic fortunes of our entire nation. A more penetrating analysis of the forces which control the market led to an investigation of our money system. The results revealed a sinister, well-organized and almost unknown plot to gain control of the entire world through the issuance and control of money. These operations have been shrouded in such, secrecy that very few people either know or suspect that the same forces which control our money, stock market and economy also control the world-wide revolutionary movement. It is hoped that when people gain an understanding of this vitally important subject of money issuance and control, an informed citizenry will take the necessary steps to reconstruct society on the basis of reason, constitutional law and peace and prosperity for all of our citizens. If America is to survive as a free nation, we must resist all attempts to throw us into a world monetary system. iv Dedication To Mr Peter Cook Who is, as yet, unrecognized by many as one of the greatest living monetary analysts of our times. v CONTENTS Chapter Page Foreword ix I. THE LIBERTY AMENDMENT 1 The Liberty Amendment 5 Section I Promises to get Government out of Business 5 II. DOES THE UNITED STATES GOVERNMENT OWN THE FEDERAL RESERVE BANKS? 7 Department of the Treasury 7 What Would Getting the Government Out Of The Banking Business Mean to You? 9 Operations of the Federal Reserve System 12 This Part of the Earnings Picture is not Generally Known to the Public 13 The Board of Governors 16 List of Government Securities Dealers Reporting to the Market Statistics Division of the Federal Reserve Bank of New York 17 The Open Market Committee 19 III. A REVIEW OF SECTION II OF THE LIBERTY AMENDMENT 22 IV. A REVIEW OF SECTION III OF THE LIBERTY AMENDMENT 23 Text of H.R. 17140 23 V. JERRY VOORHIS AND HIS MONEY BILLS 26 VI. COMPANION LEGISLATION 29 VII. A BRIEF ANALYSIS OF THE MONEY BILLS 30 No Constitutional Amendment is Necessary 32 About the Income Tax 35 VIII. THE NEW MONEY SYSTEM 47 vii Constitutional Money Bill 47 How Will the New Money System Work? 51 Foreign Investments in the United States 55 United States Government Financing 56 How Would the Government Finance its Own Activities? 57 IX. PROGRAM FOR SURVIVAL 61 viii FOREWORD Everybody hates taxes, but throughout history death and taxes have both been accepted as inevitable. However, when taxes approach the confiscatory level there is bound to be opposition. And so it was in California. When Proposition 13, which limited taxes on property was passed overwhelmingly, everybody in the country hailed this great victory. At last the voice of the people had been heard loud and clear and the politicians "got the message." Would any politician dare to oppose tax reduction or the Liberty Amendment, which would phase out the income tax and compel the federal government to cease competing with private enterprise, especially in the face of an imminent nationwide tax revolt? The Liberty Amendment provides that during a three year period, all business enterprises not specified by the Constitution would be sold back to the public. At the end of this time the 16th (Income Tax) Amendment would stand repealed. We wonder who, except the big banks, could afford to buy these money-losing government enterprises. We also wonder what other activities the Insiders have planned for the interim three year period, should the Liberty Amendment be adopted. Tax reduction and limitation ideas have begun to mushroom in other states and even now, before Congress there is a bill in committee to abolish the income tax. This is House Joint Resolution 23, or the Liberty Amendment. The big question: Is all this a victory or defeat? We must be wary of the sly maneuvers of the establishment and ask ourselves whether or not the whole fanfare regarding Proposition 13 was planned by the Insiders or was it a spontaneous rebellion by the people. The overwhelming majority of the people involved were concerned with just one thing. Reducing the taxes on their homes which had become so oppressive that many people were obliged to give them up. These people were honest, ordinary citizen tax-payers who believed that this was THE METHOD of finally controlling wild government spending. It was also an expression of rebellion against bureaucratic intrusions in their lives. Howard Jarvis, the man who masterminded Proposition 13, ix has become a national hero. His associate, Paul Gann, is travelling around the country urging the support of a Constitutional Convention which is designed to put a "new constitution" into effect. We wonder if this constitution (or non-constitution) is the one that has been prepared by the Center for the Study of Democratic Institutions, a misnomer if there ever was one. They are located at P.O. Box 4068, Santa Barbara, Ca. 93103, Phone: (805) 969-3281. The Center formerly had offices in New York City and Chicago which have now been closed. Presumably their preliminary work has been completed. The Center for the Study of Democratic Institutions has been funded by foundation money and has been working on this Soviet- style "constitution" for years. It will effectively cancel all our liberties and transfer total power to government. The "new constitution" or non-constitution, would divide the present regions (formerly states) into "republics." The only source of revenue mentioned in the Center's non-constitution is from corporate and individual incomes. No mention is made of a money system, but it is presumed that the present debt-money system will be retained. What banker or Insider would give up this wonderful plunder! If the Liberty Amendment is passed, the Constitutional Convention will have provided us with a new form of income tax through the Center's non-constitution, which will, no doubt, take effect as soon as it is passed. This will render our present Constitution valueless and of no effect. Hence, passage of the Liberty Amendment would also be meaningless. It would, however, divert attention from the Insiders' gear shifting into new and better forms of individual and corporate tax theft and plunder. Could the Liberty Amendment be the bait for the calling of a constitutional convention? Another little noticed effect from the passage of Proposition 13 is that the politicians in California haven't taken it lying down. The people of California have unknowingly implemented regional government by relinquishing control over their locally-elected tax assessors and other local officials. Their wrath should have been righteously turned against the local assessors and tax collectors. Now this power is gone. It has been x moved up to the state which is busily adjusting its budget to allocate the dole of public money to local governments so that they can continue their profligate spending programs. This will effectively control spending and shut out local communities from any say in the matter. Also, it is part and parcel of the Federal program of regionalism which will put the states more readily under the thumb of big brother in Washington. The way to attack high taxes, whether on individual incomes, corporations, estates or property, is not through any means provided for by the tricksters who have fooled us far too many times. There is only one sensible way to relieve the American people of the outrageous taxes under which this nation is suffering. AND THAT IS REFORM OF THE MONEY SYSTEM. In the pages ahead, the reader will be given insights into the true nature of the Liberty Amendment and its real purposes. During the next few financially chaotic years, no doubt a few "money reform bills" will be trotted out. These are discussed in the text of the book. A sample of a true money reform bill is also given. LET THE VOTER BEWARE. The Insiders are too close to victory to stop now. Since they have achieved everthing so far by lies, trickery and fraud, why expect anything different from them now? Do not support the Center's non-constitution or any Constitutional Convention. Make it plain to your senators and representatives that you KNOW what it is all about and if they are "in the bankers' pocket" and go along with the non-constitution, throw them out of office. But we must have facts. Since truth and facts are the last thing we can expect from the media we must turn to other sources. Those who have supported the Liberty Amendment for years should not be angry at this author. I, too, at one time, supported it until I began to study the meaning behind its seemingly innocuous phrases and the inconsistencies of some of the statements made by its proponents. We all want to get rid of the income tax, and stridently limit all others. But, let's do it the right way. Let's do it by establishing a truly honest money system in which all the people will benefit. It can be done or we will be thrown into the chaos and slavery of a world government in which a plastic credit card will be your money. xi All of your property will be confiscated (stolen) by the money trust to pay off their fraudulent debt. WAKE UP AMERICA. It's time to stop believing lies and being taken in by propaganda. Study the money issue. Be aware of what an honest money system is and what it could do for you and your country. THEN WORK FOR THE TRUE REFORM OF OUR MONEY SYSTEM. When we have a Constitutional and honest money system, the income tax will wither away and be uncollectible. We must not be diverted by diversionary tactics. THE PRIMARY ISSUE IS MONEY ISSUANCE BY PRIVATE BANKS, AND THE FEDERAL RESERVE SYSTEM. The fight should be in this area. If we understand the money issue and begin our fight now, WE CAN WIN! June Grem xii Chapter I THE LIBERTY AMENDMENT "Words are the most powerful drug used by mankind" Rudyard Kipling Twentieth century America has been besieged by an almost continuous flow of crippling and disastrous legislation. Although the death of our nation has been well planned, the executioners were not organized enough until 1913 to get their Marxist central bank and graduated income tax enacted into law. For decades thereafter, the Federal Reserve Bank was ignored and the income tax was accepted by a docile and law-abiding people. It was only when the gradualism began to escalate to the point of confiscation that ominous rumblings against the income tax began to develop. . Because of mounting dissatisfaction with this burdensome legislation, it was natural for people to turn to any organization or plan which promised to reduce or eliminate the merciless plunder of America's most productive citizens, the working and middle classes. The Liberty Amendment seemed tailor made to do the job. Not only would the income tax be abolished by Constitutional Amendment, but, as an added bonanza, it promised to get government out of any business not specifically mentioned in the Constitution. Everyone who abhors the chaos, confusion and regulatory horrors wrought by government meddling would most certainly welcome its exodus from our lives, both personal and corporate. The Liberty Amendment Committee was founded in Los Angeles in 1944 by Mr Willis Stone and several other men who met to discuss the Sewell Avery Case. 1 These men were concerned with the continual invasion by government into the 1 Sewell Avery was the Board Chairman of Montgomery Ward & Co. who had been physically removed from his office by United States soldiers. 1 [...]... submitted to the States The amendment will become law if three quarters of the states so approve Or, two thirds of the states may call a convention for the purpose of proposing amendments, which would then become law if three quarters of the states ratified the amendment, after having been submitted to them by Congress The second type of amendment is initiated by the states, the 2 first by Congress The Liberty. .. this amendment Sec.III: The activities of the United States Government which violate the intent and purpose of this amendment shall, within a period of three years from the date of the ratification of this amendment, be liquidated and the properties and facilities affected shall be sold Sec.IV: Three years after the ratification of the amendment the sixteenth article of amendments to the Constitution of. .. House of Representatives of the United States of America in Congress assembled, That (a) the Secretary of the Treasury of the United States is hereby authorized and directed forthwith to purchase the capital stock of the twelve Federal Reserve Banks and branches, and agencies thereof, and to pay to the owners thereof the par value of such stock at the date of purchase (b) All member banks of the Federal... forthwith to the Treasurer of the United States, by the execution and delivery of such documents as may be prescribed by the Secretary of the Treasury, all the stock of said Federal Reserve Banks owned or controlled by them, together with all claims of any kind or nature in and to the capital assets of the said Federal Reserve Banks, it being the intention of this Act to vest in the Government of the United... granted the privilege of creating the nation's money and credit, they "couldn't get government out of the banking business." AND THIS IS THE CRUX OF THE ENTIRE MATTER It is the real, but never mentioned, reason for the existence of the entire movement To "remove government" from the banking business would involve the payment of billions of dollars in illegal gains to these banking shylocks They would... "in the banking business" in any sense of the word in its relationship to these financial institutions Many supporters of the Liberty Amendment may not be aware of the historic nature of the controversy regarding the government's alleged involvement or non-involvement in the banking business Opponents of honest, Constitutional money have always taken the position that the Constitution never gave the. .. unnecessary as the new powers given to the Monetary Authorities under its terms would incorporate all of these features, plus the added benefits of international gold and other lending and trading practices A great deal of attention has been given to Section I of the Liberty Amendment because the core of the proposed legislation rests upon the money question The following chapters will briefly review the remaining... REVIEW OF SECTION III OF THE LIBER TY AMENDMENT The primary purpose of the Liberty Amendment has always been the repeal of the Income Tax Amendment If this is so, why wasn't it simply confined to the repeal of the 16th Amendment? Also, the fact that it would not take effect until three years after passage indicates that some very important interim activity can be expected in connection with our money. .. dollars worth of bonds (or goods and services) for just the cost of printing? OPERATIONS OF THE FEDERAL RESERVE SYSTEM The operations of the Federal Reserve System may be divided as follows: a) The Federal Reserve System: includes the 12 Federal Reserve banks and their branches scattered throughout the country.1 b) The Board of Governors c) The Open Market Committee In 1972 the amount returned to the Treasury... and the defects remedied soon."1 THE BOARD OF GOVERNORS In 1921 the General Accounting Office (GAO) was created with audit authority over the receipt, disbursement and application of public funds From 1921 to 1933 the Board of Governors, but not the Federal Reserve Banks, came under the GAO's scrutiny In 1933 Congress voted to remove the Board of Governors from the jurisdiction of the GAO This left the . Division of the Federal Reserve Bank of New York 17 The Open Market Committee 19 III. A REVIEW OF SECTION II OF THE LIBERTY AMENDMENT 22 IV. A REVIEW OF SECTION III OF THE LIBERTY AMENDMENT. quarters of the states ratified the amendment, after having been submitted to them by Congress. The second type of amendment is initiated by the states, the 2 first by Congress. The Liberty Amendment. AND THAT IS REFORM OF THE MONEY SYSTEM. In the pages ahead, the reader will be given insights into the true nature of the Liberty Amendment and its real purposes. During the next few financially