- Executive Order 1110 gave the US the ability to create
its own money backed by silver. ...
- On June 4, 1963, a little known attempt was made to strip
the Federal Reserve Bank of its power to loan money to the government at
interest. On that day President John F. Kennedy signed Executive Order
No. 11110 that returned to the U.S. government the power to issue currency,
without going through the Federal Reserve. Mr. Kennedy's order gave the
Treasury the power "to issue silver certificates against any silver
bullion, silver, or standard silver dollars in the Treasury." This
meant that for every ounce of silver in the U.S. Treasury's vault, the
government could introduce new money into circulation. In all, Kennedy
brought nearly $4.3 billion in U.S. notes into circulation. The ramifications
of this bill are enormous.
- With the stroke of a pen, Mr. Kennedy was on his way
to putting the Federal Reserve Bank of New York out of business. If enough
of these silver certificats were to come into circulation they would have
eliminated the demand for Federal Reserve notes. This is because the silver
certificates are backed by silver and the Federal Reserve notes are not
backed by anything. Executive Order 11110 could have prevented the national
debt from reaching its current level, because it would have given the gevernment
the ability to repay its debt without going to the Federal Reserve and
being charged interest in order to create the new money. Executive Order
11110 gave the U.S. the ability to create its own money backed by silver.
- After Mr. Kennedy was assassinated just five months later,
no more silver certificates were issued. The Final Call has learned that
the Executive Order was never repealed by any U.S. President through an
Executive Order and is still valid. Why then has no president utilized
it? Virtually all of the nearly $6 trillion in debt has been created since
1963, and if a U.S. president had utilized Executive Order 11110 the debt
would be nowhere near the current level. Perhaps the assassination of JFK
was a warning to future presidents who would think to eliminate the U.S.
debt by eliminating the Federal Reserve's control over the creation of
money. Mr. Kennedy challenged the government of money by challenging the
two most successful vehicles that have ever been used to drive up debt
- war and the creation of money by a privately-owned central bank. His
efforts to have all troops out of Vietnam by 1965 and Executive Order 11110
would have severely cut into the profits and control of the New York banking
establishment. As America's debt reaches unbearable levels and a conflict
emerges in Bosnia that will further increase America's debt, one is force
to ask, will President Clinton have the courage to consider utilizing Executive
Order 11110 and, ifso, is he willing to pay the ultimate price for doing
- Executive Order 11110 AMENDMENT OF EXECUTIVE ORDER NO.
- AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS
AFFECTING THE DEPARTMENT OF THE TREASURY
- By virtue of the authority vested in me by section 301
of title 3 of the United States Code, it is ordered as follows:
- Section 1. Executive Order No. 10289 of September 19,
1951, as amended, is hereby further amended-
- By adding at the end of paragraph 1 thereof the following
- (j) The authority vested in the President by paragraph
(b) of section 43 of the Act of May 12,1933, as amended (31 U.S.C.821(b)),
to issue silver certificates against any silver bullion, silver, or standard
silver dollars in the Treasury not then held for redemption of any outstanding
silver certificates, to prescribe the denomination of such silver certificates,
and to coin standard silver dollars and subsidiary silver currency for
- and --
- Byrevoking subparagraphs (b) and (c) of paragraph 2 thereof.
- Sec. 2. The amendments made by this Order shall not affect
any act done, or any right accruing or accrued or any suit or proceeding
had or commenced in any civil or criminal cause prior to the date of this
Order but all such liabilities shall continue and may be enforced as if
said amendments had not been made.
- John F. Kennedy The White House, June 4, 1963.
- Of course, the fact that both JFK and Lincoln met the
the same end is a mere coincidence.
- Abraham Lincoln's Monetary Policy, 1865 (Page 91 of Senate
- Money is the creature of law and the creation of the
original issue of money should be maintained as the exclusive monopoly
of national Government.
- Money possesses no value to the State other than that
given to it by circulation.
- Capital has its proper place and is entitled to every
protection. The wages of men should be recognised in the structure of and
in the social order as more important than the wages of money.
- No duty is more imperative for the Government than the
duty it owes the People to furnish them with a sound and uniform currency,
and of regulating the circulation of the medium of exchange so that labour
will be protected from a vicious currency, and commerce will be facilitated
by cheap and safe exchanges.
- The available supply of Gold and Silver being wholly
inadequate to permit the issuance of coins of intrinsic value or paper
currency convertible into coin in the volume required to serve the needs
of the People, some other basis for the issue of currency must be developed,
and some means other than that of convertibility into coin must be developed
to prevent undue fluctuation in the value of paper currency or any other
substitute for money of intrinsic value that may come into use.
- The monetary needs of increasing numbers of People advancing
towards higher standards of living can and should be met by the Government.
Such needs can be served by the issue of National Currency and Credit through
the operation of a National Banking system .The circulation of a medium
of exchange issued and backed by the Government can be properly regulated
and redundancy of issue avoided by withdrawing from circulation such amounts
as may be necessary by Taxation, Redeposit, and otherwise. Government has
the power to regulate the currency and creditof the Nation.
- Government should stand behind its currency and credit
and the Bank deposits of the Nation. No individual should suffer a loss
of money through depreciation or inflated currency or Bank bankruptcy.
- Government possessing the power to create and issue currency
and creditas money and enjoying the right to withdraw both currency and
credit from circulation by Taxation and otherwise need not and should not
borrow capital at interest as a means of financing Governmental work and
public enterprise. The Government should create, issue, and circulate all
the currency and credit needed to satisfy the spending power of the Government
and the buying power of the consumers. The privilege of creating and issueing
money is not only the supreme prerogative of Government, but it is the
Governments greatest creative opportunity.
- By the adoption of these principles the long felt want
for a uniform medium will be satisfied. The taxpayers will be saved immense
sums of interest, discounts, and exchanges. The financing of all public
enterprise, the maintenance of stable Government and ordered progress,
and the conduct of the Treasury will become matters of practical administration.
The people can and will be furnished with a currency as safe as their own
Government. Money will cease to be master and become the servant of humanity.
Democracy will rise superior to the money power.
- Some information on the Federal Reserve The Federal Reserve,
a Private Corporation One of the most common concerns among people who
engage in any effort to reduce their taxes is, "Will keeping my money
hurt the government's ability to pay it's bills?" As explained in
the first article in this series, the modern withholding tax does not,
and wasn't designed to, pay for government services. What it does do, is
pay for the privately-owned Federal Reserve System.
- Black's Law Dictionary defines the "Federal Reserve
System" as, "Network of twelve central banks to which most national
banks belong and to which state chartered banks may belong. Membership
rules require investment of stock and minimum reserves."
- Privately-owned banks own the stock of the Fed. This
was explained in more detail in the case of Lewis v. United States, Federal
Reporter, 2nd Series, Vol. 680, Pages 1239, 1241 (1982), where the court
- Each Federal Reserve Bank is a separate corporation owned
by commercial banks in its region. The stock-holding commercial banks elect
two thirds of each Bank's nine member board of directors.
- Similarly, the Federal Reserve Banks, though heavily
regulated, are locally controlled by their member banks. Taking another
look at Black's Law Dictionary, we find that these privately owned banks
actually issue money:
- Federal Reserve Act. Law which created Federal Reserve
banks which act as agents in maintaining money reserves, issuing money
in the form of bank notes, lending money to banks, and supervising banks.
Administered by Federal Reserve Board (q.v.).
- The FED banks, which are privately owned, actually issue,
that is, create, the money we use. In 1964 the House Committee on Banking
and Currency, Subcommittee on Domestic Finance, at the second session of
the 88th Congress, put out a study entitled Money Facts which contains
a good description of what the FED is:
- The Federal Reserve is a total money-making machine.It
can issue money or checks. And it never has a problem of making its checks
good because it can obtain the $5 and $10 bills necessary to cover its
check simply by asking the Treasury Department's Bureau of Engraving to
- As we all know, anyone who has a lot of money has a lot
of power. Now imagine a group of people who have the power to create money.
Imagine the power these people would have. This is what the Fed is.
- No man did more to expose the power of the Fed than Louis
T. McFadden, who was the Chairman of the House Banking Committee back in
the 1930s. Constantly pointing out that monetary issues shouldn't be partisan,
he criticized both the Herbert Hoover and Franklin Roosevelt administrations.
In describing the Fed, he remarked in the Congressional Record, House pages
1295 and 1296 on June 10, 1932, that:
- Mr. Chairman,we have in this country one of the most
corrupt institutions the world has ever known. I refer to the Federal Reserve
Board and the Federal reserve banks. The Federal Reserve Board, a Government
Board, has cheated the Government of the United States and he people of
the United States out of enoughmoney to pay the national debt. The depredations
and the iniquities of the Federal Reserve Board and the Federal reserve
banks acting together have cost this country enough money to pay the national
debt several times over. This evil institution has impoverished and ruined
the people of the UnitedStates; has bankrupted itself, and has practically
bankrupted our Government. It has done this through the maladministration
of that law by which the Federal Reserve Board, and through the corrupt
practices of the moneyed vultures who control it.
- Some people think the Federal reserve banks are United
States Government institutions. They are not Government institutions. They
are private credit monopolies which prey upon the people of the United
States for the benefit of themselves and their foreign customers; foreign
and domestic speculators and swindlers; and rich and predatory money lenders.
In that dark crew of financial pirates there are those who would cut a
man's throat to get a dollar out of his pocket; there are those who send
money into States to buy votes to control our legislation; and there are
those who maintain an international propaganda for the purpose of deceiving
us and of wheedling us into the granting of new concessions which will
permit them to cover up their past misdeeds and set again in motion their
gigantic train of crime. Those 12 private credit monopolies were deceitfully
and disloyally foisted upon this country by bankers who camehere from Europe
and who repaid us for our hospitality by undermining our American institutions.
- The Fed basically works like this: The government granted
its power to create money to the Fed banks. They create money, then loan
it back to the government charging interest. The government levies income
taxes to pay the interest on the debt. On this point, it's interesting
to note that the Federal Reserve act and the sixteenth amendment, which
gave congress the power to collect income taxes, were both passed in 1913.
The incredible power of the Fed over the economy is universally admitted.
Some people, especially in the banking and academic communities, even support
it. On the other hand, there are those, both in the past and in the present,
that speak out against it. One of these men was President John F. Kennedy.
His efforts were detailed in Jim Marrs' 1990 book, Crossfire:
- Another overlooked aspect of Kennedy's attempt to reform
American society involves money. Kennedy apparently reasoned that by returning
to the constitution, which states that only Congress shall coin and regulate
money, the soaring national debt could be reduced by not paying interest
to the bankers of the Federal Reserve System, who print paper money then
loan it to the government at interest. He moved in this area on June 4,
1963, by signing Executive Order 11,110 which called for the issuance of
$4,292,893,815 in United States Notes through the U.S. Treasury rather
than the traditional Federal Reserve System. That same day, Kennedy signed
a bill changing the backing of one and two dollar bills from silver to
gold, adding strength to the weakened U.S. currency.
- Kennedy's comptroller of the currency, James J. Saxon,
had been at odds with the powerful Federal Reserve Board for some time,
encouraging broader investment and lending powers for banks that were not
part of the Federal Reserve system. Saxon also had decided that non-Reserve
banks could underwrite state and local general obligation bonds, again
weakening the dominant Federal Reserve banks.
- A number of "Kennedy bills" were indeed issued
- the author has a five dollar bill in his possession with the heading
"United States Note" - but were quickly withdrawn after Kennedy's
death. According to information from the Library of the Comptroller of
the Currency, Executive Order 11,110 remains in effect today, although
successive administrations beginning with that of President Lyndon Johnson
apparently have simply ignored it and instead returned to the practice
of paying interest on Federal Reserve notes. Today we continue to use Federal
Reserve Notes, and the deficit is at an all-time high.
- The point being made is that the IRS taxes you pay aren't
used for government services. It won't hurt you, or the nation, to legally
reduce or eliminate your tax liability.
- From The Final Call, Vol15, No.6, on January 17, 1996