L. Fletcher Prouty On
JFK & The Fed

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. has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid.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, if so, is he willing to pay the ultimate price for doing so?
(All Readers are urged to obtain a copy of Executive Order 11110 by contacting their Congressional representative, it is dated June 4, 1963.)
Reply From Col. Prouty to [witheld]
Thanks for your good question [witheld],
Your comment about "The power of the Fed" as a factor in the over-all decision to assassinate JFK is correct. Do you recall the line at the beginning of the conversation of Garrison and Man X in Washington in Stone's movie "JFK"?
Jim Garrison asks, "How do you think it all started?"
Man X (Prouty) responds, " I think it startedi n the wind. Money -- arms, big oil, Pentagon people, contractors, bankers, politicians like L.B.J. were committed to a war in Southeast Asia. As early as '61 they knew Kennedy was going to change things... He was not going to war in Southeast Asia. Who knows? Probably some boardroom or luncheon somewhere - Houston, New York -- hell, maybe Bonn, Germany... who knows, it's international now."
You're correct, and the above is what I wrote for Oliver Stone. It is what I believe from my experience. And, you are correct to go back to Exec. Order no. 11110. That money JFK putinto circulation was an enormous challenge to the business world.
I am a graduate of the American Bankers Assn "Graduate School of Banking" at the University of Wisconsin and I have heard some of the top bankers, such as Arthur Burns lecture. That was in the late Sixties; but you could still feel the stress of those JFK years in what they had to say.
JFK was serious about getting "all Americans" out of Vietnam by the end of 1965. That was NSAM 263 and my boss General Victor Krulak, with the JCS, had worked on that document. Even the Pentagon Papers made an attempt to conceal NSAM #263.
In addition to the references you have cited, may I suggest that you get the "Foreign Relations of the united States. 1961-1963, Volume IV, VIETNAM, August-December 1963" from the US Gov't Printing Office and see what it was all about in those days.
Colonel L. Fletcher Prouty [Ret. USAF]
From Diane
I am 99% sure the article you have on your website re JFK and Executive Order 11110 is bogus. It is one of those hoaxes that is all over the internet and radio shows and is so widely believed by folks that someone needs to put a stop to it asap. As long as you keep this article in your archives without the debunking info displayed alongside, it will serve to damage your credibility (which in my book is exemplary). You most likely have never seen the following research before. It is found at --
Executive Order No. 11110
There is currently floating around the Net one theory of the Kennedy assassination based upon certain legal documents. According to this idea, Kennedy was assassinated because he was about ready to start issuing silver certificates; to prevent him from doing so, the "powers that be" had him killed. Please understand that what I offer below explaining the flaw of this argument does not mean that I am an apologist for the Fed or banking industry; it should be obvious from my site that I am not. I only offer these comments because this argument demonstrates just one of the completely erroneous arguments which is allegedly based upon the "law" but are not.
When Congress enacts a law, it often delegates authority to enforce and administer the law to some executive official, typically the President. Naturally, the President does not personally attend to such duties and must himself delegate to others within the Executive branch. The Agricultural Adjustment Act of May 12, 1933, was one of these acts and it permitted the President in ¤43 to issue silver certificates.
Public Law 673 enacted by Congress in 1950 was similar to many previous ones and it allowed the President to delegate his statutory functions to others within the Executive branch. It provided:
The President of the United States is hereby authorized to designate and empower the head of any department or agency in the executive branch, or any official thereof who is required to be appointed by and with the advice and consent of the Senate, to perform, without approval, ratification, or other action by the President (1) any function which is vested in the President by law, or (2) any function which such officer is required or authorized by law to perform only with or subject to the approval ratification, or other action of the President: * * *
Pursuant to this statutory authority, on September 19, 1951, President Truman issued Executive Order No. 10289, which delegated to the Secretary of the Treasury lots of the statutory duties of the President. This executive order provided in part as follows:
By virtue of the authority vested in me by section 1 of the act of August 8, 1950, 64 Stat. 419 (Public Law 673, 81st Congress), and as President of the United States, it is ordered as follows:
1. The Secretary of the Treasury is hereby designated and empowered to perform the following described functions of the President without the approval, ratification, or other action of the President:
(a) The authority vested in the President by section 1 of the act of August 1, 1914, c. 223, 38 Stat. 609, as amended (19 U.S.C. 2), (1) to rearrange, by consolidation or otherwise, the several customs-collection districts, (2) to discontinue ports of entry by abolishing the same and establishing others in their stead, and (3) to change from time to time the location of the headquarters in any customs-collection district as the needs of the service may require.
(b) The authority vested in the President * * *
Thereafter, this executive order listed another 8 statutory powers of the President which he was delegating to the Treasury Secretary, the substance of which is not important for this discussion. Please remember that this delegation to the Treasury Secretary was to be exercised "without the approval, ratification, or other action of the President." It should also be noted that this particular executive order did not delegate to the Treasury Secretary the authority to issue silver certificates granted to the President in the 1933 law noted above.
From 1933 until 1963, the President alone possessed the statutory authority to issue silver certificates. But then on June 4, 1963, President Kennedy amended Truman's 1951 Executive Order No. 10289 by Executive Order No. 11110. This particular order read as follows:
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 -
(a) By adding at the end of paragraph 1 thereof the following subparagraph (j):
(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 denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption," and
(b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof.
SECTION 2. The amendment 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.
June 4, 1963
By this executive order, the statutory authority of the President to issue silver certificates was delegated to the Treasury Secretary. In Kennedy's administration, the Treasury Secretary was Douglas Dillon, a man from a banking family and a known established "power" in the banking community. Kennedy delegated the authority to issue silver certificates to Dillon and his successors, and this power could be exercised "without the approval, ratification, or other action of the President."
The only reasonable conclusion which may be reached based upon the facts are the exact opposite of the argument made on the Net. For some 30 years, the President himself held the power to issue silver certificates. But some 5 months before his assassination, Kennedy delegated this power to Dillon, and via this order, Dillon could do as he pleased with this power. To assert that Kennedy was by Executive Order No. 11110 getting ready to issue silver certificates is contrary to the plain facts. Instead, Kennedy was surrendering this power and delegating it to the Treasury Secretary, who was someone from the banking industry. Clearly, it appears that this EO was issued to put the power to issue silver certificates into safe hands, that of a banker. There is no substance to this theory on the Net. I cannot understand how this particular order proves that Kennedy was about to issue silver certificates. Where is the proof that Kennedy was anything other than a pawn of the banking community?
Additional Note re EO 11110:
From Jim Ewart at
Hi Larry:
Thanks for the input re the John F. Kennedy "silver-certificate" item. As chance would have it, about two months ago I helped Ed Griffin ("Creature From Jekyll Island") write a letter to a guy who raised this issue with Ed. Ed and I came to the same conclusion as you did, that the story being circulated by some "patriots" was seriously flawed.
As you may recall, some 20 years ago a different story was making the rounds of the "patriot" community. This story said that JFK made a speech at Columbia University a couple of weeks before his death. In that speech JFK supposedly said, "I have discovered that the high office of the presidency has been used to foment a plot against the American people," and allegedly, this presentation continued with him saying that he was going to take decisive steps to stop that plot in its tracks.
JFK supposedly then ordered the US Treasury to immediately print zillions of US Notes (_not_ silver certificates) to replace all the Federal Reserve Notes then in circulation. The implication was that by replacing the Federal Reserve Notes with US Notes, the federal government would no long have to pay interest to the Fed on the face value of all the paper currency -- precisely because US Notes are "spent into circulation interest free" (echoing the late Pastor Sheldon Emery and others of his persuasion, that is, the advocates of "populism" and/or "social credit.")
A few days before JFK's death, supposedly about $300 million of these US Notes were placed in circulation, and it was exactly this action by JFK that caused the bad guys, the "banksters," to arrange for JFK to be killed. However, while this story is interesting, it apparently has almost no factual basis.
One of Congressman Ron Paul's researchers was a libertarian gal with heavy economic and finance credentials, a Masters Degree in finance if I recall correctly, and many years of investment analysis for a major brokerage firm. This gal, Rita something or another, spent several months early in 1983 investigating the story for Ron Paul. She called me later that year to see if I could supply her with any supporting information.
I told her I had heard the rumor but did not have any facts to support it. She said she'd been in close touch with top-level people in the Kennedy family, and in contact with several of JFK's closest political cronies, and also in contact with top people at Columbia University. The University had no memory or other record of JFK being on that campus or in the area for any meeting of any kind within several years of the alleged appearance, and none of JFK's associates, political or personal, offered anything but negative comment on the whole tale.
This researcher (Rita D. Simone, from Arlington, Virginia, whose name, address, and phone number is still in the ZNS database) concluded that the alleged event simply did not happen.
However, some US Notes were issued in 1962 but solely to replace worn-out Federal Reserve Notes from the series of 1950 and earlier. The US Notes were used because the Treasury had already issued all of its authorized inventory of uncirculated Federal Reserve Notes, and because the Treasury could print US Notes without special prior approval from the Federal Reserve banking system.
But the US Notes were strictly an interim solution to the problem of replacing worn Federal Reserve Notes. Please recall that the next year, in 1963, the Treasury printed and began issuing Federal Reserve tokens, FRTs, the "new Federal Reserve Note" bills, the ones missing the phrases "will pay to the bearer on demand" and "and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank."
FRTs would eventually replace _all_ then-circulating paper currency: US Notes, Federal Reserve Notes from the series of 1950 and earlier, and silver certificates. Within 10 years or so, the only paper currency circulating in the U.S. was the FRT.
The man who contacted Ed Griffin, questioning something Ed had said in "Creature from Jekyll Island," said he had heard the US Note story from an organization called "Christian" something or another. I had not heard of that entity, I had no record of it in my big database of patriotic groups, publications, and broadcasts, etc., and I had no record of any similar-sounding entity in the general area of the writer's home address.
I concluded that the "Christian" something or another "group" was really
just a dba of a lone individual patriot, someone who simply and innocently echoed a highly inaccurate version of the largely fictional JFK-Columbia University tale.
[snip re personal matters]
Also, thanks again for the analysis of the JFK "silver certificate" story.
Best wishes,
Jim Ewart


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