From: Doug Renner <dougr@skypoint-gw.globelle.com>
Date: Mon, 11 Nov 1996 18:18:30 -0800 (PST)
To: "Michael Froomkin - U.Miami School of Law" <froomkin@law.miami.edu>
Subject: Re: Not. [Was Re: Federal Reserve Bank is ILLEGAL?]
In-Reply-To: <Pine.SUN.3.95.961111094329.3168B-100000@viper.law.miami.edu>
Message-ID: <Pine.3.89.9611112333.B16991-0100000@skypoint-gw.globelle.com>
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On Mon, 11 Nov 1996, Michael Froomkin - U.Miami School of Law wrote:

> Instead of reading the rabid nonsense referred to in the previous post in
> this thread, try
> 
> http://www.law.miami.edu/~froomkin/articles/reinvent.htm

[snip]

Michael you make some outstanding points in your article!  One that struck 
me was:

  "Today more federal corporations exist than ever before in 
peacetime, and the number keeps growing. While toiling in obscurity, they
manage communication satellites, museums, railroads, and power 
generation.  They provide specialized credit and insurance for housing and
agriculture.  They exist as accounting devices to hide the true size of 
the budget deficit, as nonprofit organizations, and as highly profitable 
and highly leveraged economic colossi. The most profitable corporations, 
which provided a total of about $5 trillion in credit and insurance in 
1995, also have approximately $1.5 trillion in securities and other debt 
outstanding.  These organizations are capable of squirreling away $2 
billion for a rainy day, while pleading poverty to Congress.{10} "

Michael, clearly your article is much more professionally written and 
well organized, and it addresses some primary issues raised in the previous 
article nearly head-on.  However is it true that what you are saying is 
that two fundamental premises in the article you refer to as "rabid" are 
incorrect?  Namely:

"ARTICLE 1, SECTION 8 OF THE CONSTITUTION STATES THAT CONGRESS SHALL HAVE
THE POWER TO COIN (CREATE) MONEY AND REGULATE THE VALUE THEREOF.

"IN 1935 THE SUPREME COURT RULED THAT CONGRESS CANNOT CONSTITUTIONALLY
DELEGATE ITS POWER TO ANOTHER GROUP. (Reference 22, P. 168)

Are these not correct?  Anyway, there were issues other than mere legality 
discussed, including history & practicality.  Specifically, the quotes from 
Benjamin Franklin, Thomas Jefferson, Rothschild, references to 
Congressional Record, etc. were what had impressed me in the link 
below.

> On Mon, 11 Nov 1996, Doug Renner wrote:

http://feustel.mixi.net/GOV/DEPTS/fedres.html

Is it an accurate statement that we are effectively paying the Fed 
interest on the currency we carry?

> 
> A. Michael Froomkin        | +1 (305) 284-4285; +1 (305) 284-6506 (fax)
> Associate Professor of Law |
> U. Miami School of Law     | froomkin@law.miami.edu
> P.O. Box 248087            | http://www.law.miami.edu/~froomkin
> Coral Gables, FL 33124 USA | It's warm here. 
> 

Or am I just making that common but incorrect assumption that 
unconstitutionality entails illegality?

Thanks for responding to this thread, Michael.  Your input is very much 
valued.

Regards,
IAJAT (just a taxpayer)
Doug