From oil dependence to local resilience
The Case Of Jerome Daly v. First National Bank Of Montgomery, MN. a/k/a "The Credit River Decision."
Happy New Year all
You will find below an item that I sent to our American cousins to start a discussion there on Transition USA. I feel that this case may have some ramifications here, depending of course, what is in the New Zealand Reserve Bank Act.
Wo knows, maybe because of how the banks here also create money out of thin air, the "consoderation aspect" that defeated the First Bank of Montgomery could do the same here.
Comments and crticisms invited
Kind regards
Geoff. Waterhouse
Greetings from New Zealand to all our "TT American Cousins."
My name is Geoff. Waterhouse and i am a member the Steering Committee of TT Bay of Islands in New Zealand's Winterless North. I will get to the point.
I recently watched "Zeitgeist Addendum" (highly recommended for those who haven't seen it) on Google. It did a great job of exposing the Federal Reserve Banking scam, as also did Money As Debt which i also highly recommend and which can also be watched on Google. There is also, in my personal opinion, some rubbish on Zeitgeist Addendum, but the part about the money system is great.
OK. There are 2 really amazing items in the Zeitgeist movie.
The first is the reference to a publication called "Modern Money Mechanics," which, incredibly, was originally produced by Public Information Center, Federal Reserve Bank of Chicago. It was available free of charge!!!!!!! It is now out of print, supposedly, but in view of its content, I am surprised it even saw the light of day. I did a Google search "Modern Money Mechanics" found a site and was able to print out a copy. It really is incredible and i suggest that anyone wanting documentary evidence straight from the horse's mouth about how the Fed creates money out of thin air, get hold of it.
The second item is the most amazing and is The Jerome Daly Case which took place in 1969. A simple Google search will provide a whole load of information.
I will just give a brief summary here so that you have an idea of the magnitude of the implications for the Federal Reserve as a result of the decision, which has never been appealed or overturned and is, therefore, apparently still law in the USA.
Jerome Daly had a mortgage with the First National Bank of Montgomery, Minnesota. In Spring 1967, he was $476.00 in arrears, the bank foreclosed and bought the property at a Sheriff's sale on June 26, 1967.
The bank sued for possession and a jury trial , presided over by Martin V. Mahoney, Justice of the Peace, Credit River Township, Scott County, Minnesota, was held on December 7, 1968. The record of the trial is a source of wonderment to me. The record state, and i quote, "A Jury of Talesmen were called. I had never even heard of "Talesmen" so I looked it up and here is what I found on Wiktionary:-
NounSingular
tales
Plural
tales
tales (plural tales)
(law) A person available to fill vacancies in a jury.
(law) A book or register of people available to fill jury vacancies.
(law) A writ to summon people to court to fill vacancies in a jury.
Interesting eh?
The bank's president, one Lawrence V. Morgan (interesting name) appeared along with lawyer R. Melby for the plaintiff and Jerome Daly, who was a lawyer apparently, appeared on his own behalf.
You will find below an item from just one of the sites that refer to Jerome Daly's case and "The Credit River Decision"
You may also be interested to know that Martin V.Mahoney died in " a boating accident" some 6 months later but, according to reports, his body was full of poison when found.
Anyway, in summary, "The Credit River Decision," which is, apparently, still "The Law OF The Land" declared the following
# the Federal Reserve Act unconstitutional and VOID
# holding the National Banking Act unconstitutional and VOID
# declaring a mortgage acquired by the First National Bank of Montgomery, Minnesota in the regular course of its business, along with the foreclosure and
# the sheriff's sale, to be VOID
A WORD FROM AN ASSOCIATE JUSTICE
WHO KNEW AND WORKED WITH
JUSTICE MARTIN V. MAHONEY
STATE OF MINNESOTA
ABOUT THE CASE.
The "Credit River Decision" handed down by a jury of 12 on a cold day in December, in the Credit River Township Hall, was an experience that I'll never forget.
The Chief Justice of the Minnesota Supreme Court had phoned me a week before the trial and asked me if I would be an associate justice in assisting Justice Martin V. Mahoney since he had never handled a jury trial before. I accepted, and it took me two hours to get my car running in the 22 below zero weather.
I got to the courtroom about 30 minutes before trial, and helped get the wood stove going, since the trial was being held in an unheated storeroom of a general store. This was the first time I met Justice Mahoney, and I was impressed with his no nonsense manner of handling matters before him. My object was to help pick the jury, and to keep Jerome Daly and the attorney representing the Bank of Montgomery from engaging in a fist fight. The courtroom was highly charged, and the Jury was all business.
The banker testified about the mortgage loan given to Jerome Daly, but then Daly cross examined the banker about the creating of money "out of thin air," and the banker admitted that this was standard banking practice. When Justice Mahoney heard the banker testify that he could "create money out of thin air," Mahoney said, "It sounds like fraud to me." I looked at the faces of the jurors, and they were all agreeing with Mahoney by shaking their heads and by the looks on their faces.
I must admit that up until that point, I really didn't believe Jerome's theory, and thought he was making this up. After I heard the testimony of the banker, my mouth had dropped open in shock, and I was in complete disbelief. There was no doubt in my mind that the Jury would find for Daly.
Jerome Daly had taken on the banks, the Federal Reserve Banking System, and the money lenders, and had won.
It is now twenty eight years since this "Landmark Decision," and Justice Mahoney is quoted more often than any Supreme Court justice ever was. The money boys that run the "private Federal Reserve Bank" soon got back at Mahoney by poisoning him in what appeared to have been a fishing boat accident (but with his body pumped full of poison) in June of 1969, less than 6 months later.
Both Jerome Daly and Justice Martin V. Mahoney are truly the greatest men that I have ever had the pleasure to meet. The Credit River Decision was and still is the most important legal decision ever decided by a Jury. - Bill Drexler
I sincerely believe that if information about this case can be dissemineted nationwide, it could help the many Americans currently in foreclosure and living in tents as a result of losing their homes, to take on and beat "the Bankigarchy" just as Jerome Daly did. Maybe there is, somewhere in the USA,
a "caring lawyer," which is the same type of oxymoron as "honest politician," but you never know, there may be just one who would consider, maybe, a class action lawsuit against 1 Shylock outfit. The Daly case would, on the face of it, seem to provide a suitable precedent.
I don't know, as yet, what the situation is here in New Zealand. The Reserve Bank of New Zealand is owned by the government who, supposedly, are "public servants" elected to work for the good of the people. Yea Right.
I wish a Happy New Year to all our American cousins and a successful banker hunting season
Kind regards
Geoff. Waterhouse,
Opua,
Northland,
new Zealand
You will find below an item that I sent to our American cousins to start a discussion there on Transition USA. I feel that this case may have some ramifications here, depending of course, what is in the New Zealand Reserve Bank Act.
Wo knows, maybe because of how the banks here also create money out of thin air, the "consoderation aspect" that defeated the First Bank of Montgomery could do the same here.
Comments and crticisms invited
Kind regards
Geoff. Waterhouse
Greetings from New Zealand to all our "TT American Cousins."
My name is Geoff. Waterhouse and i am a member the Steering Committee of TT Bay of Islands in New Zealand's Winterless North. I will get to the point.
I recently watched "Zeitgeist Addendum" (highly recommended for those who haven't seen it) on Google. It did a great job of exposing the Federal Reserve Banking scam, as also did Money As Debt which i also highly recommend and which can also be watched on Google. There is also, in my personal opinion, some rubbish on Zeitgeist Addendum, but the part about the money system is great.
OK. There are 2 really amazing items in the Zeitgeist movie.
The first is the reference to a publication called "Modern Money Mechanics," which, incredibly, was originally produced by Public Information Center, Federal Reserve Bank of Chicago. It was available free of charge!!!!!!! It is now out of print, supposedly, but in view of its content, I am surprised it even saw the light of day. I did a Google search "Modern Money Mechanics" found a site and was able to print out a copy. It really is incredible and i suggest that anyone wanting documentary evidence straight from the horse's mouth about how the Fed creates money out of thin air, get hold of it.
The second item is the most amazing and is The Jerome Daly Case which took place in 1969. A simple Google search will provide a whole load of information.
I will just give a brief summary here so that you have an idea of the magnitude of the implications for the Federal Reserve as a result of the decision, which has never been appealed or overturned and is, therefore, apparently still law in the USA.
Jerome Daly had a mortgage with the First National Bank of Montgomery, Minnesota. In Spring 1967, he was $476.00 in arrears, the bank foreclosed and bought the property at a Sheriff's sale on June 26, 1967.
The bank sued for possession and a jury trial , presided over by Martin V. Mahoney, Justice of the Peace, Credit River Township, Scott County, Minnesota, was held on December 7, 1968. The record of the trial is a source of wonderment to me. The record state, and i quote, "A Jury of Talesmen were called. I had never even heard of "Talesmen" so I looked it up and here is what I found on Wiktionary:-
NounSingular
tales
Plural
tales
tales (plural tales)
(law) A person available to fill vacancies in a jury.
(law) A book or register of people available to fill jury vacancies.
(law) A writ to summon people to court to fill vacancies in a jury.
Interesting eh?
The bank's president, one Lawrence V. Morgan (interesting name) appeared along with lawyer R. Melby for the plaintiff and Jerome Daly, who was a lawyer apparently, appeared on his own behalf.
You will find below an item from just one of the sites that refer to Jerome Daly's case and "The Credit River Decision"
You may also be interested to know that Martin V.Mahoney died in " a boating accident" some 6 months later but, according to reports, his body was full of poison when found.
Anyway, in summary, "The Credit River Decision," which is, apparently, still "The Law OF The Land" declared the following
# the Federal Reserve Act unconstitutional and VOID
# holding the National Banking Act unconstitutional and VOID
# declaring a mortgage acquired by the First National Bank of Montgomery, Minnesota in the regular course of its business, along with the foreclosure and
# the sheriff's sale, to be VOID
A WORD FROM AN ASSOCIATE JUSTICE
WHO KNEW AND WORKED WITH
JUSTICE MARTIN V. MAHONEY
STATE OF MINNESOTA
ABOUT THE CASE.
The "Credit River Decision" handed down by a jury of 12 on a cold day in December, in the Credit River Township Hall, was an experience that I'll never forget.
The Chief Justice of the Minnesota Supreme Court had phoned me a week before the trial and asked me if I would be an associate justice in assisting Justice Martin V. Mahoney since he had never handled a jury trial before. I accepted, and it took me two hours to get my car running in the 22 below zero weather.
I got to the courtroom about 30 minutes before trial, and helped get the wood stove going, since the trial was being held in an unheated storeroom of a general store. This was the first time I met Justice Mahoney, and I was impressed with his no nonsense manner of handling matters before him. My object was to help pick the jury, and to keep Jerome Daly and the attorney representing the Bank of Montgomery from engaging in a fist fight. The courtroom was highly charged, and the Jury was all business.
The banker testified about the mortgage loan given to Jerome Daly, but then Daly cross examined the banker about the creating of money "out of thin air," and the banker admitted that this was standard banking practice. When Justice Mahoney heard the banker testify that he could "create money out of thin air," Mahoney said, "It sounds like fraud to me." I looked at the faces of the jurors, and they were all agreeing with Mahoney by shaking their heads and by the looks on their faces.
I must admit that up until that point, I really didn't believe Jerome's theory, and thought he was making this up. After I heard the testimony of the banker, my mouth had dropped open in shock, and I was in complete disbelief. There was no doubt in my mind that the Jury would find for Daly.
Jerome Daly had taken on the banks, the Federal Reserve Banking System, and the money lenders, and had won.
It is now twenty eight years since this "Landmark Decision," and Justice Mahoney is quoted more often than any Supreme Court justice ever was. The money boys that run the "private Federal Reserve Bank" soon got back at Mahoney by poisoning him in what appeared to have been a fishing boat accident (but with his body pumped full of poison) in June of 1969, less than 6 months later.
Both Jerome Daly and Justice Martin V. Mahoney are truly the greatest men that I have ever had the pleasure to meet. The Credit River Decision was and still is the most important legal decision ever decided by a Jury. - Bill Drexler
I sincerely believe that if information about this case can be dissemineted nationwide, it could help the many Americans currently in foreclosure and living in tents as a result of losing their homes, to take on and beat "the Bankigarchy" just as Jerome Daly did. Maybe there is, somewhere in the USA,
a "caring lawyer," which is the same type of oxymoron as "honest politician," but you never know, there may be just one who would consider, maybe, a class action lawsuit against 1 Shylock outfit. The Daly case would, on the face of it, seem to provide a suitable precedent.
I don't know, as yet, what the situation is here in New Zealand. The Reserve Bank of New Zealand is owned by the government who, supposedly, are "public servants" elected to work for the good of the people. Yea Right.
I wish a Happy New Year to all our American cousins and a successful banker hunting season
Kind regards
Geoff. Waterhouse,
Opua,
Northland,
new Zealand
Views: 201
Replies to This Discussion
-
Permalink Reply by Naresh Navaratnarajah on -
Hi Everyone! Greetings from Singapore :)
I recently came across this website and i hope to engage the community here so that i can better understand some of the issues brought up in the Zeitgeist Addendum documentary.
The Case about Jerome Daly vs First National Bank of Montgomery is nothing short of astounding. While i need to do more research on this topic, the crux of the issue is that the plaintiff (Jerome Daly) had put his property up for mortgage; something of tangible value. The banks as such had to provide "due consideration" by putting up something of equal value - that would be the money in its reserves. Here is where things get a little tricky - without the gold standard, the value of the money is nothing more than what the paper is worth. This is even more so when the bank apparently comes up with the money from "thin air"?
How does the bank come up with the money from thin air? - Now according to the video, it is based on the fractional reserve banking system which governs the relationship between the Federal Reserve and the commercial banks. At present the reserve amount is at 10%. I have yet to grasp the economics of the fractional reserve system and how banks are able to "create money" out of seemingly nothing and by doing so, continue to impress inflationary pressure on the economy.
I will take some time to understand the process, speak to some friends in the industry and hopefully sit a professor down to run the economics and morality of this monetary system. With not a strong background in economics, i am afraid this is going to take me some time but for now i would like to divert your attention to the following resources for further reading.
1) Fractional Reserve Banking by Murray N. Rothbard http://www.lewrockwell.com/rothbard/frb.html
2) Modern Money Mechanics, Federal Reserve Bank of Chicago http://www.truthsetsusfree.com/ModernMoneyMechanics.pdf
I look forward to hearing comments from others who may be able to aid my understanding of the issue.
Thank you and kind regards!
Naresh Navaratnarajah
Singapore
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Permalink Reply by Maeva on -
Hi all,
I also came accross this case studies in this movie and I found it very interesting.
To be honest, although I am not really interested in finance, I must say that coming accross this case and trying to understand it gave me some insight on what is going on in this financial sphere. So we are actually completly manipulated by a system that we ourselves support - by our ignorance.
I agree with Naresh that the community should be engaged to this topic as it surely requires everybody's attention.
How many of you knows about it? Does anyone have any opposing views on it? I am sure it rings a bell to you guys...
Waiting for your viewpoints and opinions dear members !
Cheers,
Maeva
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Permalink Reply by Natalie on -
Hi,
this case is indeed interesting. I would love to find out some more about this, especially have one or more of those keen legal professionals out there research the situation in New Zealand - or even the applicability of this precedent??
As far as I understand it - if the legal situation in NZ is the same it is well possible a NZ Court of law would arrive at the same decision - particularly in the face of this overseas precedent. This could well mean that all our NZ mortgage agreements would not hold up in a court of law. -- Then YAY all you mortgagees out there... no more mortgage repayments ever ;-)!
To my knowledge, the "consideration" rule is the same in NZ, and also the fractional reserve system is applied in NZ - in an even more aggressive way than in the States, as I understand it, because it appears there is no minimum fractional reserve (like 10% in the States) here, but the NZ banks are actually allowed to set their own minimum reserves. Please correct me anyone if I am wrong - this is what I found during my quick glance at things.
So, all you good legal people out there - please have a look at this -- and let all of us out here know whether we still need to make our mortgage repayments next week ;-)!!
Hopeful,
Natalie ;-)
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Permalink Reply by James Edwards on -
Hey Natalie,
There have been several tests of the legality of the monetary system, both through government ( Royal Commission on Monetary Banking and Credit Systems, 1955) and legal (Rupa vs. Bank of New Zealand) both of which found in the banks favour. The difference between the United States is that they actually have a constitution that precisely precisely lays out the limited powers of the State, whilst neither New Zealand nor the United Kingdom does. The governor is effectively acting under the authority of the Crown of England as are our politicians.
http://archway.archives.govt.nz/ViewFullSeriesHistory.do
www.buddlefindlay.com/upload/Legal_update_on_banking_law_-_April_20... -
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Permalink Reply by Ryan Simmons on
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Hi Natalie,
This is something i came across on the Reserve Bank Of New Zealand website, the creation of money by banks in New Zealand. Here it is in black and white:
If this hyperlink doesn't work here it is
http://www.rbnz.govt.nz/research/bulletin/2007_2011/2008mar71_1lawr...
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Permalink Reply by Liz Lambert on -
Hi James I had a look at the Rupa decision - thanks for the link. I am interested in challenging threatened foreclosure but not on the basis of Rupa. What I am interested in investigating is the point of securitisation. You may or may not have heard of the cases on Ohio last year where foreclosure on 14 properties was thrown out of court because the bank ( Deutsche Bank) couldn't produce the titles. I have copied some of the reasoning of behind how the finanical instument in this situation was set up- makes it a bit clearer.
"The comparison has oft been made between the traditional mortgage of days gone by and mortgages in the burgeoning securitised credit derivative market. If you have a straightforward mortgage issued by your bank - one which remains on the bank's ledger - then such a renegotiation of mortgage terms in the case of delinquency is not a difficult task. However, if you have borrowed from a non-bank mortgage lender, who has sold the mortgage to a bank, who then packages it up with several others into a collateralised debt obligation, who divides that CDO into tranches and sells those tranches off to an offshore hedge fund, having provided the hedge fund with significant leverage in order to buy the CDO in the first place, then it's quite possible the guy you need to talk to your mortgage about is not your bank, but some cowboy investor in Tokyo, or London, or Berlin."
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Permalink Reply by Liz Lambert on
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This makes me wonder about the Goldcorp case in NZ -I don't know if you are familiar but the investors couldn't get their gold - or meney to compensate them for their gold because the ingots were not indentified in their names. My question is why can not the same principle be applied to the lenders trying to make claims on their loans.
I have been looking for others to work with me on this - looks like I got quided to the right place!
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Permalink Reply by Liz Lambert on
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Hi Natalie have a look at my reply to James
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Permalink Reply by Liz Lambert on
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Hi Ryan have a look at my reply to James.
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Permalink Reply by Liz Lambert on
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Hi Naresh can you help with the issues I have noted in my posting?
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Permalink Reply by Liz Lambert on
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Hi Geoff in sunny Northland - I am on the track of people to help with this issue in NZ. please see my posting for ideas about what might be done here.
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Permalink Reply by Geoff. Waterhouse on -
Hello Liz
This has not been picked up on for a while. Are you in New Zealand? I would like to chat with you if you wish
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