Subject: A Bill to Abolish the Federal Reserve Date: Tue, 19 Dec 1995 01:51:07 GMT
Distribution: World
For Immediate Release
[POST-IT NOTE: Due to the length of this Bill, I've posted only a
few
of the most interesting sections of it here. Our Special Report
contained the entire Bill. I'll be happy to email the entire report
to
you.
Contact:
jinks@u.washington.eduand request it.]
The Bill would appear to make the monetary system more responsive
to
the public. Although drafted in the 1930s during the Great
Depression,
The Lemke Bill's prescription for ending the national debt may
speak
to us today, as we approach the five trillion dollar mark. Reader
comment is solicited and encouraged.
Send replies to:
jinks@u.washington.eduand request it.]
HERE ARE THE BILL'S MAIN FEATURES:
* Establishes a system of banking owned, controlled, and operated
by the United States;
* Abolishes the Federal Reserve Board;
* Replaces Federal Reserve Notes with United States Money;
* Prohibits loans to foreign governments;
* Reserves gold for international settlement (governmental)
payments;
* Loans public works funds to economically distressed states;
* Maintains price stability based on monitoring commodity prices;
* Retires public indebtedness;
* Contributes its profits for governmental expenses;
Be in enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of encouraging and promoting agriculture, commerce, and industry, and for the purpose of financing the Government of the United States and the various departments thereof, and providing the people of the United States and the various States and political subdivisions thereof, with a sound and elastic national currency and medium of exchange, the Government of the United States shall coin and issue money and regulate the value thereof, and for that purpose there is hereby established a system of banking owned, controlled, and operated by the United States, in its sovereign and governmental capacity, under the name of the Bank of the United States.
Sec. 4. The Board of Control may acquire, by purchase, lease, or by the exercise of the right of eminent domain, all requisite property and property rights, including the twelve Federal Reserve bank buildings with all equipment, and may construct, remodel, and repair buildings, but it shall not invest more than is necessary and convenient to conduct its business in furniture, fixtures, lands, and buildings for office purposes.
Sec. 9. When the Bank of the United States is organized and is ready to proceed to the transaction of business the Board of Control shall so notify the Comptroller of the Currency, and thereupon it shall become his duty, under the supervision of the Secretary of the Treasury, to cause to be engraved, printed, delivered, and furnished to the manager of the bank notes for circulation in the sum of $5,000,000,000, or such additional sums as may be necessary to carry out the purposes of this Act. These notes shall have engraved and printed upon their face the words, "United States Money." Such notes shall be secured by the full faith and credit of all the resources of the United States, including all of the gold and silver now or hereafter owned by the Government of the United States. The notes so issued shall become the capital and the revolving fund of the bank.
Sec. 15. The Bank of the United States may transfer any available funds to the credit of the Treasurer of the United States for the general fund: Provided, That the return of such funds is evidenced or secured and assured by the depositing with the bank of bonds or certificates of indebtedness of the United States in an amount equal to the amount of the funds so transferred. The Bank of the United States may make loans to any State or Territory of the United States, or to any political subdivision thereof for public improvements, or to any State or National bank, savings bank, or trust company within the United States or any Territory thereof, provided such loans are amply secured by approved bonds of any State, Territory, or political subdivision thereof and other acceptable paper: Provided, That the bonded indebtedness, including outstanding certificates or warrants of indebtedness of any such State, Territory, or political subdivision thereof is not in excess of 30 per centum of the assessed valuation of the taxable property of any such State, Territory, or political subdivision. Provided further, That the Bank of the United States shall make no deposits in, or loans to, any State, National or Federal Bank, unless such bank keeps at all times a cash reserve equal to at least twenty percent (20%) of its deposits and other obligations, of which reserve at least one-half shall be carried in the Bank of the United States and the balance in the bank's own vaults. Loans to States, Territories, or political subdivisions thereof shall be given preference whenever and wherever there is unemployment, or where the wage scale for common labor shall fall below a living annual wage as measured by a thirty-hour week at one dollar per hour. The Bank of the United States shall also make loans to the Farm Credit Administration secured by farm-loan bonds issued for the purpose of making farm loans or refinancing and scaling down existing farm debts, and to the Home Owners' Loan Corporation secured by home-loan bonds issued for the purpose of making home loans or refinancing and scaling down existing home mortgages.
Sec. 21. The Federal Reserve Board is hereby abolished, and all of its powers and duties are hereby transferred to the Board of Control of the Bank of the United States. No more Federal Reserve notes, Federal Reserve bank notes or National bank notes shall be issued after the enactment of this Act. All Federal Reserve notes, Federal Reserve bank notes and National bank notes shall be called in and retired, and in exchange for same, the Bank of the United States shall give "United States Money" upon the same security that the Federal Reserve notes, Federal Reserve bank notes or the National bank notes were issued. The bank receiving such "United States Money" in exchange for its Federal Reserve notes, Federal Reserve bank notes or National bank notes shall pay interest on the same at a rate not to exceed 1 per centum per annum.
Sec. 23. Whenever the Bank of the United States shall come into possession of, and become the owner of, any gold coin or gold bullion, it shall set the same aside and from time to time deliver the same to the Treasurer of the United States in exchange for an equal amount of any lawful money of the United States. Such gold shall be for the use of the Government of the United States in international dealings. The net earnings of the bank shall annually be appropriated by Congress for governmental expenditures.
Sec. 28. All Acts or parts of Acts inconsistent with the provisions of this Act are hereby repealed.
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