PAPER MONEY Obligations of the United States Corporation (U.S.

) Nemo potest sibi debere defined: No one can owe to himself. Blacks Law Dictionary Sixth Edition (page 1038) Nemo prresumitur donare defined: No one is presumed to give. Blacks Law Dictionary Sixth Edition (page 1039) As A Substitute For Coined Money Federal reserve notes defined: Form of currency issued by Federal Reserve Banks in the likeness of noninterest bearing promissory note payable to bearer on demand. The federal reserve note (e.g. one, five, ten, etc. dollar bill) is the most widely used paper currency. Such have replaced silver and gold certificates which were backed by silver and gold. Such reserve notes are direct obligations of the United States. Blacks Law Dictionary Sixth Edition (page 613) PAPER MONEY defined: Bills drawn by a government against its own credit, engaging to pay money, but which do not profess to be immediately convertible into specie, and which are put into compulsory circulation as a substitute for coined money. Black's Law Dictionary Revised Fourth Edition (page 1266) PRINCIPAL defined: adj. Chief; leading; most important or considerable; primary; original. Highest in rank, authority, character, importance, or degree. As to principal Challenge; Contract; and Vein, see those titles. Blacks Law Dictionary Sixth Edition (page 1192) BOND defined: contract. An obligation or bond is a deed whereby the obligor, obliges himself, his heirs, executors and administrators, to pay a certain sum of money to another at a day appointed. But see 2 Shepl. 185. If this be all, the bond is called a single one, simplex obligatio; but there is generally a condition added, that if the obligor pays a smaller sum, or does, or omits to do some particular act, the obligation shall be void. 2 Bl. Com. 840. The word bond ex vi termini imports a sealed instrument. 2 S. & R. 502; 1 Bald. R. 129; 2 Porter, R. 19; 1 Blackf. R. 241; Harp. R. 434; 6 Verm. R. 40. See Condition; Interest of money; Penalty. It is proposed to consider: 1. The form of a bond, namely, the words by which it may be made, and the ceremonies required. 2. The condition. 3. The performance or discharge. 2.- I. 1. There must be parties to a bond, an obligor and obligee: for where a bond was made with condition that the obligor should pay twenty pounds to such person or persons; as E. H. should, by her last will and testament in writing, name and appoint the same to be paid, and E. H. did not appoint any person to, whom the same should be paid, it was held that the money was not payable to the executors of E. H. Hob. 9. No particular form of words are essential to create an obligation, but any words which declare the intention of the parties, and denote that one is bound to the other, will be sufficient, provided the ceremonies mentioned below have been observed. Shep. Touch. 367-8; Bac. Abr. Obligations, B; Com. Dig. Obligations, B 1. 3. - 2. It must be in writing, on paper or parchment, and if it be made on other materials it is void. Bac. Abr. Obligations, A. 4. - 3. It must be sealed, though it is not necessary that it should be mentioned in the writing that it is sealed. As to what is a sufficient sealing, see the above case, and the word Seal. 5. - 4. It must be delivered by the party whose bond it is, to the other. Bac. Abr. Obligations, C. But the delivery and acceptance

may be by attorney. The date is not considered of the substance of a deed, and therefore a bond which either has no date or an impossible one is still good, provided the real day of its being dated or given, that is, delivered, can be proved. 2 Bl. Com. 304; Com. Dig. Fait, B 3; 3 Call, 309. See Date. 6. - II. The condition is either for the payment of money, or for the performance of something else. In the latter case, if the condition be against some rule of law merely, positively impossible at the time of making it, uncertain or insensible, the condition alone is void, and the bond shall stand single and unconditional; for it is the folly of the obligor to enter into such an obligation, from which he can never be released. If it be to do a thing malum in se, the obligation itself is void, the whole contract being unlawful. 2 Bl. Com. 340; Bac. Abr. Conditions, K, L; Com. Dig. Conditions, D 1, D 2, D 3, D 7, D 8. 7. - III. 1. When, by the condition of an obligation, the act to be done to the obligee is of its own nature transitory, as payment of money, delivery of charters, or the like, and no time is limited, it ought to be performed in convenient time. 6 Co. 31 Co. Lit. 208; Roll. Abr. 436. 8. - 2. A payment before the day is good; Co. Lit. 212, a; or before action brought. 10 Mass. 419; 11 Mass. 217. 9. - 3. If the condition be to do a thing within a certain time, it may be performed the last day of the time appointed. Bac. Abr. Conditions, P 3. 10. - 4. If the condition be to do an act, without limiting any time, he who has the benefit may do it at what time he pleases. Com. Dig. Conditions, G 3. 11. - 5. When the place where the act to be performed is agreed upon, the party who is to perform it, is not obliged to seek the opposite party elsewhere; nor is he to whom it is to be performed bound to accept of the performance in another place. Roll. 445, 446 Com. Dig. Conditions, G 9 Bac. Abr. Conditions, P 4. See Performance. 12. - 6. For what amounts to a breach of a condition in a bond see Bac. Abr. Conditions, 0; Com. Dig. Conditions, M; and this Dict. tit. Breach. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856 BONDHOLDERS defined: Creditors of a business, whose evidence of debt is a bond issued by the business. Blacks Law Dictionary Sixth Edition (page 181) BOND INDENTURE defined: The contract between an issuer of bonds and the bondholders. An instrument of secured indebtedness issued by a corporation. See Indenture. Blacks Law Dictionary Sixth Edition (page 181) OBLIGATION OF CONTRACTS defined: By this expression, which is used in the constitution of the United States, is meant a legal and not merely a moral duty. 4 Wheat. 107. The obligation of contracts consists in the necessity under which a man finds himself to, do, or to refrain from doing something. This obligation consists generally both in foro legis and in foro conscientice, though it does at times exist in one of these only. It is certainly of the first, that in foro legis, which the framers of the constitution spoke, when they prohibited the passage of any law impairing the obligation of contract. 1 Harr. Lond. Rep. Lo. 161. See Impairing the obligation of contracts. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856

OBLIGEE or CREDITOR defined: contracts. The person in favor of whom some obligation is contracted, whether such obligation be to pay money, or to do, or not to do something. Louis. Code, art. 3522, No. 11. 2. Obligees are either several or joint, an obligee is several when the obligation is made to him alone; obligees are joint when the obligation is made to two or more, and, in that event, each is not a creditor for his separate share, unless the nature of the subject or the particularity of the expression in the instrument lead to a different conclusion. 2 Evans' Poth. 56; Dyer 350 a, pl. 20; Hob. 172; 2 Brownl. 207 Yelv, 177; Cro. Jac. 251. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856 OBLIGOR or DEBTOR defined: The person who has engaged to perform some obligation. Louis. Code, art. 3522, No. 12. The word obligor, in its more technical signification, is applied to designate one who makes a bond. 2. Obligors are joint and several. They are joint when they agree to pay the obligation jointly, and then the survivors only are liable upon it at law, but in equity the assets of a deceased joint obligor may be reached. 1. Bro. C. R. 29; 2 Ves. 101; Id. 371. They are several when one or more bind themselves each of them separately to perform the obligation. In order to become an obligor, the party must actually, either himself or by his attorney, enter into the obligation, and execute it as his own. If a man sign and seal a bond as his own, and deliver it, he will be bound by it, although his name be not mentioned in the bond. 4 Stew. R. 479; 4 Hayw R. 239; 4 McCord, R. 203; 7 Cowen; R. 484; 2 Bail. R. 190; Brayt. 38; 2 H. & M. 398; 5 Mass. R. 538; 2 Dana, R. 463; 4 Munf. R. 380; 4 Dev. 272. When the obligor signs between the penal part and the condition, still the latter will be a part of the instrument. 2 Wend. Rep. 345; 3 H. & M. 144. 3. The execution of a bond by the obligor with a blank, and a verbal authority to fill it up, and it is afterwards filled up, does not bind the obligor, unless it is redelivered, or acknowledged or adopted. 1 Yerg. R. 69 149; 1 Hill, Rep. 267; 2 N. & M. 125; 2 Brock. R. 64; 1 Ham. R. 368; 2 Dev. R. 369 6 Gill. & John. 250; but see contra, 17 Serg. & R. 438; and see 6 Serg. & Rawle, 308; Wright, R. 742. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856 ACCOMMODATION defined: An arrangement or engagement made as a favor to another, not upon a consideration received. Something done to oblige, usually spoken of a loan of money or commercial paper; also a friendly agreement or composition of differences. The word implies no consideration. While a party's intent may be to aid a maker of note by lending his credit, if he seeks to accomplish thereby legitimate objects of his own, and not simply to aid maker, the act is not for accommodation. See Accommodation maker. Blacks Law Dictionary Sixth Edition (page 16) ACCOMMODATION BILL OR NOTE defined: See Accommodation paper. Blacks Law Dictionary Sixth Edition (page 16) ACCOMMODATION INDORSEMENT defined: See Indorsement. Blacks Law

Dictionary Sixth Edition (page 16) ACCOMMODATION INDORSER defined: A party who places his name to a note without consideration for purpose of benefiting or accommodating some other party. U.C.C. 3-415. See also Indorsement. Blacks Law Dictionary Sixth Edition (page 16) ACCOMMODATION PARTY defined: One to whom the credit of the accommodation party is loaned, and is not necessarily the payee, since the inquiry always is as to whom did the maker of the paper loan his credit as a matter of fact; not third person who may receive advantage. See also Accommodation party. Blacks Law Dictionary Sixth Edition (page 16) ACCOMMODATION LOAN defined: Loan furnished as an act of friendship or assistance without tangible or full consideration; money or credit extended for such reasons. Blacks Law Dictionary Sixth Edition (page 16) ACCOMMODATION MAKER defined: One who puts his name to a note without any consideration with the intention of lending his credit to the accommodated party. In re Chamberlain's Estate, Cal.App., 109 P.2d 449, 454. U.C.C. 3-415. See also Accommodation party. Blacks Law Dictionary Sixth Edition (page 16) SECURITY defined: That which renders a matter sure; an instrument, which renders certain the performance of a contract. The term is also sometimes applied to designate a person who becomes the surety for another, or who engages himself for the performance of another's contract. See 3 Blackf. R. 431. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856 Nemo prresens nisi intelligat defined: One is not present unless he understands. Blacks Law Dictionary Sixth Edition (page 1038) ACCOMMODATION NOTE defined: One to which accommodating party has put his name, without consideration, to accommodate some other party, who is to issue it and is expected to pay it. U.C.C. 3-415. Blacks Law Dictionary Sixth Edition (page 16) ACCOMMODATION PAPER defined: An accommodation bill or note is one to which the accommodating party, be he acceptor, drawer, or indorser, has put his name, without consideration, for the purpose of benefiting or accommodating some other party who desires to raise money on it, and is to provide for the bill when due. Hickox v. Hickox, Tex.Civ.App., 151 S.W.2d 913, 917. Such must be executed for the purpose of loaning credit, and incidental benefit to party is insufficient. Morrison v. Painter, Mo.App., 170 S.W.2d 965, 970. Blacks Law Dictionary Sixth Edition (page 16, 17) PAPER defined: A manufactured substance composed of fibres (whether vegetable or animal) adhering together in forms consisting of sheets of various sizes and of different thicknesses, used for writing or printing or other purposes to which flexible sheets are applicable. .4 H. & N. 470. A written or printed document or instrument. A document

filed or introduced in evidence in a suit at law, as, in the phrase "papers in the case" and in "papers on appeal." Any writing or printed document, including letters, memoranda, legal or business documents, and books of account, as in the constitutional provision which protects the people from unreasonable searches and seizures in respect to their "papers" as well as their houses and persons. A written or printed evidence of debt, particularly a promissory note or a bill of exchange, as in the phrases "accommodation paper" and "commercial paper." Books are not paper within the meaning of the tariff act; Pott v. Arthur, 104 U.S. 735, 26 L.Ed. 909. The term "papers" does not mean newspapers or perhaps even include them within the meaning of a statute, the object of which is to prevent a jury from receiving any evidence, papers, or documents not authorized by the court. State v. Jackson, 9 Mont. 508, 24 P. 216. But the word includes photographs of deceased showing the nature of his wounds. People v. Balestieri, 23 Cal.App. 708, 139 P. 821, 823. Generally, the words "documents" and "papers" refer to particular instruments and writings bearing upon specific transactions, whereas "books of accounts" and "records" have reference to serial, continuous, and more permanent memorials of a concern's business and affairs. Cudahy Packing Co. v. U. S., C.C.A. Ill., 15 F.2d 133, 136. In English practice. The list of causes or cases intended for argument, called "the paper of causes." 1 Tidd, Pr. 504. See Paper Days. In General Accommodation paper. See that title. Commercial paper. See Commercial. Blacks Law Dictionary Revised Fourth Edition (page 1266) PURCHASER FOR VALUE defined: One who pays consideration for property or goods bought. Black's Law Dictionary Sixth Edition (page 1236) PURCHASER OF A NOTE OR BILL defined: The person who buys a promissory note or bill of exchange from the holder without his indorsement. Black's Law Dictionary Sixth Edition (page 1236) TO INDORSE defined: To write on the back. Bills of exchange and promissory notes are indorsed by the party writing his name on the back; writing one's name on the back of a writ, is to indorse such writ. 7 Pick. 117. See 13 Mass. 396. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856 INDORSEMENT defined: contracts. In its most general acceptation, it is what is written on the back of an instrument of writing, and which has relation to it; as, for example, a receipt or acquittance on a bond; an assignment on a promissory note. 2. Writing one's name on the back of a bill of exchange, or a promissory note payable to order, is what is usually called, an indorsement. It will be convenient to consider, 1. The form of an indorsement; and, 2. Its effect. 3.-1. An indorsement is in full, or in blank. In full, when mention is made of the name of the indorsee; and in blank, when the name of the indorsee is not mentioned. Chitty on Bills, 170; 13 Serg. & Rawle, 315. A blank indorsement is made by writing the name of the indorser on the back; a writing or assignment on the face of the note or bill would, however, be considered to have the force and effect of an indorsement. 16 East, R. 12. when an indorsement has been made in blank any after attempt to restrain the negotiability of the bill will be unavailing. 1 E.N. P. C. 180; 1 Bl. Rep. 295; Ham. on Parties 104. 4. Indorsements may also be

restrictive conditional, or qualified. A restrictive indorsement may restrain the negotiability of a bill, by using express words to that effect, as by indorsing it "payable to J. S. only," or by using other words clearly demonstrating his intention to do so. Dougl. 637. The indorser may also make his indorsement conditional, and if the condition be not performed, it will be invalid. 4 Taunt. Rep. 30. A qualified indorsement is one which passes the property in the bill to the indorsee, but is made without responsibility to the indorser; 7 Taunt. R. 160; the words commonly used are, sans recours, without recourse. Chit. on Bills, 179; 3 Mass. 225; 12 Mass. 14, 15. 5.-2. The effects of a regular indorsement may be considered, 1. As between the indorser and the indorsee. 2. Between the indorser and the acceptor. And, 3. Between the indorser and future parties to the bill. 6.-1. An indorsement is sometimes an original engagement; as, when a man draws a bill payable to his own order, and indorses it; mostly, however, it operates as an assignment, as when the bill is perfect, and the payee indorses it over to a third person. As an assignment, it carries with it all the rights, which the indorsee had, with a guaranty of the solvency of the debtor. This guaranty is, nevertheless, upon condition that the holder will use due diligence in making a demand of payment from the acceptor, and give notice of non-acceptance or non-payment. 13 Serg. Rawle, 311. 7.-2. As between the indorsee and the acceptor, the indorsement has the effect of giving to the former all the rights which the indorser had against the acceptor, and all other parties liable on the bill, and it is unnecessary that the acceptor or other party should signify his consent or knowledge of the indorsement; and if made before the bill is paid, it conveys all these rights without any set-off, as between the antecedent parties. Being thus fully invested with all the rights in the bill, the indorsee may himself indorse it to another when he becomes responsible to all future patties as an indorser, as the others were to him. 8.-3. The indorser becomes responsible by that act to all persons who may afterwards become party to the bill. Vide Chitty on Bills, ch. 4; 3 Kent, Com. 58; Vin. Abr. Indorsement; Com. Dig. fait, E 2; 13 Serg. & Rawle, 311; Merl. Repert. mot Endorsement Pard. Droit Com. 344-357; 7 Verm. 356; 2 Dana, R. 90; 3 Dana, R. 407; 8 Wend. 600; 4 Verm. 11; 5 Harr. & John. 115; Bouv. Inst. Index, h.t. A Law Dictionary Adapted To The Constitution And Laws Of The United States Of America And Of The Several States Of The American Union by: John Bouvier Revised Sixth Edition, 1856 Nemo contra factum suam venire potest defined: No man can contravene or contradict his own deed. The principle of estoppel by deed. Blacks Law Dictionary Sixth Edition (page 1037) Nemo duobus utatur officiis defined: No one should hold two offices, i.e., at the same time. Blacks Law Dictionary Sixth Edition (page 1037) Nemo patriam in qua natus est exuere, nec ligeantire debitum ejurare possit defined: No man can renounce the country in which he was born, nor abjure the obligation of his allegiance. Blacks Law Dictionary Sixth Edition (page 1038) Nemo plus juris ad alium transferre potest quam ipse habet defined: No one can transfer more right to another than he has himself. Blacks Law Dictionary Sixth Edition (page 1038) Nemo tenetur prodere seipsum defined: No one is bound to betray

himself. In other words, no one can be compelled to criminate himself. Blacks Law Dictionary Sixth Edition (page 1039) Nemo potest contra recordum verificare per patriam defined: No one can verify by the country against a record. The issue upon matter of record cannot be to the jury. A maxim of old practice. Blacks Law Dictionary Sixth Edition (page 1038) Nemo debet rem suam sine facto aut defectu suo amittere defined: No man ought to lose his property without his own act or default. Blacks Law Dictionary Sixth Edition (page 1037) Nemo alieno nomine lege agere potest defined: No one can sue in the name of another. Blacks Law Dictionary Sixth Edition (page 1037) Nemo de domo sua extrahi potest defined: No one can be dragged out of his own house. In other words, every man's house is his castle. Blacks Law Dictionary Sixth Edition (page 1037) Whereas pursuant to U.S. Code Title 28, 3002 Definitions (archived here) (15) "United States" means (A) a Federal corporation; (B) an agency, department, commission, board, or other entity of the United States; or (C) an instrumentality of the United States.

ACCOMENDA defined: In maritime law, a contract between the owner of goods and the master of a ship, by which the former intrusts the property to the latter to be sold by him on their joint account. In such case, two contracts take place: First, the contract called mandatum, by which the owner of the property gives the master power to dispose of it; and the contract of partnership, in virtue of which the profits are to be divided between them. One party runs the risk of losing his capital; the other, his labor. If the sale produces no more than first cost, the owner takes all the proceeds. It is only the profits, which are to be divided. Blacks Law Dictionary Sixth Edition (page 16)

Congressional Record, March 9, 1933 on HR 1491 p. 83. "Under the new law the money is issued to the banks in return for government obligations, bills of exchange, drafts, notes, trade acceptances, and bankers acceptances. The money will be worth 100 cents on the dollar, because it is backed by the credit of the nation. It will represent a mortgage on all the homes, and other property of all the people of the nation." Whereas defined pursuant to titles eighteen sections eight: The term "obligation or other security of the United States" includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps. Whereas defined pursuant to: 18 U.S.C. 8, frns are obligation[s]of the United States. Whereas defined pursuant to: 31 U.S.C. 31742obligations of the United States, shall be exempt from taxation by or under state or municipal or local authority. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except - (1) a nondiscriminatory franchise tax or another nonproperty tax instead of a franchise tax, imposed on a corporation; and (2) an estate or inheritance tax. (emphasis added) Federal reserve notes are not money until they are monetized and issued by a Federal reserve bank. That those Federal reserve notes could be issued by the Federal Reserve Board, not by any Bank per se; for a one singular purpose, namely, for the purpose of making advances to Federal reserve banks and for no other purpose. To obtain notes, a Federal reserve bank must pledge collateral equal to the face value of the note. Collateral must consist of the following assets, alone or in any combination: 1) Gold certificates, 2) Special drawing right certificates, 3) U.S. government securities, and 4) Eligible paper, as described by statue. Federal Reserve notes are obligations of the United States, and have a first lien on assets of the issuing Federal Reserve Bank. Money without backing is worthless. Federal reserve notes are legal tender currency whereas defined pursuant to: (31 U.S.C. 5103). They are issued by the twelve reserve banks defined pursuant to section 16 of the federal reserve act of 1913 (12 U.S.C. 411) a commercial bank which belongs to the Federal Reserve System can obtain Federal reserve notes from the Federal reserve bank in its district whenever it wishes, but it must pay for them in full, dollar for dollar, by drawing down its account with its district Federal reserve bank. The Federal reserve bank in turn obtains the notes from the bureau of engraving and printing in the United States Treasury Department. It pays to the

bureau the cost of producing the notes. The Federal reserve notes then become liabilities of the twelve Federal reserve banks. Because the notes are Federal reserve liabilities, the issuing banks records both a liability and an asset when it receives the notes from the bureau of engraving and printing, and therefore does not show any earnings as a result of the transaction (double entry bookkeeping). In addition to being liabilities of the Federal reserve banks, Federal reserve notes are obligations of the United States government whereas defined pursuant to: (12 U.S.C. 411). Congress has specified that a Federal reserve bank must hold collateral (chiefly gold certificates and United States securities) equal in value to the Federal reserve notes which that bank receives whereas defined pursuant to: (12 U.S.C. 412). The purpose of this section, initially enacted in 1913, was to provide backing for the note issue. The idea was that if the Federal Reserve System were ever dissolved, the United States would take over the notes (liabilities) thus meeting the requirements of [12 U.S.C.] 411, but would also take over the assets, which would be of equal value. The notes are a first lien on all the assets of the Federal reserve banks, as well as on the collateral specifically held against them whereas defined pursuant to: (12 U.S.C. 412). Federal reserve notes are not redeemable in gold or silver or in any other commodity. They have not been redeemable since 1933. Thus, after 1933, a Federal reserve note did not represent a promise to pay gold or anything else, even though the term note was retained as part of the name of the currency. In the sense that they are not redeemable, Federal reserve notes have not been backed by anything since 1933. They are valued not for themselves, but for what they will buy. In another sense, because they are a legal tender, Federal reserve notes are backed by all goods and services in the economy. Frns are both liabilities and assets, so what are they? Accounting units (double entry bookkeeping). What else could they be? The issuing bank records both a liability and asset when it receives the notes from the bureau of engraving and printing, and therefore does not show any earnings as a result of the transaction. This implies that the liabilities and assets inherent in each frn are equal, and therefore the value of any frn is zero. i.e., I have a $100 frn that represents $100 in assets and $100 in liabilities what is my frn worth? Subtract the liabilities from the assets. If theyre equal ($100 - $100), the answer is zero. So what is my frn? Its a unit of measure, no different from inches, feet, pounds, tons, and centigrams. Its an accounting unit. A number. What is the tax on a number? Is the tax on 100,000 more than the tax on $1,000? It depends. 100,000 what? 1,000 what? The tax on 100,000 dollars is clearly more than the tax on 1,000 pennies. The tax on 1,000 dollars and 100,000 pennies is identical. And a tax on 1,000 pennies is greater than the tax on 100,000 grains of sand. The taxable item is not the unit of measurement, but the commodity it describes. Therefore, is the tax on $100 in gold-backed money the same as the tax on $100 frn? Can people be taxed on the basis of an income denominated in units of measurement that the issuing Federal reserve bank implicitly says are worth zero? If the Federal reserve bank can count a frn as both an asset and liability, can I do the same and also have no earnings to be taxed? There is some supporting law. Defined pursuant to: 31 U.S.C. 742 (which deals with public debt): exemption from taxation. Except as otherwise provided by law, all stocks, bonds, treasury notes, and

other obligations of the United States, shall be exempt from taxation by or under state or municipal or local authority. This exemption extends to every form of taxation that would require that either the obligations or the interest thereon, or both, be considered, directly or indirectly, in the computation of the tax, except nondiscriminatory franchise or other non-property taxes in lieu thereof imposed on corporations and except estate taxes or inheritance taxes. (R.S. & 3701; Sept. 22, 1959, Pub. L. 86-346, Title I, 105(a), 73 Stat. 622.) [emph. add.] Now consider, whereas defined pursuant to: 18 U.S.C. 8: obligation or other security of the United States (Inc) defined. the term obligation or other security of the United States includes all bonds, certificates of indebtedness, national bank currency, federal reserve notes, federal reserve bank notes, coupons, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any act of congress, and canceled united states stamps. [emph. add.]

10