A review of the congressional record for March 9, 1933 identifies the intent of Congress to create a new money:
"Yet today we are told that the national credit will be
ruined if we undertake to finance $10,000,000,000 to save
the little man on the farm, the laboring man, the little poor
man, and every man in this country today who has a little
bank account, and not only will such people be benefited if
we guarantee bank deposits but we will make money available, by credit, through the little banks throughout the
length and breadth of this country to people who cannot
now borrow a thin dime at one of those banks."
and they further stated:
"IMMEDIATE RELIEF SOUGHT
The changes which the resolution seeks in title IV of the national
laws were designed to afford immediate relief to State banks.
Under the terms of the national legislation members of the Federal Reserve System have rediscount privileges on notes, drafts,
bankers' acceptances, and other forms of bank paper.
However, for State banks that are not members this phase
of business may be carried on solely through their correspondent
banks that are members of the Reserve System. In this way many
banks are placed virtually at the mercy of other banks without
having direct recourse to the Federal Reserve.
Also, under the emergency national laws members of the Federal Reserve banks may obtain currency from the Federal Reserve
up to 90 per cent of notes secured by collateral placed with the
central System. State banks that are not members would be
unable to obtain any of this currency under the bill as it stands.
It was in order to rectify this condition that Governor Lehman's
resolution asked the President and Congress to "make available
similar facilities to sound and worthy nonmember State banking
institutions so that they may be permitted to reopen coincidentally
with sound national banks and member banks."
And then when they met in joint session they documented that because there is a mortgage already on all of the homes and all of the property of the people, that it is impossible for any mortgage Company to claim that the people have placed their property as collateral for the loan when the Senate has made clear in Senate Doc. number 43, that the ownership of all property is in the State and any so-called individual ownership is only through mere usury, i.e.: through a parent ownership at the leisure of the State.
"The ultimate ownership of all property is in the State; individual
so-called “ownership” is only by virtue of Government, i.e. law,
amounting to mere user; and use must be in accordance with law,
and subordinate to the necessities of the State. The fact that citizens,
at a given time, may prefer specie to currency, or vice versa, can not
prevent Congress from enacting those laws which it deems necessary
to the maintenance of a proper monetary system. If the law makes
specie and currency equivalent for purposes of payment, a failure to
pay a given sum in specie, according to contract, cannot possibly
beget an obligation to pay a greater sum in legal-tender notes,
whatever premium men may choose to five for gold, when forced to
obtain it for a specific purpose, or when impelled by a spirit of
speculation, or by a distrust of Government. (Brown v. Welch, supra.)
While the courts cannot control our citizens’ preferences for one
kind of money over another kind, or prevent them from giving a
premium for the one or the other kind of money, when the fiscal
affairs of the Government necessitate the adoption of a certain policy,
expressed in constitutional legislative enactment, such as the
maintenance of a monetary system consisting of specie and currency,
to be acceptable interchangeably as to the value of the dollar, the
courts should not give effect to a stipulation impugning the power of
the legislature to make such laws, and should not apply those laws to
the construction of contracts in such a way as to defeat the legitimate
purpose of those laws, upon the enforcement of which the very
existence of the Government may depend, or, at least, the aggregate
well-being of the whole people is contemplated.
As it is not strictly correct to say that a contract is “invalid” merely
because the courts will not enforce it, since enforcement may be
withheld from valid promises because some provision of law
prohibits enforcement, such, for example, as the statute of
limitations, or the want of a legal consideration, valid contracts may
be made and carried out between parties, without regard to legal
limitations, so long as the jurisdiction of courts is not invoked to
enforce the agreement. But when judicial enforcement is sought, the
courts must find all pertinent constitutional laws tacitly written into
every contract they construe.
So a contract to pay dollars tacitly includes the laws of the United
States defining “dollar” and regulating the value thereof and
prescribing its usability as money. And a contract to pay dollars “in
gold” or in any other form of money of the United States, tacitly
incorporates into that contract the parity act declaring all forms of
money issued or to be issued by the United States at a parity. Hence,
the courts, in construing such a contract, must read into that contract
the parity act, and if the promisee brings an action on the contract,
the defendant’s plea that he has tendered in payment any money that
is lawful tender under the laws of the United States, is good, since all
forms of money are at a parity and the defendant’s plea, in effect, is
that he has tendered the equivalent of the thing promised."
So, we asked one simple question, are we not required to follow the law, and if we are required to follow the law is not Congress and the Federal Reserve including their member banks required to follow the law? And if the law says:
"Application for notes by Federal Reserve banks
Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 10A, 10B, 13, or 13A of this Act, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of section 14 of this Act, or bankers' acceptances purchased under the provisions of said section 14, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under section 14 of this Act or any other asset of a Federal reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks.
[12 USC 412. As amended by the acts of Sept. 7, 1916 (39 Stat. 754); June 21, 1917 (40 Stat. 236); Feb. 27, 1932 (47 Stat. 57); Feb. 3, 1933 (47 Stat. 794); Jan. 30, 1934 (48 Stat. 338); March 6, 1934 (48 Stat. 991); June 30, 1941 (55 Stat. 395); May 25, 1943 (57 Stat. 85); June 12, 1945 (59 Stat. 237); June 19, 1968 (82 Stat. 189); Nov. 10, 1978 (92 Stat. 3672); March 31, 1980 (94 Stat. 140); Dec. 6, 1999 (113 Stat. 1638); and Oct. 28, 2003 (117 Stat. 1193).]
You will notice that the above section was taken from the Federal Reserve website, which is word for word 59 Stat. 238, § 2- Please note that 12 U.S.C. § 412 does not match the text of the original statute, and should not be readily relied upon, without the congressional act by the statute at large.