Page 127 - Fruits from a Poisonous Tree

Mel Stamper 111

however, needed capital to establish their new businesses in the new business
community to the south.
They went to Jebidiah and presented him with their receipts to reclaim
their gold. The other customers, to whom he had sold receipts, also wanted
gold for them so that they also might invest and take advantage of this
new treaty. The result was, of course, a disaster for Jebidiah. There was not
sufficient gold on deposit to cover the demand. He was dragged from his
shop and crucified on the spot.
That is how things were done in the criminal justice system of the time.
One night at the dinner table, Jebidiah’s two sons discussed the recent
events and decided that their father’s idea was still a viable option if it were
modified. The next day they opened their vault for business once again with
a few changes. First, the brothers demanded up to 200% security for all of
the receipts they issued to the customers who did not deposit actual gold
with them. The borrower pledged twice the value of what he received and
also paid an interest on the principle value borrowed. Another requirement
was that the receipts would not be redeemable except by giving a 90-day
notice of withdrawal. In addition, the brothers inserted on the loan contract
a clause which gave them a right to declare the loan immediately due and
payable, regardless of the due date on the note, and repayable only in gold.
Business, because of the treaty, was good for all and business prospered
until the king had a dispute with the neighboring sovereign and canceled
the treaty. The brothers began calling in the loans, foreclosed on all security,
liquidated the securities at a discount for a profit of 60% and were still able
to deliver to the depositors all of their gold within 90 days, per the deposit
agreement. They grew rich beyond belief and began to branch out to other
towns and countries. They were the worlds’ first fractional reserve bankers,
and the business plan hasn’t changed substantially for centuries.
This is how the Federal Reserve Bank and all of your local friendly
bankers operate today. Now you know how the system of fractional banking
works and how destructive it has been to any nation that has been foolish
enough to permit it.
Fractional reserve banking has been scientifically reconstructed for
the present needs of today. The receipts are now legally determined by our
government to be a replacement for the gold. If you look closely at your
“money,” you will notice that it is a “Federal Reserve Note.” A note is a debt
instrument. In the past, the receipt was an acknowledgment of the banker’s
debt to you, and the gold you had on deposit was payable on demand. Your
money (note) has no such payable on demand notice on it, and all you will
receive from the bank on payment demand is a blank stare. What we have
now is a debt instrument being used to pay off other debt instruments.