Common Law_ How the British Legal System Has Been Used to Enslave Us

8/13/2019 Common Law_ How the British Legal System Has Been Used to Enslave Us

1/46

HOW THE BRITISH LEGAL SYSTEM HAS BEEN USED TO ENSLAVE US

The following brief wa !re en"e# "o a Gran# $%r& in "he S"a"e of 'alifornia (ir(a )*+, in ana""e-!" "o (orre(" .%#i(ial ab% e of !eo!le in/ol/e# in !a"rio" an# in(o-e "a0 !ro"e "-o/e-en" 1 Man& !eo!le were being in(ar(era"e# a !oli"i(al !ri oner of wha" i a!!aren"l& a

2 ha#ow go/ern-en"2 now in (on"rol of "he USA1 The e !a"rio" were a""e-!"ing "o e#%(a"e a-an& of "he general !%bli( a wo%l# hear "heir -e age1

Unfor"%na"el&3 hor"4 igh"e# elf4in"ere " an# a!a"h& ee- "o ha/e !re/aile#1 The na-e of "hea%"hor i %n5nown1 Al"ho%gh "hi i ba e# %!on "he A-eri(an & "e-3 "heir & "e- ofgo/ern-en" an# "he 'ana#ian & "e-3 are b%" 2 li! 23 or -ore a!!ro!ria"el& 2 %(5er 2 off "hea-e !lan"3 "he Bri"i h li-i"e# -onar(h&1 Mo " of "he following3 "herefore3 i #ire("l& a!!li(able"o "he 'ana#ian #ile--a1

A1 INTRODU'TION

We ha/e a !roble- an# we are here "o anal&6e "ha" !roble-1 Wh& #o "he (o%r" ref% e "o a#-i"(er"ain arg%-en" an# (i"e of "he Uni"e# S"a"e 'on "i"%"ion7 An# f%r"her3 fin# o-e in(on"e-!" of (o%r" if "he& !er i " in #oing o7 Wh& i "here o li""le .% "i(e in o%r (o%r" "o#a&7O%r !roble- i 3 we ha/e been figh"ing "he wrong "hing44!la&ing "he wrong ball ga-e1

We ha/e fo%n# "ha" we are no" in 'o--on Law %n#er "he 'on "i"%"ion 44 in fa("3 we8re no" inE9%i"& %n#er "he 'on "i"%"ion 44 we are in Mari"i-e Law3 "he Law of 'o--er(e3 "he Law ofA#-iral"&1

$% " wha" i "hi Law of A#-iral"&7 A#-iral"& Law en(o-!a e all (on"ro/er ie ari ing o%"of a(" #one %!on or rela"ing "o "he ea3 an# 9%e "ion of !ri6e1 :ri6e i "ha" law #ealing wi"h

war3 an# "he !oil of war 44 %(h a (a!"%re of hi! 3 goo# 3 -a"erial 3 !ro!er"& 44 bo"h real an# !er onal3 e"(1

Mari"i-e Law i "ha" & "e- of law "ha" !ar"i(%larl& rela"e "o (o--er(e an# na/iga"ion1Be(a% e of "hi fa("3 a &o% will ee3 &o% #on8" ha/e "o be on a hi! in "he -i##le of "he ea "o be%n#er A#-iral"& $%ri #i("ion1 Thi .%ri #i("ion (an a""a(h -erel& be(a% e "he %b.e(" -a""erfall wi"hin "he (o!e of Mari"i-e Law 44 an#3 bill 3 no"e 3 (he9%e an# (re#i" are wi"hin "he(o!e of Mari"i-e Law1

A#-iral"& Law grew an# #e/elo!e# fro- "he har h reali"ie an# e0!e#ien" -ea %re re9%ire# "o%r/i/e a" ea1 I" ha /er& e0"en i/e .%ri #i("ion of -ari"i-e (a e 3 bo"h (i/il an# (ri-inal1Be(a% e of i" gene i 3 i" (on"ain a har h e" of r%le an# !ro(e#%re where "here i no righ" "o"rial b& .%r&3 no righ" "o !ri/a(&3 e"(1 In o"her wor# 3 "here are no righ" %n#er "hi .%ri #i("ion 44onl& !ri/ilege gran"e# b& "he 'a!"ain of "he -ari"i-e /o&age1

;or in "an(e< in "hi .%ri #i("ion "here i no %(h "hing a a righ" no" "o be (o-!elle# "o "e "if&again " one elf in a (ri-inal (a e 44 "he 'a!"ain (an= howe/er3 if he wi he 3 gran" &o% "he

!ri/ilege again " elf4in(ri-ina"ion1 "here8 no %(h "hing a a righ" "o % e &o%r !ro!er"& on "he !%bli( highwa& 44


2/46

b%" "he 'a!"ain -a& gran" &o% "he !ri/ilege "o #o o3 if he (hoo e = "here i no %(h "hing a arigh" "o o!era"e &o%r own b% ine 44 onl& a !ri/ilege allowe# a long a &o% !erfor- a((or#ing"o "he (a!"ain8 reg%la"ion 1

Ha/ing i#en"ifie# "he &-!"o- of "he !roble-3 we -% " #iagno e "he (a% e "o fin# a ol%"ion1We ha/e been figh"ing "he effe(" "oo long while "he #i ea e rage %naba"e#1 Sin(e we ha/ei#en"ifie# "he (a% e3 an# %n#er "an# i" na"%re an# (hara("eri "i( 3 we >ho!ef%ll&? (an b%il# awinning (a e1

In -ar halling o%r infor-a"ion an# fa(" i" i ne(e ar& "o go ba(5 in "i-e1 Le" % e0a-ine "hee/i#en(e an# fa(" < Ba(5 a" "he "i-e3 .% " before "he re/ol%"ion 44 when o%r 'olonie werefe "ering an# "hrea"ening re/ol" fro- "he @ing 44 when we ha# "he 'o--on Law of "he'olonie 1 The @ing8 -en (a-e o/er "o (olle(" "heir "a0e 1 The& #i#n8" % e "he 'o--on Lawon % 3 "he& a!!lie# A#-iral"& Law on % 44 arre "e# !eo!le3 hel# S"ar 'ha-ber !ro(ee#ing an##enie# % o%r (o--on righ" a Engli h-en1 Thi 3 -ore "han an& one "hing3 %re3 "a0a"ion

wi"ho%" re!re en"a"ion wa !ar" of i" 44 b%" i" wa #enial of o%r 'o--on Law righ" b& !%""ing% %n#er A#-iral"& Law wherein "he @ing wa "he 'han(ellor1 Hi agen" #e!ri/e# % of .%r&"rial 3 !%" % on hi! 3 en" % #own "o !or" in "he Bri"i h We " In#ie 44 where -an& #ie# offe/er in "he hol# of hi! 44an# /er& few re"%rne#1 Thi wa one of "he -ain rea on for "here/ol%"ion in )CC 1

What is the Common Law? Hi "ori(all&3 "he 'o--on Law (a-e fro- "he Anglo4Sa0on'o--on Law in Englan#1 I" e0i "e#3 an# (on"rolle# an# r%le# "he lan# of Englan# !re/io% "o"he reign of Willia- "he 'on9%eror >) ?3 when "he Nor-an (on9%ere# Anglo4Sa0onEnglan#1 In i" wa "he Gol#en R%le R%le of 'i/il $% "i(e "ha" in "he nega"i/e for- rea# < 2Dono" %n"o o"her a &o% wo%l# no" ha/e o"her #o %n"o &o%12 :1S1 The !o i"i/e for- #eal wi"hSo(ial $% "i(e1

Where #i# "hi law (o-e fro- 44 "hi Anglo4Sa0on 'o--on Law7 Di# i" (o-e fro-'hri "iani"&8 in"ro#%("ion "o Englan#7 A!!aren"l& no"1 I" i on re(or# in "he Va"i(an 444 Theearl& 'hri "ian -i ionarie re!or"e# "ha" "he !eo!le of Nor"hern Ger-an& 2alrea#& ha/e "helaw21 I" i % !e(" "ha" earl& Hebrew "in "ra#er "a%gh" "he e !eo!le "he law -an& &ear before'hri "1

So wha" ha ha!!ene#7 The Engli h !eo!le ha# "hi i-!le an# !%re 'o--on Law of righ"an# !ro!er"& righ" 1 B%" "here al o e0i "e# along i#e of i"3 e/en in "ho e #a& 3 "he law of(o--er(e3 whi(h i "he Mari"i-e Law1 The earlie " re(or#e# 5nowle#ge we ha/e of Mari"i-eLaw i in "he I le of Rho#e 3 * B1 '1 44 "hen "here8 "he Law of Oleron3 Law of "heHan ea"i( Leag%e3 Mari"i-e Law3 whi(h wa !ar" an# !ar(el of "heir (i/il law1 Thi i "he lawof (o--er(e3 wherea "he 'o--on Law wa "he law "ha" ha# "o #o wi"h "he lan#3 an# wi"h "he

!eo!le of "he lan#1

Willia- "he 'on9%eror %b.%ga"e# all "he Sa0on "o hi r%le e0(e!" Lon#on Town1 The-er(han" (on"rolle# "he (i"& an# "heir wall hel# off "he in/a#er 1 The -er(han" were able "o

!ro/i ion "he (i"& b& hi! an# Willia-8 ol#ier were no" able "o !re/ail1


3/46

;inall&3 a(5nowle#ging "ha" he (o%l# no" "a5e "he 'i"& b& for(e3 he re or"e# "o (o-!ro-i e1The -er(han" #e-an#e# 2"he 2Le0 Mer(an"oria2 >"he Mari"i-e Law?1 Thi wa gran"e# an#re-ain "o "hi #a&1 The inner (i"& of Lon#on ha i" !e(ial law where "he Mer(han"F Law i

"he law of "he 'i"& of Lon#on1

:ro"e("ion of "heir hi!!ing in#% "r& wa one of "he -ain rea on for "he re i "an(e b& "he-er(han" of Lon#on1 The Sa0on 'o--on Law ha# no !ro/i ion for fi("i"io% !er on(o-!anie or li-i"e# liabili"&= b%"3 re(ogni6e# onl& na"%ral !er on an# f%ll liabili"&1 TheRo-an 'i/il Law wa a #eri/a"i/e of "he Mari"i-e Law an# i "he ba i of 'i/il Law in -o "E%ro!ean (o%n"rie 1 I#en"if&ing fea"%re of Ro-an 'o--on Law are "he % age of !re(e#en"an# .%#ge-en" b& -agi "ra"e in (o%r" of S%--ar& $%ri #i("ion1

A" R%nn&-e#e3 in ),) 3 "he Baron of Englan# for(e# @ing $ohn "o ign "he Magna 'ar"a3 oneof e/eral #o(%-en" e "abli hing "he f%n#a-en"al righ" of "he Engli h !eo!le "o "hi #a&3 The

o"her being "he re/i ion of "he Magna 'ar"a in ),, 3 "he :e"i"ion of Righ" >) ,+? an# "he Bill ofRigh" >) +*? 1 The !ri-ar& ob.e("i/e an# (on"en" of "he Magna 'ar"a wa "he !rohibi"ion of "he% e of S%--ar& .%ri #i("ion >"he Ro-an or A#-iral"& Law? a a -ean of %na%"hori6e#"a0a"ion an# ei6%re of !ro!er"& wi"ho%" #%e !ro(e of Law or .% " (o-!en a"ion1 The (oloni "were3 on "he whole3 /er& well (hoole# in "he 'o--on Law an# were 9%i"e aware of "hewrong "ha" @ing an# :arlia-en" were (o--i""ing again " "he-1 Thi e/en"%all& for(e# "he- "orebel1

The 'o--on Law "ha" we ha# in o%r lan# i !arallel "o ano"her an(ien" law1 Yo% will fin# "ha"when o%r ;o%n#ing ;a"her e" %! "he #e(lara"or& "r% "3 5nown "o % a "he De(lara"ion of2In#e!en#en(e23 $effer on li "e# )+ grie/an(e an# in ea(h one of "he e grie/an(e he howe#how we were being #enie# o%r righ" a free4born Engli h-en1 So3 he -a#e an a!!eal "o "hena"ion of "he worl# "ha" "he a(" being (o--i""e# again " "he (oloni " were a(" (o--i""e#again " "he Law of Na"ion 3 an# i" "he De(lara"ion of In#e!en#en(e be(a-e an or#inan(e3 a

!%bli( "r% "3 wi"hin "he Law of Na"ion 44 an# "ho e ;o%n#ing ;a"her 5new "ha" "he& wo%l#ha/e "o figh" "o win "he in#e!en#en(e "ha" "he& ha# o #e(lare#1

Af"er "he Engli h %rren#ere# a" Yor5"own3 "he Ar"i(le of 'onfe#era"ion !erio# followe#1Then o%r ;o%n#ing ;a"her i-!le-en"e# "he 'on "i"%"ion in"o "hi :%bli( Tr% "3 whi(h wa "he-e(hani - "o !ro/i#e for % o%r ho!e an# a !ira"ion 1 In "he 'on "i"%"ion &o% will fin#

!rin(i!le = b%"3 no" ne(e aril& "ho e fo%n# in "he De(lara"ion of In#e!en#en(e1

So-e of "he wri"er of "he 'on "i"%"ion wa a li""le "oo re "ri("i/e1 I" wa generall& (on(e#e#3for in "an(e3 "ha" "he !eo!le ha# "he righ" "o bear ar- 3 b%" "he& al o 5new "ha" if we e/er were

!la(e# or allowe# o%r el/e "o be bro%gh" %n#er Mari"i-e A#-iral"& Law (on(erning o%r !er on an# !ro!er"&3 we wo%l# ha/e #ire nee# of a g%aran"ee for o%r righ" 44 "h% 3 "he "ena-en#-en" were a##e# "o "he 'on "i"%"ion3 an# "ha" be(a-e "he %b "an"i/e !ar" of "he'on "i"%"ion1 Ar"i(le III3 Se("ion ,3 of "he U1 S1 'on "i"%"ion #efine "he Mari"i-e A#-iral"&

.%ri #i("ion1


4/46

How we ha/e been "ri(5e# o%" of o%r 'o--on Law righ" = an#3 in"o "he A#-iral"& (o%r" 7How ha e9%i"& a well a A#-iral"& been (orr%!"e#7 How ha "he ;e#eral Go/ern-en" -a#ei" al-o " i-!o ible for % "o re(ei/e o%r (on "i"%"ional righ" 44 o%r %b "an"i/e righ" in "he'on "i"%"ion7

Now3 "o %n#er "an# "he 'on "i"%"ion 44 we -% " e0a-ine "he De(lara"ion of In#e!en#en(e an#"ho e -en who igne# i"3 an# !le#ge# "heir li/e 3 liber"&3 fa-il&3 !ro!er"&3 an# "heir honor "o"hi a(re# "r% "1 All of "he e -en were /er& 5nowle#geable an# learne# in "he 'o--on Law 44"he& 5new "he law be(a% e "he& "%#ie# "he law3 "he& -a& no" ha/e ha# a high (hool e#%(a"ion-an& of "he- 1 B%" "he& (o%l# rea#3 an# "he& rea# an# "%#ie# law1 The& were -en of "he ageor rea on an# "he& 5new an# "he& %n#er "oo#1 The& 5new e0a("l& wha" "he 5ing wa #oing1The& 5new "he law1

@nowle#ge i a /er& i-!or"an" "hing1 An#3 a $a-e Ma#i on wro"e &ear ago < 2@nowle#gewill fore/er go/ern ignoran(e3 an# a !eo!le who -ean "o be "heir own go/ernor -% " ar-"he- el/e wi"h "he !ower whi(h 5nowle#ge gi/e 12 E#%(a"ion ho%l# ne/er be "er-inalJ

The ;ir " A-en#-en" "o "he U S 'on "i"%"ion (i"e 2;ree#o- of Religion2 "ha" in a("%al fa(" i2;ree#o- of E#%(a"ion2 in(e "he (h%r(h (on"rolle# e#%(a"ion3 a" "he "i-e of wri"ing1

Now3 "here i a (hronologi(al e9%en(e of e/en" "ha" !la(e# % where we are "o#a&1 We (anal-o " a %re &o% "ha" &o% will re.e("3 or wan" "o re.e("3 !ar" of wha" &o% are abo%" "o ee an#hear1 There i a "heor& 5nown a "he Theor& of 'ogni"i/e Di onan(e T'D "ha" hol# "ha" "he-in# in/ol%n"aril& re.e(" infor-a"ion no" in line wi"h !re/io% "ho%gh" an#Kor a("ion 1 Bra(e&o%r elf3 "he following -e age -a& be en"irel& #ifferen" fro- an&"hing &o% here"ofore

belie/e# "o be "r%e1 If &o% are %naware3 &o% are %naware of being %nawareJ

BUILDING THE CASE

The fir " "e! in b%il#ing an& (a e whi(h ha a (han(e of winning i "o anal&6e "he !roble-1 A(o--on !a""ern for #oing "hi i "o re(ogni6e a !roble- "ha" nee# an wering= anal&6e "he

!roble- b& fir " "a"ing i"= rea(h a a"i fa("or& .%#g-en"= an# "hen #efen# o%r .%#g-en"1 In !re!aring o%r (a e3 o%r legal re ear(h will be #e"er-ine# en"irel& b& "he fa(" of "he (a e for3wi"ho%" fa(" 3 "he law i -eaningle 1 In -ar halling o%r fa(" we nee# "o 5ee! a few g%i#ing

!rin(i!le in -in# o we aren8" le# a "ra&< we -% " #i (o%n" !re(on(e!"ion = !o "!one .%#ge-en" = an# we -% " ob er/e for a !%r!o e3 5now wh& we are ob er/ing an# "i(5 "orele/an" fa(" abo%" "he (a e1 The an wer -% " be ba e# on e/i#en(e3 !re-i e an# inferen(e 1

THE 'OMMON LAW

Le"8 e0!lore "he 'o--on Law in #e!"h= an#3 i" e-bo#i-en" in o%r 'on "i"%"ion1 :robabl&one of "he be " wa& of e0!laining wha" "hi 'o--on Law i 3 i "o e0!lain wha" i" i no" 44 "o(o-!are i" "o i" an"i"he i 1 There are3 f%n#a-en"all&3 "wo (o-!e"ing & "e- of -an4-a#e lawin "he worl# "ha" are in (on "an" i#eologi(al (onfli(" again " ea(h o"her1 One i "he 'o--onLaw an# "he o"her i "he 'i/il Law3 or Ro-an 'i/il Law1


5/46

A brief "%#& of "he !hilo o!hi( ba(5gro%n# i !re en"e# in or#er "o gra ! "he ignifi(an(e of"he #ifferen(e in "he "wo & "e- 1 A "ri4%ni"& of Go# or3 S%!re-e Being (on(e!" 3 (o-!o e#of< )1 Go# I >"he Go# o%" "here?3 ,1 Go# Wi"hin >Go# in#welling ea(h in#i/i#%al?3 an#3 1Wi"hin Go# >"he !er on being a !ar" of Go#3 a (ell in "he bo#& of Go#3 e"(?3 are "he ba i(

b%il#ing blo(5 of religio% %n#er "an#ing3 "he ba i( ele-en" of -an8 religion an# religio%

in "i"%"ion 1 A balan(e# "ri4%ni"&3 regar#le of (on(e!" 9%ali"&3 wo%l# -a5e for a har-onio%religio% an# o(ial "r%("%re1 >So-e of "he Nor"h A-eri(an In#ian "ribe a(hie/e# %(h area onabl& balan(e# !la"ea% in "heir (%l"%re?1 Howe/er3 o-e o(iall& #o-ina"ing (%l"%re 3 %(ha $%#ai -3 are #o-ina"e# b& )3 an# a bi" of 1 B%##hi - (all -o "l& on wi"h o-e ,1'on i#er where one wo%l# !la(e 'o--%ni -3 Oligar(hi( #o-inan(e3 A-eri(an re!%bli(ani -3"he Renai an(e7

One (an fin# "he e (on(e!" r%ling an(ien" (i/ili6a"ion 3 an# e0"en#ing in"o "he /er& roo" of o%r(%rren" (on(e!" of "a"ehoo#1 The an(ien" Gree5 (i"& "a"e #e/elo!e# in "wo3 an# o!!o ing#ire("ion be(a% e "heir !hilo o!hi( "ho%gh" ga/e o-e "he 2Go# i 2 (on(e!" in i ola"ion "o "heo"her "wo (on(e!" 3 while "he o"her "oo5 "he 2Go# wi"hin2 a "heir ole (on(e!"1 One wa

Oligar(hi(3 "he o"her wa Re!%bli(an1 Ari "o"le wa a !o5e -an of "he fir "3 :la"o3 of "hee(on#1 The fir " lea# "o "he final (on(l% ion "ha" -an i an e/ol/e# ani-al= an#3 a "hi "hrea#of belief "r%("%re (o-e #own "o o%r (%rren" era1

One of "he "ronge " of %(h belief "r%("%re re i#e wi"hin "he (%rren" h%-ani " -in#4 e" 44 "heUni/er e i > %!!o e#l&? #e"eriora"ing an# re"%rning "o ba i( ele-en" 3 44 o "oo wo%l# -anre/er" "o lower for- of ani-ali -3 if lef" on hi own3 wi"ho%" #i/inel& a!!oin"e# lea#er 3 "heoligar(h 3 "he (a!"ain of "he hi!1 The (%l" of Mo"her Ear"h >En/iron-en"ali -? fall in"o "hi(hool of "ho%gh"1

The Re!%bli(an 2Go# wi"hin2 o(ie"& belie/e in "he wor"h an# re !on ible na"%re of "hein#i/i#%al1 In a "r%e Re!%bli(3 re!re en"a"i/e are a!!oin"e# an# gi/en re !on ibili"& for "he

!%bli( goo# a 2 er/an" 21 De-o(ra(& i an oligar(hi( -e(hani - "o a!!ea e "ho e !eo!lewho b& na"%re reall& are Re!%bli(an1 A De-o(ra(& allow "he !eo!le "o (hoo e "heir2lea#er 23 "heir la/e4-a "er 1 The Oligar(h -ani!%la"e "he e(ono-i( an# o(ial "r%("%re oa "o (rea"e a "%r-oil "o 5ee! "heir %b.e(" (on "an"l& "ri/ing for "he ba i( h%-an in "i"%"ion <elf4-ain"enan(e3 elf4!er!e"%a"ion an# elf4gra"ifi(a"ion= an#3 ne/er allow "he e "o rea(h a !oin"where Re!%bli(an "ho%gh"3 (rea"i/i"& an# al"r%i -3 -a& be(o-e e "abli he#1

So3 wi"h "hi ba(5gro%n#3 &o% -igh" be""er %n#er "an# "he #ifferen(e be"ween "he oligar(hi(Mari"i-e Law an# "he Re!%bli(an enhan(ing Sa0on 'o--on Law1 The oligar(hi(en"re!rene%r8 o/er"hrow of an(ien" I rael re!%bli(an for- of go/ern-en" i re(or#e# in )Sa-%el3 'ha!"er + > o-e wor"hwhile rea#ing?1

To (on i#er "he /al%e of "he 2Go# wi"hin2 (on(e!" "o o(ie"&3 "%#& "he effe(" of "he re %l" of"he 'o%n(il of ;loren(e >) *? (alle# b& "he :o!e of "he Ro-an 'h%r(h of "ha" "i-e3 a" whi(h"he Do("rine of 2The ;ilio9%e2 >'hri " in#welling? wa e "abli he#1 A("%all&3 i" wa a re/i/al of"he "ea(hing of S"1 A%g% "ine an# :hilo of Ale0an#ria1

The an"i4:hilo in"rig%e %rro%n#ing "he Ni(ene 'o%n(il an# i" re %l"ing Ni(ene 'ree# i a


6/46

"%#& in i" elf regar#ing "he i-!o i"ion of oligar(h& an# i" a((o-!an&ing Ro-an #i("a"or "&!eof r%le o/er "he 'h%r(h 1 E/en "ho%gh i" wa no" a((e!"e# b& "he Ea "ern >B&6an"ine? Ri"e an#"he $e %i" 3 i" re %l"e# in "he Renai an(e3 "he Age of Rea on3 grea" ar"i "i( e0!re ion3 an# "here!%bli(an -o/e-en" in E%ro!e an# A-eri(a1$1 Re%ben 'lar53 a for-er US Un#er4Se(re"ar& of S"a"e an# A-ba a#or "o Me0i(o3 %((in("l&

"a"e# "he !rin(i!le an# a!!li(a"ion of "he e "wo & "e- of law when he wro"e< 2Briefl&3an# "a"e# in general "er- 3 "he ba i( (on(e!" of "he e "wo & "e- wa a o!!o i"e a "he !ole 1In "he 'i/il Law3 "he o%r(e of all law i "he !er onal r%ler3 whe"her3 5ing3 or e-!eror= he io/ereign1 In "he 'o--on Law3 (er"ainl& a #e/elo!e# in A-eri(a3 "he o%r(e of all law i "he

!eo!le1 The&3 a a whole3 are o/ereign1

D%ring "he (en"%rie 3 "he e "wo & "e- ha/e ha# an al-o " #ea#l& ri/alr& for "he (on"rol ofo(ie"&3 "he 'i/il Law an# i" f%n#a-en"al (on(e!" being "he in "r%-en" "hro%gh whi(ha-bi"io% -en of geni% an# elfi hne ha/e e" %! an# -ain"aine# #e !o"i - < "he 'o--onLaw3 wi"h i" ba i( !rin(i!le 3 being "he in "r%-en" "hro%gh whi(h -en of e9%al geni% 3 b%"wi"h lo/e of -an5in# b%rning in "heir o%l 3 ha/e e "abli he# an# !re er/e# liber"& an# free

in "i"%"ion 1 The 'on "i"%"ion of "he Uni"e# S"a"e e-bo#ie "he lof"ie " (on(e!" &e" fra-e# of"hi e0al"e# (on(e!"12

Th% 3 o%r heri"age of free#o- i a #ire(" an# !ro0i-a"e re %l" of "he 'o--on Law3 #eri/ing i"a%"hori"& olel& fro- % age an# (% "o- of i--e-orial an"i9%i"&1 The 'o--on Law i "helegal e-bo#i-en" of !ra("i(al (o--on en e3 an#3 i" g%i#ing "ar ha alwa& been "he r%le ofrigh" an# wrong 4"he Gol#en R%le1

The 'o--on Law3 a e-bo#ie# in "he US 'on "i"%"ion3 for "he !ro"e("ion an# e(%ri"& of !er on an# !ro!er"&3 i S%b "an"i/e 'o--on Law 4 > %b "an"i/e righ"< a righ" a of life3liber"&3 !ro!er"&3 or re!%"a"ion hel# "o e0i " for i" own a5e an# "o (on "i"%"e !ar" of "henor-al legal or#er of o(ie"&? 4 "he in"en"ion of "he ;o%n#ing ;a"her being "he a %ran(e ofa((e "o "hi law b& "he !eo!le1

E/i#en(e will be f%r"her !re en"e# "o how how o"her !ar" of "he US 'on "i"%"ion #ealing wi"h"he "o"all& #ifferen" .%ri #i("ion of A#-iral"& an# Mari"i-e Law3 ha/e been % e# "o %b/er" "he

!eo!le in"o3 or %n#er "hi .%ri #i("ion3 an# bar a((e "o "he %b "an"i/e 'o--on Law1

The ba i( ele-en" of "he %b "an"i/e 'o--on Law i &o% >"he in#i/i#%al na"%ral !er on?1 In"hi .%ri #i("ion3 &o% are "he o/ereign an# "he (a!"ain of &o%r own hi!1 The re "ora"ion of "ha"e0al"e# (on(e!"3 an# a((e "o "he law b& whi(h -en ha/e e "abli he# liber"& an# freein "i"%"ion 4 i "he ob.e(" of "hi brief1


7/46

'HRONOLOGI'AL SE UEN'E O; EVENTS AND RELEVANT ;A'TS<

The fa(" "ha" a!!ear rele/an" "o "hi (a e (o/er a e9%en(e of e/en" beginning wi"h "heDe(lara"ion of In#e!en#en(e on $%l& "h )CC 1 We will in"ro#%(e an# #i (% "he e fa(" ine9%en(e of o((%rren(e1 We will how &o%3 b& "he fa(" %rro%n#ing "he e e/en" 3 an# b& "helaw3 how o%r (o%r" ha/e been (on/er"e# "o (o%r" of A#-iral"& "ha" ha/e no .%ri #i("ion "ohear 'o--on Law >Bill of Righ" ? i %e bro%gh" before "he-1 The e e/en" are<

a1 De(lara"ion Of In#e!en#en(e >)CC ? b1 US 'on "i"%"ion >)C+C?(1 $%#i(iar& A(" >)C+*?

#1 George Ra!! Har-on& So(ie"& >)+ ?e1 DeLo/io /1 Boi" >)+) ?f1 Dr1 Li "8 Le""er >)+, ?g1 Swif" /1 T& on >)+ ,?h1 Li-i"e# Liabili"& A(" >)+ )?i1 Ton"ine In %ran(e >)+ +?

.1 ;e#eral Re er/e A(" >)*) ?51 Ho% e $oin" Re ol%"ion )*, >)* ?l1 Erie Railroa# /1 To-!5in >)* +?-1 Vi("or& Ta0 A(" >)* ,?n1 US /1 So%"h4Ea "ern Un#erwri"er A o(ia"ion >)* ?o1 M('arren A(" >)* ?

The fa(" !re en"e# in "hi e9%en(e will how<

)1 Tha" "he De(lara"ion of In#e!en#en(e an# "he US 'on "i"%"ion are or#inan(e wi"hin "he Lawof Na"ion 1

,1 Tha" "he !ri-ar&3 an# (o-!elling rea on for "he De(lara"ion of In#e!en#en(e wa "oeli-ina"e A#-iral"& Law3 an# .%ri #i("ion fro- "he Do-e "i( law of "he (olonie 1

1 Tha" "he $%#i(iar& A(" of )C+* (learl& re(ogni6e# "he #i "in("3 an# e!ara"e .%ri #i("ion ofA#-iral"& an# Do-e "i( law1 'o--on Law

1 Tha" "he for-%la an# bl%e!rin" of "he ;e#eral Re er/e S& "e- i i#en"i(al3 in i" e en"ial

fea"%re 3 "o "ha" of "he George Ra!! Har-on& So(ie"&= an#3 "o "he Ton"ine In %ran(e (he-e>whi(h were !%re wagering !oli(ie an# are !e(ifi(all& forbi##en in "he (on "i"%"ion ofe/eral S"a"e ?1

1 Tha" "he ;e#eral Re er/e i a -ari"i-e len#er an# in %ran(e %n#erwri"er "o "he Uni"e# S"a"e =an#3 a %(h3 ha no ri 5 in "he -ari"i-e /en"%re a a len#er3 or a in %rer3 ha no /e "e#in"ere " in "he %b.e(" -a""er in %re#1

1 Tha" "he %b.e(" -a""er in %re# b& "he ;e#eral Re er/e i "he :%bli( Na"ional 're#i" S& "e-3


8/46

whi(h i a -ari"i-e /en"%re for !rofi" %n#er li-i"e# liabili"& for !a&-en" of #eb"1

C1 Tha"3 for "he !ri/ilege of li-i"e# liabili"& for !a&-en" of #eb"3 an&one who benefi" fro- "hePublic National C e!it >!ro/i#e# b& "he ;e#eral Re er/e? ha an in %rable in"ere " in a-ari"i-e /o&age 4an# i 3 "herefore %b.e(" "o3 an# (an be re9%ire# "o3 -a5e !re-i%-

!a&-en" %n#er "he Law of A#-iral"& an# Mari"i-e >"he in(o-e "a0? " as lon# as thecont act is in $o ce%

+1 That all the esou ces o$ the USA ha&e been h'(othecate!) o (le!#e!) to the *e!e al+ese &e as a secu it' $o the Public National C e!it S'stem%

*1 Tha" "he Ho% e $oin" Re ol%"ion )*,3 !a e# b& 'ongre on $%ne 3 )* 3 -a#e i"i-!o ible for an&one "o !a& a #eb" a" law= an#3 this $act ma,es an'one who bene$its $ omthe Public National C e!it S'stem a sole me chant) %b.e(" "o A#-iral"& $%ri #i("ion in all(on"ro/er ie in/ol/ing ai# (re#i"1

) 1 Tha"3 be(a% e of Ho% e $oin" Re ol%"ion )*,3 we ha/e lo " a((e "o %b "an"i/e 'o--onLaw3 we ha/e lo " o%r allo#ial lan# "i"le 4 an# a foreign .%ri #i("ion of A#-iral"& Law ha

been i-!o e# %!on o%r #o-e "i( law 4 .% " a o((%rre# a bi" o/er , &ear ago1

Na"%rall&3 we (an e0!e(" "he e fa(" "o genera"e -ore 9%e "ion "ha" -% " be an were#1 We will be rai ing o-e 9%e "ion o%r el/e a we !ro(ee#1 A we !ro(ee#3 we will a!!l& "he law "o"he e fa(" an# how<

)1 Tha" "he -ari"i-e /en"%re for !rofi"3 b& wa& of "he :%bli( Na"ional 're#i" S& "e- i ba e#on a fal e an# fra%#%len" !re-i e "ha" "hi /o&age i a lawf%l one1

,1 Tha" "hi /o&age i 3 in fa("3 i in #ire(" /iola"ion of "he :o i"i/e Law of "he Law of Na"ion =an#3 "herefore3 i 3 an# alwa& wa /oi# fro- i" in(e!"ion1

1 Tha"3 be(a% e of "hi fa("3 no agen(& of go/ern-en"3 an# no (o%r" in "hi lan# ha lawf%l .%ri #i("ion "o enfor(e an& (lai- ari ing o%" of3 or in/ol/ing "he :%bli( Na"ional 're#i"

S& "e-11 Tha" "he #e fa("o .%ri #i("ion (%rren"l& being e0er(i e# b& o%r go/ern-en" agen(ie >an# ! %e#o4agen(ie %(h a "he IRS3 'IA3 an# ;BI? an# e !e(iall& ;e#eral Di "ri(" 'o%r" will(on"in%e being e0er(i e# %n"il %((e f%ll& (hallenge# wi"h rele/an" fa(" an# i %e 3 in a(o%r" of !ro!er .%ri #i("ion1

1 ;inall&3 we will how3 b& wa& of "he e fa(" an# law3 .% " wha" we ha/e "o #o "o regaina((e "o o%r %b "an"i/e 'o--on Law 4 an# regain o%r allo#ial lan# "i"le 1

Now3 we are rea#& "o go in"o -ore #e"ail of "he rele/an" fa(" %rro%n#ing "hi e9%en(e ofe/en" <

DE'LARATION O; INDE:ENDEN'E 4 $%l& 3 )CC <A !re/io% l& "a"e#3 -an& rea on i-!elle# "he A-eri(an (oloni " "o e!ara"e "he- el/efro- Grea" Bri"ain3 b%" "he -ore ob/io% rea on were gi/en in "he De(lara"ion i" elf1 Wri""enin "he "&le of a for-al (o-!lain"3 or a("ion a" law3 i" (on"ain a De(lara"ion3 a 'o--on4LawBill of :ar"i(%lar or 'o%n" 3 an# a !ra&er "o "he S%!re-e $%#ge of "he worl#1

The "a"e# !%r!o e of "he #e(lara"ion wa "o a %-e a-ong "he !ower of "he ear"h3 "he e!ara"ean# e9%al "a"ion "o whi(h "he Law of Na"%re an# "he Law of Go# en"i"le "he-3 an# "ha"3 o%"


9/46

of re !e(" for "he o!inion of -an5in#3 "he& ho%l# #e(lare "he (a% e whi(h i-!el "he- "o "hee!ara"ion1 ;or o%r !%r!o e 3 we will 6ero in on "he ) "h 'o%n" where i" i "a"e# "ha"< He@ing George ha (o-bine# wi"h o"her "o %b.e(" % "o a .%ri #i("ion foreign "o o%r(on "i"%"ion3 an# %na(5nowle#ge# b& o%r law = gi/ing a en" "o "heir a(" of !re"en#e#legi la"ion


10/46

:enn &l/anian e/er ob"aine# hi lan# b& o!enl& an# h%-bl& 5neeling before hi lor#3 being%ngir"3 %n(o/ere#3 an# hol#ing %! hi han# bo"h "oge"her be"ween "ho e of "he lor#3 who a"

before hi-3 an# "here !rofe ing "ha" he #i# be(o-e hi -an fro- "ha" #a& for"h3 for life an#li-b3 an# (er"ainl& hono%r3 an# "hen re(ei/ing a 5i fro- hi lor#7 Thi wa "he oa"h of feal"&whi(h wa 3 a((or#ing "o Sir Mar"in Wrigh"3 "he e en"ial fe%#al bon# o ne(e ar& "o "he /er&

no"ion of a fe%#1 2We are "hen "o regar# "he Re/ol%"ion an# "he e A(" of A e-bl& ae-an(i!a"ing e/er& a(re of oil of :enn &l/ania fro- "he gran# (hara("eri "i( of "he fe%#al& "e-1 E/en a "o "he lan# hel# b& "he !ro!rie"arie (i"& of :hila#el!hia "he- el/e 3 "he&hel# "he- a o"her (i"i6en hel#3 %n#er "he 'o--onweal"h3 an# "ha" b& a "i"le !%rel& allo#ial12

U1 S1 'on "i"%"ion 4 )C+C A#-iral"& .%ri #i("ion of 'ongre i #efine# in Ar"i(le I3 Se("ion +<2The 'ongre hall ha/e "he !ower "o (olle(" "a0e 3 #%"ie 3 i-!o " an# e0(i e 3 "o !a& "he#eb" 111of "he Uni"e# S"a"e 1112 To borrow -one& on "he (re#i" of "he Uni"e# S"a"e 1 Toreg%la"e 'o--er(e wi"h foreign na"ion 3 an# a-ong "he e/eral S"a"e 3 an# wi"h "he In#ianTribe 1 To e "abli h an %nifor- R%le of Na"%rali6a"ion3 an# %nifor- law on "he %b.e(" ofBan5r%!"(ie 1 To #efine an# !%ni h !ira(ie an# felonie (o--i""e# on "he high ea 3 an#

offen e again " "he Law of Na"ion 1 To #e(lare War3 gran" le""er of Mar9%e an# Re!ri al3 an#-a5e R%le (on(erning 'a!"%re on Lan# an# Wa"er1 To rai e an# %!!or" ar-ie 111 To !ro/i#e an# -ain"ain a Na/&1 To -a5e r%le for111Lan# an# Na/al for(e 1 To !ro/i#e for(alling for"h "he -ili"ia111 To !ro/i#e for organi6ing3 ar-ing3 an# #i (i!lining "he Mili"ia11144The !ower li "e# here are all wi"hin "he .%ri #i("ion of A#-iral"& an# Mari"i-e Law an#en(o-!a -o " of "he !ower gran"e# "o 'ongre 1

A#-iral"& an# Mari"i-e .%ri #i("ion of "he S%!re-e 'o%r" i #efine# in Ar"i(le III3 Se("ion , <2The .%#i(ial !ower hall e0"en# "o all (a e in Law an# E9%i"&3 ari ing %n#er "hi 'on "i"%"ion3"he law of "he Uni"e# S"a"e 3 "he Trea"ie -a#e3 or whi(h hall be -a#e3 %n#er "heir a%"hori"&="o all (a e affe("ing A-ba a#or 3 o"her !%bli( Mini "er an# 'on %l = "o all (a e of A#-iral"&an# Mari"i-e .%ri #i("ion11121

The f%ll (o!e an# -eaning of Ar"i(le III3 Se("ion ,3 wa a##re e# b& $% "i(e S"or& in "he (a eof De Lo/io /1 Boi" in )+) < 2Wha" i "he "r%e in"er!re"a"ion of "he (la% e44 all (a e ofA#-iral"& an# Mari"i-e .%ri #i("ion72 If we e0a-ine "he e"&-olog&3 or re(ei/e# % e of "hewor# 2A#-iral"&2 an# 2Mari"i-e .%ri #i("ion32 we hall fin#3 "ha" "he& in(l%#e .%ri #i("ion ofall "hing #one %!on an# rela"ing "o "he ea3 or3 in o"her wor# 3 all "ran a("ion an# !ro(ee#ingrela"i/e "o (o--er(e an# na/iga"ion3 an# "o #a-age or in.%rie %!on "he ea1

In all "he grea" -ari"i-e na"ion of E%ro!e3 "he a-e 2A#-iral"& .%ri #i("ion2 i %nifor-l&a!!lie# "o "he (o%r" e0er(i ing .%ri #i("ion o/er -ari"i-e (on"ra(" an# (on(ern 1 We hall fin#"he "er- .% " a fa-iliarl& 5nown a-ong "he .%ri " of S(o"lan#3 ;ran(e3 Hollan# an# S!ain aof Englan#3 an# a!!lie# "o "heir own (o%r" 3 !o e ing %b "an"iall& "he a-e .%ri #i("ion3 a"he Engli h A#-iral"& in "he reign of E#war# "he Thir#1 2The (la% e howe/er of "he (on "i"%"ionno" onl& (onfer A#-iral"& .%ri #i("ion3 b%" "he wor# 2Mari"i-e2 i %!era##e#3 ee-ingl&e0Qin#% "ria "o re-o/e e/er& la"en" #o%b"1 2'a e of Mari"i-e .%ri #i("ion2 -% " in(l%#e all-ari"i-e (on"ra(" 3 "or" an# in.%rie 3 whi(h are in "he %n#er "an#ing of "he 'o--on Law3 awell a of "he A#-iral"&31112


11/46

In Ar"i(le VI3 i" i "a"e#< 2All #eb" (on"ra("e# an# engage-en" en"ere# in"o3 before "hea#o!"ion of "hi 'on "i"%"ion3 hall be /ali# again " "he Uni"e# S"a"e %n#er "hi 'on "i"%"ion3 a%n#er "he 'onfe#era"ion1 Thi 'on "i"%"ion3 an# "he Law of "he Uni"e# S"a"e whi(h hall be-a#e in !%r %an(e "hereof= an# all Trea"ie -a#e3 or whi(h hall be -a#e3 %n#er "he A%"hori"&of "he Uni"e# S"a"e 3 hall be "he %!re-e law of "he lan#= an# "he $%#ge in e/er& S"a"e hall be

bo%n# "hereb&3 an& Thing in "he 'on "i"%"ion or Law of an& S"a"e "o "he 'on"rar&no"wi"h "an#ing12

'learl&3 "he A#-iral"& an# Mari"i-e .%ri #i("ion gran"e# "o "he 'ongre an# "he $%#i(iar& i/er& broa# an# e0"en i/e1 So3 wha" !ro/i ion were -a#e in "he 'on "i"%"ion "o !re/en" "heen(roa(h-en" of "hi A#-iral"& .%ri #i("ion in"o o%r Do-e "i( law 44 "he %b "an"i/e 'o--onLaw 44!%r %an" "o "he De(lara"ion of In#e!en#en(e7 The an wer i in Ar"i(le I3 Se("ion +3 an#Ar"i(le I3 Se("ion ) 3 'la% e ) 44 b%"3 fir "3 a li""le ba(5gro%n# -a& be hel!f%l< Beginning along ago a ) * 3 "he (olonie ha# !erio#i(all& e0!eri-en"e# wi"h (re#i" an# %nba(5e# !a!er aa for- of !%bli( -one&1

The re %l" were alwa& "he a-e 44gol# an# il/er (oin #i a!!eare# fro- (ir(%la"ion3(o--er(e "agna"e#3 %ne-!lo&-en" grew b& lea! an# bo%n# 3 e"(1 The war for in#e!en#en(ee0hibi"e# a new #e/elo!-en" in "he & "e- of (re#i"3 b& "he re(5le #i regar# of i" bo%n# 1 In"he wor# of $ohn A#a- 3 2!ro-i e of -one& were (a""ere# o/er "he lan# ali5e b& "he S"a"ean# b& "he Uni"e# S"a"e 3 %n"il bill be(a-e a !len"& a oa5 lea/e 12 The re %l" were re(or#e#

b& :ele"iah Web "er a follow < 2:a!er -one& !oll%"e# "he e9%i"& of o%r law 3 "%rne# "he-in"o engine of o!!re ion3 (orr%!"e# "he .% "i(e of o%r !%bli( a#-ini "ra"ion3 #e "ro&e# "hefor"%ne of "ho% an# who ha# (onfi#en(e in i"3 ener/a"e# "he "ra#e3 h% ban#r&3 an#-an%fa("%re of o%r (o%n"r&3 an# wen" far "o #e "ro& "he -orali"& of o%r !eo!le12

%e "ion< Wha" ha# ha!!ene# "o "he #o-e "i(3 %b "an"i/e3 'o--on Law fo%gh" for in "he War;or In#e!en#en(e 44 "he Law "ha" e "abli he an# !re er/e free in "i"%"ion 7

Ten &ear af"er "he De(lara"ion of In#e!en#en(e3 hor"l& before "he 'on "i"%"ional (on/en"ion3Wa hing"on wro"e "o Ma#i on< 2The wheel of go/ern-en" are (logge#3 an# we are #e (en#ingin"o "he /ale of (onf% ion an# #ar5ne 1 No #a& wa e/er -ore (lo%#e# "han "he !re en"12

An# on ;ebr%ar& 3 )C+C3 Wa hing"on wro"e "o Henr& @no0< 2If an& !er on ha# "ol# -e "ha""here wo%l# ha/e been %(h a for-i#able rebellion a e0i " 3 I wo%l# ha/e "ho%gh" hi- fi" for a-a#ho% e12

The 'on "i"%"ional 'on/en"ion wa (on/ene# in :hila#el!hia3 Ma& ) 3 )C+C an# GeorgeWa hing"on wa ele("e# :re i#en"1 Ran#ol!h3 Go/ernor of Virginia3 #rew a""en"ion "o !a!er-one& in hi o!ening !ee(h b& re-in#ing hi hearer "ha" "he !a"rio"i( a%"hor of "he(onfe#era"ion #i# "heir wor5 2In "he infan(& of "he (ien(e of (on "i"%"ion an# of (onfe#era(ie 3when "he ha/o( of !a!er -one& ha# no" been fore een12 The eigh"h (la% e of "he e/en"h ar"i(le3in "he fir " #raf" of "he 'on "i"%"ion3 wa a follow < 2The legi la"%re of "he Uni"e# S"a"e hallha/e "he !ower "o borrow -one& an# e-i" bill on "he (re#i" of "he Uni"e# S"a"e 12 B& ref% ing"he !ower of i %ing bill of (re#i"3 "he #oor wa h%"3 b%" no" barre#3 on !a!er -one& b&(on "i"%"ional law1 Al"ho%gh 'ongre wa no" a%"hori6e# "o i %e no"e of "he Uni"e# S"a"e 3


12/46

"he borrowing (la% e "ho%gh" ab ol%"el& ne(e ar& for e-ergen(ie lef" a -ean of borrowingno"e of ano"her en"i"& in"o (ir(%la"ion1 e1g13 a !ri/a"e ban5 1

One "he ,+"h of A%g% "3 "he (on/en"ion "oo5 "e! "o re-e#& "ha" i"%a"ion an#3 "hereb&3g%aran"ee a %b "an(e for o%r #o-e "i( 'o--on Law "o f%n("ion on -a""er in/ol/ing -one&1

The fir " #raf" of "he (on "i"%"ion ha# forbi##en "he "a"e "o e-i" bill of (re#i" wi"ho%" "he(on en" of 'ongre 1

In (on/en"ion on "he ,+"h3 Mr1 Wil on an# Mr1 Sher-an -o/e# "o in er" af"er "he wor# 2(oin-one&2 "he wor# 2nor e-i" bill of (re#i"32 nor -a5e an&"hing b%" gol# an# il/er (oin a "en#erin !a&-en" of #eb" 3 an# in "heir wor# 3 2-a5ing "he e !rohibi"ion ab ol%"e12 Mr1 Sher-anwen" on "o a& "ha" he 2"ho%gh" "hi a fa/orable (ri e for (r% hing !a!er -one&1 If "he (on en"of "he legi la"%re (o%l# a%"hori6e e-i ion of i"3 "he frien# of !a!er -one&3 wo%l# -a5e e/er&e0er"ion "o ge" in"o "he legi la"%re in or#er "o li(en e i"12 Af"er #i (% ion3 Mr1 Wil on8 an# Mr1Sher-an8 -o"ion wa %nani-o% l& agree# "o b& "he (on/en"ion1 The re %l" of "hi a("iona!!ear in Ar"i(le I3 Se("ion ) 3 'la% e )1 I" -o " alien" fea"%re i 2No S"a"e hall -a5e an&

"hing b%" gol# an# il/er (oin a "en#er in !a&-en" of #eb" 12Af"er "he (on "i"%"ional (on/en"ion3 i" "oo5 nearl& a &ear for "he "a"e "o ra"if& "he 'on "i"%"ion44 !ri-aril& be(a% e "he& in i "e# on (er"ain %b "an"i/e 'o--on Law righ" an# !rin(i!le

being !e(ifie# in "he 'on "i"%"ion1 The e righ" an# !rin(i!le a!!ear a "he fir " )A-en#-en" 3 (alle# "he Bill of Righ" 1 'o--on Law3 o!era"ing on -one& of %b "an(e3

bro%gh" 9%i(5 relief a #o(%-en"e# b& George Wa hing"on< In a le""er3 #a"e# $%ne ) 3 )C* 3 hewro"e "o Mar9%i #e La;a&e""e<

2Yo% ha/e #o%b"le been infor-e#3 fro- "i-e "o "i-e3 of "he ha!!& !rogre of o%r affair 1The !rin(i!le #iffi(%l"ie ee- in a grea" -ea %re "o ha/e been %r-o%n"e#12 In a le""er3 #a"e#Mar(h )*3 )C*)3 he again wro"e "o La;a&e""e< 2O%r (o%n"r&3 -& #ear ir3 i fa " !rogre ing ini" !oli"i(al i-!or"an(e an# o(ial ha!!ine 12 On $%l& )*3 )C*)3 he wro"e "o 'a"herineM('a%le&< 2The Uni"e# S"a"e en.o& a en e of !ro !eri"& an# "ran9%ili"& %n#er "he newgo/ern-en" "ha" (o%l# har#l& ha/e been ho!e# for12

An# on $%l& , 3 )C*)3 he wro"e "o Da/i# H%-!hre&3 2Tran9%ili"& reign a-ong "he !eo!le wi"h"he #i !o i"ion "owar# "he general go/ern-en"3 whi(h i li5el& "o !re er/e i"1 O%r !%bli( (re#i""an# on "ha" high gro%n# whi(h "hree &ear ago i" wo%l# ha/e been (on i#ere# a a !e(ie of-a#ne "o ha/e fore"ol#1

$UDI'IARY A'T )C+* <

On Se!"e-ber , 3 )C+*3 'ongre !a e# "he $%#i(iar& A("1 Se("ion * of "hi A(" #eal" wi"he9%i"&3 a#-iral"& an# -ari"i-e .%ri #i("ion of o%r (o%r" 1 'ongre ai# "ha" 2"he for- an#-o#e of !ro(ee#ing in (a% e of e9%i"& an# of a#-iral"& an# -ari"i-e .%ri #i("ion hall bea((or#ing "o "he (o%r e of 'i/il Law12

Se("ion #eal" e0(l% i/el& wi"h "he 'o--on Law .%ri #i("ion of "he ;e#eral (o%r" wherein'ongre ai#< 2Tha" "he law of "he e/eral S"a"e 3 e0(e!" where "he 'on "i"%"ion3 "rea"ie or


13/46

"a"%"e of "he Uni"e# S"a"e hall o"herwi e re9%ire or !ro/i#e3 hall be regar#e# a r%le of#e(i ion in "rial a" 'o--on Law in "he (o%r" of "he Uni"e# S"a"e in (a e where "he& a!!l&12

B& (ongre ional a("ion in )C*,3 "he for- an# -o#e of !ro(ee#ing in %(h (a e were #ire("e#"o be 2a((or#ing "o "he !rin(i!le 3 r%le an# % age 3 whi(h belong "o (o%r" of e9%i"& an# "o

(o%r" of A#-iral"& re !e("i/el&3 a (on"ra#i "ing%i he# fro- (o%r" of 'o--on Law12

Th% 3 in )C*,3 'ongre re(ogni6e# "hree e!ara"e an# #i "in(" .%ri #i("ion of "he fe#eral(o%r" = E9%i"&3 A#-iral"& an# 'o--on Law1 B& 2.%ri #i("ion2 we -ean lawf%l a%"hori"& "oa(" on "he %b.e(" -a""er in/ol/e# in a (on"ro/er &3 a !ar"i(%lar "hing wi"hin "ha" %b.e(" -a""er3an# a%"hori"& "o a(" again " a !ar"i(%lar !er on a o(ia"e# wi"h "he %b.e(" -a""er1

THERE ARE ONLY THREE $URISDI'TIONS 44 AND NO MOREJ

All "hree of "he e .%ri #i("ion ha/e (ogni6an(e o/er (i/il -a""er 3 a (on"ra#i "ing%i he# fro-(ri-inal -a""er 3 #e!en#ing on "he %b.e(" -a""er in (on"ro/er & an# na"%re of "he (a% e1

If i" i an a("ion a" 'o--on Law !ro!erl& bro%gh" in"o a (o--on law (o%r"3 "he (o%r" i bo%n# b& "he !rin(i!le 3 r%le an# !ro(e#%re of 'o--on Law1 If "he a("ion i !ro!erl& bro%gh" before an E9%i"& or A#-iral"& (o%r"3 "he (o%r" i bo%n# b& "he !rin(i!le 3 r%le an# !ro(e#%reof "he (i/il law #ealing wi"h "he %b.e(" -a""er1

E9%i"& ha no (ogni6an(e o/er (ri-inal -a""er an#3 "herefore3 in (ri-inal (a e "here are onl&"wo .%ri #i("ion 44 e/er& (ri-inal (a e -% " be !ro e(%"e# ei"her in "he .%ri #i("ion of 'o--onLaw3 or "ha" of "he Law of A#-iral"&1 In (ri-inal (a e 3 'o--on Law (o%r" are bo%n# b&"he !rin(i!le 3 r%le an# !ro(e#%re of "he 'o--on Law1 In A#-iral"& (a e 3 "he (o%r" i

bo%n# b& "he !rin(i!le 3 r%le an# !ro(e#%re of A#-iral"& an# Mari"i-e Law1

Yo% will ee3 %b e9%en"l&3 "ha" "a"e (o%r" ha/e (on(%rren" .%ri #i("ion in bo"h 'o--on Lawan# Mari"i-e law (on(erning (er"ain "&!e of (a e an# %b.e(" -a""er1 Yo% al o will ee "ha"in "he e (a e 3 if "he %b.e(" -a""er or na"%re of "hi (a% e i Mari"i-e "ha"3 e/en if i" i hear# ina 'o--on Law (o%r"3 "ha" (o%r" i bo%n# "o a!!l& "he Mari"i-e Law "o "he (a e1 We al o willhow "ha" no A#-iral"& (o%r" in "he lan# ha an& .%ri #i("ion "o hear 'o--on Law i %e 1

QQQQQQQ'OMMONQLAWQQQQQQQQ QQQQQQQ'IVILQLAWQQQQQQQQQQQQP Righ" To Trial B& $%r& P No Righ" "o Trial B& $%r&P ), $%#ge $%r& P ) 2$%#ge2 'han(ellorP ), $%#ge >The $%r&? P ) 'han(ellor 'on"rol TrialP 'on"rol "he "rial

V V $%#ge $% "i(e of Law $%r& i A#/i or& "o 'han(ellorTrial De"er-ine A#-i ibili"& 'han(ellor De"er-ine

of E/i#en(e A#-i ibili"& of E/i#en(e A!!lie Law "o ;a(" $%r& Sworn "o Ta5e "he Law Ren#er Ver#i(" A((or#ing a "he 'han(ellor gi/e i"To 'on (ien(e "o Law $%r& Ren#er Ver#i(" A((or#ing "o


14/46

E/i#en(e :re en"e#

The S%!re-e 'o%r" anal&6e# "he e "wo e("ion of "he .%#i(iar& a(" in "he H%n"re (a e in)+ < The H%n"re (a e wa a libel in !er ona- again " "he owner of "he "ea- hi! H%n"re 1

The 'o%r" ai#< 2In "he e3 an# in analogo% (a e 3 "he onl& 9%e "ion "ha" (an be (on i#ere# a ano!en one i 3 whe"her "he& (o-e wi"hin "ha" (la% e of "he 'on "i"%"ion "ha" a& 3 "he .%#i(ial !ower of "he Uni"e# S"a"e hall e0"en# "o 2all (a% e of A#-iral"& an# Mari"i-e .%ri #i("ion12If "he& #o3 "hen "he original (ogni6an(e of "he- i b& "he nin"h e("ion of "he $%#i(iar& A("3gi/en "o "he #i "ri(" (o%r"2 1111 2The arg%-en"3 "ha" "hi (la% e i (on"rolle# b& "he Se/en"hA-en#-en"3 whi(h e(%re "he righ" of "rial b& .%r& in all %i" a" 'o--on Law3 where "he/al%e in (on"ro/er & e0(ee# "wen"& #ollar 3 ha no a!!li(a"ion "o "he (on "i"%"ional gran"=

be(a% e "he e are no" %i" a" 'o--on Law2=

An#3 in "he DeLo/io / 1 Boi" (a e3 $% "i(e S"or& ai#< 2An#3 "he gro%n# i -a#e "ronger b& "he(on i#era"ion3 "ha" "he righ" of "rial b& .%r& i !re er/e# b& "he (on "i"%"ion in all %i" a"

(o--on law3 where "he /al%e in (on"ro/er & e0(ee# "wen"& #ollar = an# b& "he "a"%"e3 "hirigh" i e0(l%#e# in all (a e of A#-iral"& an# Mari"i-e .%ri #i("ion12 Here we ha/e a (lear"a"e-en"3 b& "he S%!re-e 'o%r" "ha" "here i no a((e "o 'o--on Law in (o%r" of A#-iral"&1

In )+ ,3 "he S%!re-e 'o%r" of "he S"a"e of :enn &l/ania /er& abl& a##re e# "he -eaning an#in"en" of "he C"h a-en#-en" in "he (a e of Bain /1 The S(hooner $a-e an# 'a"herine3 afollow < 2111b& a""e-!"ing "o in"ro#%(e "he a#-iral"& .%ri #i("ion of "he (i/il law3 111 afo%n#a"ion i lai# for in"er-inable (onfli(" of .%ri #i("ion be"ween "he (o%r" of "he S"a"e an#"he Union12 2I" i /ain "o (on"en# "ha" "he Se/en"h A-en#-en" will be an& effi(ien" g%aran"eefor "he righ"3 in %i" a" 'o--on law3 if an A#-iral"& .%ri #i("ion e0i " in "he Uni"e# S"a"e 3(o--en %ra"e wi"h wha" i (lai-e# b& "he (lai-an" in "hi (a e1 I" a er"ion i 3 in -& o!inion3a renewal of "he (on"e " be"ween legi la"i/e !ower an# ro&al !reroga"i/e3 "he 'o--on an# "he'i/il Law3 "ri/ing for -a "er&= "he one "o e(%re3 "he o"her "o "a5e awa& "he "rial b& .%r&3 111

.%#i(ial !ower -% " fir " ann%l "he Se/en"h A-en#-en"3 or .%#i(ial subtl' t ans$o m a %i" a"'o--on Law3 in"o a (a e of A#-iral"& an# Mari"i-e .%ri #i("ion3 before I "a5e (ogni6an(e a%(h a (a e a "hi wi"ho%" a .%r&12

Th% 3 A#-iral"& i 'i/il Law3 an#3 on(e again3 'o--on Law i no" a((e ible in (o%r" ofA#-iral"& 44 an#3 a $1 Re%ben 'lar5 ai#< "here i a (on "an" i#eologi(al (onfli(" be"ween 'i/ilan# 'o--on Law for "he (on"rol of o(ie"&1

In "he !refa(e "o hi boo5 2Hone " Mone&23 Dr1 Norb%rn wro"e< 2Wha" a -ar/ello% (o%n"r&wa "hi new worl# 44 AMERI'A1 I" (oa "line3 #o""e# wi"h #ee! harbor 3 ee-e# en#le 1 I"ha# grea" -o%n"ain an# grea" ri/er 1 There were -agnifi(en" fore " an# /a " fer"ile !lain 1 I"ear"h wa ri(h wi"h -ineral 1 Tho e who (a-e "o li/e in "hi /eri"able !ara#i e were of "%r#&"o(51 The& were in#% "rio% 3 a/ing an# ingenio% 1 The& ha# "he be " go/ern-en" e/er#e/i e#1 How #oe i" ha!!en "ha" now3 af"er -ore "han "hree h%n#re# &ear of in"en e "oil3 "heinhabi"an" of "hi na"ion fin# "he- el/e -ore "han "en "rillion #ollar in #eb"7 The& ha/ere(ei/e# no benefi" "o .% "if& "hi #eb"1 To who- #o "he& owe i"7 How were "he (lai-a(9%ire#7


15/46

A &o% will ee3 "he fa("%al an wer "o Dr1 Narb%rn8 9%e "ion 3 an# !ro!er a!!li(a"ion of "hea!!ro!ria"e law "o "he e fa(" 3 !ro/i#e % "he ne(e ar& fa(" an# law "o b%il# a winning (a e "ha"(an re "ore o%r a((e "o 'o--on Law= an# (an re "ore o%r allo#ial lan# "i"le 1

INTRODU'TION O; THE GEORGE RA:: SO'IETY<

P ;ir " S%((e f%l (o--%ni "i(3 religio% 3 organi6a"ion in "he Uni"e# S"a"e 1P The o(ie"& wa #e igne# for !rofi" -a5ing for o-e an# i" for-%la in(l%#e# a (on"rolle#e(ono-& %n#er li-i"e# liabili"&3 whi(h3 a &o% will ee before "hi !re en"a"ion i o/er3 i "hea-e ingre#ien" of "he ;e#eral Re er/e for-%la "ha" i r%nning "hi (o%n"r& "o#a&J Thi i "hefor-%la "ha" bro%gh" a#-iral"& inlan# an# ha barre# o%r a((e "o %b "an"i/e 'o--on Law1

George Ra!! Har-on& So(ie"& 4 )+ Re< S(hriber /1 Ra!!3 :a1 S%!re-e 'o%r"3 )P George Ra!! fo%n#e# "he 2Har-on& So(ie"&2 in )+ 3 a" Har-on&3 in Bea/er 'o%n"&3 :a13%b e9%en"l& -o/e# "o Har-on& on "he Waba h3 in "he "a"e of In#iana3 an# "hen -o/e# "o

2E(ono-&2 in Bea/er 'o%n"&3 :a1 The na"%re of "hi o(ie"& wa bro%gh" "o ligh" in "he (a e ofS(hriber /1 Ra!! in )+ 1 Thi (a e wa an a("ion of a((o%n" bro%gh" b& $a(ob S(hriber3a#-ini "ra"or of :e"er S(hriber3 #e(ea e#3 again " George Ra!! an# o"her 3 #oing b% ine in(o-!an& %n#er "he na-e of Har-on& So(ie"&1 To % "ain "he a("ion3 "he !lain"iff !ro/e# b&"e "i-on& "ha" "he Har-on& So(ie"& !o e e# a grea" #eal of weal"h in "he for- of !er onal

!ro!er"&3 real !ro!er"&3 fa("orie 3 e"(1 I" wa a !ool of !ro!er"&1

Wi"ne 3 Dr1 S-i"h3 on(e a -e-ber of "he a o(ia"ion "a"e#< 2The& in"en#e# "o -a5e -one&when "he& en"ere# in"o i"= i" wa a !ar" of "heir ob.e("1 I belie/e "here were Ar"i(le a" Har-on&3

b%" e/er&one wa no" oblige# "o ign i"1 E9%al righ" 3 e9%al en.o&-en" an# e9%al !rofi" 1 4Ra!! ai# i" ho%l# no" be in(or!ora"e#3 for "ha" wo%l# "a5e "oo -%(h !ower fro- hi-1 Ra!!wa no" ele("e#1 He a %-e# "he !ower "ha" Mo e an# Aaron ha#1 If an&one wo%l# no" #owha" he ai#3 he wo%l# a&3 Wha" ha/e &o% "o #o abo%" i"7 I ha/e "he !ower 44 I (o%l# (r% h&o%1 All &o% ha/e "o #o i obe&18 He go" wor e a he go" weal"h&12

George Ra!! wa a !rea(her 44 an# a /er& !er %a i/e one1 A#a- Shell& "e "ifie# on behalf of"he !lain"iff re !e("ing "he fir " ar"i(le of a o(ia"ion on "he Waba h1 2The !eo!le were#ire("e# "o (o-e in (o-!anie 3 one of "he- rea# i" an# "he re " igne# i"1 A "o "he ar"i(leigne# a" E(ono-&3 Ra!! -a#e a long !ee(h1 Sai# an& one who wo%l# ign i" wo%l# ha/e hina-e wri""en in "he La-b8 Boo5 of Life1 If "he& #i# no"3 "heir na-e wo%l# be blo""e# o%"3 an#go# wo%l# a 5 hi- abo%" i"12

Defen#an" 3 "o % "ain "he i %e on "heir !ar"3 !ro#%(e# in e/i#en(e "he ar"i(le of a o(ia"ion1So-e !er"inen" e0(er!" are a follow < Ar"i(le )< We "he %n#er igne#3 for o%r el/e an# o%rheir 3 e0e(%"or an# a#-ini "ra"or 3 #o hereb& gi/e3 gran" an# fore/er (on/e&3 "o "he ai#George Ra!! an# hi a o(ia"e 3 an# "heir heir 3 an# a ign 3 all o%r !ro!er"&111for "he benefi" ofai# a o(ia"ion or (o--%ni"&1 Ar"i(le ,< We #o f%r"her (o/enan" an# agree "o an# wi"h "heai# George Ra!! an# hi a o(ia"e 3 "ha" we will e/erall& %b-i" fai"hf%ll& "o "he law an#reg%la"ion of ai# (o--%ni"&3 111"herefore hol#ing o%r el/e bo%n# "o !ro-o"e "he in"ere " an#welfare of "he ai# (o--%ni"&3 no" onl& b& "he labor of o%r own han# 3 b%" al o b& "ha" of o%r


16/46

(hil#ren3 o%r fa-ilie an# all o"her who now are or hereaf"er -a& be %n#er o%r (on"rol1 Ar"i(le< 111"ha" we will ne/er (lai- or #e-an# ei"her for o%r el/e 3 o%r (hil#ren3 or for an&one

belonging "o % 3 #ire("l& or in#ire("l&3 an& (o-!en a"ion3 wage or rewar# wha"e/er3 for o%r3 or"heir labor or er/i(e 3 ren#ere# "o "he ai# (o--%ni"&3 111 Ar"i(le < The ai# George Ra!! an#hi a o(ia"e f%r"her agree "o %!!l& "he %n#er igne# e/erall& wi"h all "he ne(e arie of

life 111an# "o %(h e0"en" a "heir (ir(%- "an(e -a& re9%ire1 Ar"i(le < If an& of "he%n#er igne#111shoul! with! aw $ om the association) then the sai! Geo #e +a(( an! hisassociates a# ee to e$un! to him o them the &alue o$ all such ( o(e t' without inte est)as he o the' ma' ha&e b ou#ht into the communit' 111 Sai# /al%e "o be ref%n#e#111a "he ai#George Ra!! an# hi a o(ia"e hall #e"er-ine1

The (o%r" r%le# for #efen#an" George Ra!! on "he ba i "ha" 2an a o(ia"ion for "he !%r!o ee0!re e# i !rohibi"e# nei"her b& "a"%"e nor "he (o--on law12 An# "he (o%r" al o "a"e#<

2I" i %!!o e#3 howe/er3 "ha" a "he in"e "a"e ha# !ower3 b& "he ar"i(le 3 "o e(e#e fro- "heo(ie"& an# "a5e o%" wha"e/er he bro%gh" in"o i"3 "he %((e or "o hi !er onal righ" -a&

e0er(i e i" a hi re!re en"a"i/e1 S%(h3 howe/er3 are no" "he "er- of "he ar"i(le 111 The righ"of a((e ion3 "herefore3 i in"ran -i able12 The (o%r" al o "a"e# "ha" 2"he law 5now no #%re b& a#/i e an# !er %a ion23 an#3 "herefore "here wa no fra%# in "he in#%(e-en" "o ign "hear"i(le1

In anal&6ing "hi (a e3 we ee "ha"<)1 The (o-!lain" wa bro%gh" %n#er "he .%ri #i("ion of (o--on law1,1 The !lain"iff lo " be(a% e of "he (o--on law an# (on "i"%"ionall& !ro"e("e# righ" "o

(on"ra("11 Un#er "he (o--on law3 "he onl& wa& "o brea5 "he (on"ra(" wa "o !ro/e fra%#11 A((or#ing "o "e "i-on&3 "he -e-ber of "he a o(ia"ion 2in"en#e# "o -a5e -one&

when "he& en"ere# in"o i"12

The wi"ne e #i# no" e0!lain how "he& e0!e("e# "o 2-a5e -one&2 %n#er "he "er- of "he(on"ra("1 The onl& rea onable e0!lana"ion i "ha" "he& were ga-bling "ha" "he& wo%l# be la "%r/i/or in "he A o(ia"ion 44 an# hare in "he #i "rib%"ion of a e" = an#Kor "he& e0!e("e# "o

benefi" fro- li-i"e# liabili"& b& haring an& lo e of "he a o(ia"ion wi"h "he o"her -e-ber 1La " %r/i/or "a5e all i a wagering !oli(&3 an# -%"%al haring of lo e i in %ran(e1

In anal&6ing "he George Ra!! A o(ia"ion for-%la3 we ee<)1 The (on"ra(" (on"aine# a forfei"%re (la% e1 Me-ber wo%l# 2ne/er (lai- (o-!en a"ion=2%!on wi"h#rawal3 /al%e of !ro!er"& wo%l# be ref%n#e# 2wi"ho%" in"ere "2 44 The righ" ofa((e ion of !ro!er"& #ona"e# "o "he A o(ia"ion i in"ran -i able "o heir of "he #e(e#en"1,1 Ra!! an# hi a o(ia"e ha# no ri 5 a "he in %rer1 The& no" onl& ha# no"hing "o lo e in "hee/en" of #ea"h of a (on"rib%"or an# -e-ber 44 b%" gaine# all !ro!er"& #ona"e# wi"h no !o ible(lai- fro- heir of "he #e(e#en"11 I" wa a (on"rolle# e(ono-& 44 %n#er "he e0(l% i/e (on"rol of George Ra!! an# hia o(ia"e 11 There wa no a((o%n"abili"& "o -e-ber of "he A o(ia"ion111


17/46

Yo% will ee3 la"er on3 "ha" if S(hriber ha# "a5en "he e fa(" in"o an A#-iral"& (o%r" an# a!!lie#"he !ro!er A#-iral"& Law "o "he e fa(" 44 he ho%l# ha/e won hi (a e1

One a##i"ional no"e on George Ra!!3 George Ra!! (on"in%e# "o gain affl%en(e an# !re "ige 44an# #igni"arie (a-e fro- all o/er "he worl# "o hi -an ion a" 2e(ono-&2 "o -ar/el a" "he

fan"a "i( %((e of hi o(ie"&1

Wh& ho%l#n8" he be %((e f%l7 B& (on"ra("3 he ha# la/e labor3 #ona"ion of %n"ol# weal"hfro- -e-ber who3 if "he& (ho e "o wi"h#raw before "he& #ie#3 (o%l# onl& ge" ba(5 "hee9%i/alen" of wha" "he& ha# #ona"e# wi"ho%" in"ere "= an#3 if "he& #ie# a a -e-ber3 "he

!ro!er"& an# a e" #ona"e# re-aine# in "he o(ie"& a long a i" e0i "e#1

George Ra!! #ie# in )+ C= howe/er3 "he o(ie"& wen" on1 E/i#en(e will how "ha" "he"re-en#o% weal"h a((%-%la"e# b& "hi o(ie"& wa %b e9%en"l& % e# "o fa hion a GeorgeRa!! So(ie"& on a -%(h larger (ale 4 wi"h !lan "o %l"i-a"el& en(o-!a "he worl# in a2 %!er "a"e2 (on"rolle# an# go/erne# b& -er(an"ile in"ere " 3 %n#er "he law of a#-iral"& 44 a

%!er "a"e wherein all "he !ro!er"& in "he worl#3 an# all "he !eo!le on !a(e4 hi! 2ear"h23 are !le#ge# "o "he benefi" of "hi worl#4wi#e -er(an"ile a o(ia"ion1 The 2New Worl# Or#er7

DeLOVIO VS1 BOIT >)+) ?< In )+) 3 in "he (a e of DeLo/io /1 Boi"3 "he S%!re-e 'o%r"r%le# "he following< >O!inion wri""en b& $% "i(e S"or&? 2The A#-iral"&3 fro- "he highe "an"i9%i"&3 ha e0er(i e# a /er& e0"en i/e (ri-inal .%ri #i("ion3 an# !%ni he# offen e b& finean# i-!ri on-en"1 The (elebra"e# in9%i i"ion a" %een boro%gh3 in "he reign of E#war# lll3wo%l# alone be #e(i i/e1 An#3 e/en a" 'o--on Law i" ha# been a#.%#ge#3 "ha" "he a#-iral"&-igh" fine for (on"e-!"111 A!!eal3 an# no" a Wri" of Error3 lie for i" #e(ree 11 Ye"3 i" i(on(e#e# on all i#e 3 "ha" of -ari"i-e h&!o"he(a"ion 3 "he A#-iral"& ha .%ri #i("ion1111 The

.%ri #i("ion of "he A#-iral"& #e!en# 3 or o%gh" "o #e!en#3 a "o (on"ra(" %!on "he %b.e("-a""er3 i1e1 whe"her -ari"i-e or no"= an# a "o "or" 3 %!on lo(ali"&111 Nei"her "he $%#i(ial A("nor "he 'on "i"%"ion3 whi(h i" follow 3 li-i" "he A#-iral"& $%ri #i("ion of "he Di "ri(" 'o%r" inan& re !e(" "o !la(e1 I" i bo%n#e# onl& b& "he na"%re of "he (a% e o/er whi(h i" i "o #e(i#e1

On "he whole3 I a-3 wi"ho%" "he ligh"e " he i"a"ion3 rea#& "o !rono%n(e3 "ha" "he #elega"ion of(ogni6an(e of all (i/il (a e of A#-iral"& an# Mari"i-e .%ri #i("ion8 "o "he 'o%r" of "he Uni"e#S"a"e (o-!rehen# all -ari"i-e (on"ra(" 3 "or" 3 an# in.%rie 1 The la""er bran(h i ne(e aril&

bo%n#e# b& lo(ali"&= "he for-er e0"en# o/er all (on"ra(" 3 where oe/er "he& -a& be -a#e ore0e(%"e#3 or wha" oe/er -a& be "he for- of "he "i!%la"ion whi(h rela"e "o "he na/iga"ion3

b% ine or (o--er(e of "he ea1 The ne0" in9%ir& i 3 wha" are !ro!erl& "o be #ee-e# 2-ari"i-e(on"ra(" 12 Ha!!il&3 in "hi !ar"i(%lar "here i li""le roo- for (on"ro/er &1 All (i/ilian an#

.%ri " agree3 "ha" in "hi a!!ella"ion are in(l%#e#3 a-ong o"her "hing 3 -arineh&!o"he(a"ion 111an#3 wha" i -ore -a"erial "o o%r !re en" !%r!o e3 !oli(ie of in %ran(e111 M&

.%#ge-en" a((or#ingl& i 3 "ha" !oli(ie of in %ran(e are wi"hin "ho%gh no" e0(l% i/el& wi"hin"he A#-iral"& an# Mari"i-e .%ri #i("ion of "he Uni"e# S"a"e 12

INTRODU'ING :RO;ESSOR ;REDERI'H LIST<

We will now a##re "he %b.e(" of Dr1 Li "8 le""er 1 The le""er of Dr1 Li "3 an# "he e(ono-i(


18/46

"heorie he e !o% e# in "ho e le""er 3 will be(o-e /er& ignifi(an" "o &o% when &o% ee "ha" hie(ono-i( "heorie are being a!!lie# again " &o% "o#a& b& "he ;e#eral Re er/e 44 an# are3"hereb&3 (on"rolling e/er& a !e(" of &o%r life1

:rofe or Li " re!re en"e# "he o(ie"& of Ger-an -er(han" an# -an%fa("%rer for "he !%r!o e

of ob"aining a Ger-an & "e- of na"ional e(ono-&1 Hi !lan of refor- !ro/ing obno0io% "o"he go/ern-en"3 he wa a((% e# of high "rea on an# "hrown in !ri on3 an# wa %b e9%en"l&e0ile# fro- Ger-an1 He e""le# in :enn &l/ania an# "%#ie# an# le("%re# on "he #o("rine of

!oli"i(al e(ono-&1 D%ring hi a""en"ion "o "ha" %b.e("3 he /ol%n"aril& a##re e# a erie ofle""er whi(h were !%bli he# in "he Na"ional Ga6e""e1 :rofe or Li " wa al o a -e-ber of "heGeorge Ra!! Har-on& So(ie"&1 In hi fir " le""er he "ell % wha" he -ean b& "he "er-2Na"ional E(ono-&12 :1S1 The a%"hor8 nega"i/e o!inion of Li "8 e(ono-i( i no" hare# b& L1LaRo%(he3 e(ono-i " an# an a#/o(a"e of "he original A-eri(an S& "e-1

2Na"ional E(ono-&2 "ea(he b& wha" -ean a (er"ain na"ion3 in her !ar"i(%lar i"%a"ion3 -a&#ire(" an# reg%la"e "he e(ono-& of in#i/i#%al 3 an# re "ri(" "he e(ono-& of -an5in#3 ei"her "o

!re/en" foreign re "ri("ion an# foreign !ower wi"hin her elf3111wi"ho%" re "ri("ing "he e(ono-&of in#i/i#%al an# "he e(ono-& of -an5in# -ore "han "he welfare of "he !eo!le !er-i" 12

I" i (o--on 5nowle#ge "ha" we ha/e a 2Na"ional E(ono-&2 "o#a& "ha" #ire(" an# reg%la"e"he e(ono-& of in#i/i#%al 3 an# "ha" of -an5in# 44 an# "ha" "hi e(ono-& i (on"rolle# an#reg%la"e# b& "he ;e#eral Re er/e S& "e-1

Swif" /1 T& on3 ) :e"er ) )+ , In )+ ,3 in "he (a e of Swif" /1 T& on3 "he S%!re-e 'o%r"hel# "ha" "here wa a general fe#eral (o--on law i1e13 a" "ha" "i-e3 a((e "o %b "an"i/e(o--on law e0i "e# a" "he fe#eral le/el 1

Li-i"e# Liabili"& A(" 4 )+ )

On Mar(h 3 )+ )3 "he 'ongre of "he Uni"e# S"a"e ena("e# "he Li-i"e# Liabili"& A("3(o#ifie# a" US' )+)4)+* 3 a a-en#e# in )+C 3 )+CC3 )* 3 )* 3 an# "he A(" of )++(o/er "he en"ire %b.e(" of li-i"a"ion 1 The :%r!o e of "hi a(" wa "o li-i" "he liabili"& for "he

!a&-en" of #eb" of !er on who were hi! owner in/ol/e# in -ari"i-e (o--er(e1 Thi a("wa "he re %l" of a U1 S1 S%!re-e 'o%r" #e(i ion "i"le#3 2The New $er e& S"ea- Na/iga"ion 'o1/ 1 "he Mer(han" Ban53 Howar# ,3 )+ + 12 In "he New $er e& S"ea- Na/1 'a e3 "he high(o%r" r%le# "ha" %n#er "he 'o--on Law3 hi! owner were liable for "he a(" of "heir hi!-a "er 1 In o"her wor# 3 if a !ar"& were "o hi! goo# on boar# a hi! an# o-e"hing ha!!ene#"o "he goo# %(h a being #e "ro&e# or #a-age# b& "he !eril of "he ea3 "he hi! owner ware !on ible "o "he owner of "he goo# 1

The hi! owner -% " !a& "o "he owner of "he goo# "he a-o%n" "he goo# were wor"h1 If "hehi! owner #i#n8" !a& "he #eb"3 "he owner of "he goo# (o%l# %e "he hi! owner an# (olle("1 If"he hi! owner faile# "o !a&3 "he (re#i"or (o%l# "hen file a lien on "he hi! whi(h wa (alle# a-ari"i-e lien whi(h #oe no" re9%ire !o e ion of "he ob.e("1 Thi A(" !e(ifi(all& gi/eli-i"e# liabili"& on hi!-en" of 2bill of an& ban5 or !%bli( bo#&12 A-eri(a wa fo%n#e# %!onMari"i-e or A#-iral"& Law be(a% e hi!!ing wa "he onl& -ean of (o--er(e a" "he fo%n#ing


19/46

of "he (o%n"r&1

The (ongre #e(i#e# in )+ ) "ha"3 a a re %l" of "he New $er e& S"ea- Na/1 'a e3 !er onwo%l# no longer be #rawn in"o owner hi! of hi! be(a% e of "he liabili"& in/ol/e#1 Shi!!ingon "he high ea i /er& ri 5& e !e(iall& a" "ha" !erio# of "i-e1

Af"er "he Li-i"e# Liabili"& A(" wa ena("e# >)++*?3 "he U1S1 S%!re-e 'o%r" in B%"ler / 1Bo "on Sa/annah S"ea- hi! 'o13 ) U1S1 ,C3 r%le# a follow = 2B%" i" i eno%gh "o a& "ha""he r%le of li-i"e# re !on ibili"& i now o%r -ari"i-e r%le1 I" i "he r%le b& whi(h "hro%gh "heA(" of 'ongre we ha/e anno%n(e# "ha" we !ro!o e "o a#-ini "er .% "i(e in -ari"i-e (a e 12

2The r%le of li-i"e# liabili"& !re (ribe# b& "he A(" of )+ ) i no"hing -ore "han "he ol#-ari"i-e r%le a#-ini "ere# in (o%r" of a#-iral"& in all (o%n"rie e0(e!" Englan# fro- "i-ei--e-orial an# if "hi were no" o3 "he %b.e(" -a""er i" elf i one "ha" belong "o "he#e!ar"-en" of Mari"i-e Law12

Ton"ine In %ran(e 4 )+ +In or#er "o e/a#e "he % %r& law whi(h ha# !re/en"e# "he grow"h of a f%n#e# & "e- of na"ionalin %ran(e3 go/ern-en" ha# fre9%en"l& re or"e# "o "he i %e of ann%i"ie an# (hil# en#ow-en"a a -ean of rai ing f%n# 1 The "on"ine wa a o-ewha" la"er #e/elo!-en"3 ha/ing been !%"in"o o!era"ion in ;ran(e #%ring "he &ear ) +*1 I" "oo5 i" na-e fro- "ha" of i" origina"or3Loren6o Ton"i3 a Neo!oli"an b& bir"h3 who wa a""ra("e# "o :ari b& "he regi-e of Ma6arin1 Ini" original for- "he "on"ine wa a loan3 2In whi(h "he !re-i%- wa ne/er "o be re!ai#3 b%" "heen"ire in"ere " on "he loan wa "o be #i/i#e# ea(h &ear a-ong "he %r/i/or or "he original%b (riber 12

The (hief (hara("eri "i(3 an# "ra#e-ar53 of "on"ine i "ha" "he !ool of a e" i #i/i#e# a-ong "he%r/i/or 3 a" "he o!"ion of "ho e %b (riber who #ro!!e# o%"3 or #i# no" %r/i/e %n"il "he "i-efor #i "rib%"ion ha# arri/e#1 Tha" i a wagering !oli(&3 .% " li5e "he George Ra!! So(ie"&1 TheE9%i"able Life In %ran(e 'o-!an&3 in )+ +3 in"ro#%(e# "he #eferre# #i/i#en# & "e-3 whi(hwa reall& an a!!li(a"ion of "he "on"ine !rin(i!le1 The -o " erio% flaw in "he #eferre##i/i#en# & "e- wa "he inabili"& of "he in %re# "o (o-!el an a((o%n"ing1

The general r%le i "ha" "he !oli(& hol#er i no" en"i"le# "o (o-!el "he (o-!an& "o a((o%n" for#i/i#en# 1 Nor (an "he !oli(&hol#er 2(o-!el "he #i "rib%"ion of "he %r!l% f%n# in o"her-anner or a" an& "i-e3 or in an& o"her a-o%n" "han "ha" !ro/i#e# for in "he (on"ra("12

A "a"e# in "he re!or" of "he Ar- "rong 'o--i""ee3 2"he !lan of #eferring #i/i#en# for long !erio# 111ha %n#o%b"e#l& fa(ili"a"e# large a((%-%la"ion 3 !ro/i#ing a!!aren"l& ab%n#an" -eanfor #o%b"f%l % e on "he one han#3 while (on(ealing on "he o"her "he b%r#en i-!o e# %!on "he

!oli(& hol#er 1112 A((or#ing "o George L1 Ar-hein3 In "r%("or in In %ran(e a" "he Uni/er i"& of:enn &l/ania3 2 111#eferre# #i/i#en# were !rohibi"e# b& law in "he legi la"ion :a1 of )* an#%b e9%en" &ear 1 Th% (a-e "o an en# a & "e- whi(h in )+*+ ha# %!er e#e# "o a /er& largee0"en" "ha" of ann%al #i/i#en# 3 an# whi(h in )*) ee-e# an"i9%a"e#12


20/46

%e "ion < Wha" -a#e i" 2an"i9%a"e#2 in )*) 7 A((or#ing "o Mr1 Ar-hein3 i" wa o%"lawe# in)* 3 b%" #i#n8" ee- an"i9%a"e# %n"il )*) J $ohn @1 Tarbo03 The (o--i ioner of In %ran(efor "he S"a"e of Ma a(h% e"" ha# "hi "o a& abo%" "on"ine in hi ann%al re!or"< 2The fal e i#eaof life in %ran(e a in/e "-en" bega" "he e9%all& fal e (on(e!"ion of life in %ran(e a a be"3 an#"he la""er ga/e bir"h "o "he -o#ern "on"ine3 whi(h i a wager12

2111In "he "on"ine "he forfei"%re go "o enri(h "he in#i/i#%al %r/i/or of "he !e(ial (la of !oli(& hol#er who en"er "he (o-!a("3 (on "i"%"ing a (o-!an& liabili"& in "ea# of a (o-!an&a e"3 for "he !ro"e("ion of i" !oli(& obliga"ion 111 The "a5e !la&e# for3 ra"her "han "he ga-ei" elf3 (on "i"%"e "he (hief offen e1 O%r law (on#e-n 3 forbi# 3 an# -a5e /oi# "he (on"ra(" offorfei"%re12 2A wa "r%l& "e "ifie# before "he (o--i""ee of "he New Yor5 A e-bl&3 in)+CC3 111 "he "on"ine !oli(& i "a5en for !%r!o e of in/e "-en" b& a e" of -en who wo%l# no"in %re "heir li/e a" all1 The in#%(e-en" "o "he in/e "-en" i 111"he e0!e("e# !rofi" fro-forfei"%re 1112

2A i#e fro- "he -oral 9%ali"& of "he -a""er3 44(on(erning whi(h I wai/e (on"ro/er &3 44 "he

(on i#era"ion whi(h "he !%bli( a !e(" ee- "o -e !rin(i!all& "o in/i"e are "he e= ;ir "3whe"her i" i !r%#en" "o -a5e of o%r in %ran(e (o-!anie grea" ban5ing e "abli h-en" 3111an#3e(on#3 whe"her an in "i"%"ion organi6e# a "he life in %ran(e & "e- wa 3 for a bene/olen" an#%n elfi h % e3 hall be (o-bine# wi"h en"er!ri e of elfi h !e(%la"ion a "he "on"ine %n#eniabl&i 12

I a- "rongl& !er %a#e# of "he i-!li(i"l& an# !o i"i/e #anger of -agnif&ing "he ban5ing fea"%reof life in %ran(e in "i"%"ion 3 "o a((o--o#a"e -o#ern !lan of "on"ine !e(%la"ion an#en#ow-en" in/e "-en"1

$ohn Tarbo0 wa (learl& a&ing "ha"3 a" "ha" "i-e3 "here were -o#ern !lan "o -a5e in %ran(e(o-!anie !e(ifi(all&3 "on"ine in %ran(e (o-!anie grea" ban5ing in "i"%"ion 1

The "on"ine ha# been #e(lare# %nlawf%l in e/eral "a"e an# "he e !eo!le 5new "ha" "he& ha# "o#o o-e"hing "o !ro"e(" "heir -one&1 The& bro%gh" o/er "he on of one of "he big ban5ingfa-ilie fro- E%ro!e 5nown a :a%l Warb%rg3 fro- "he Ho% e of Warb%rg3 "ha" #a"e ba(5 "o"he Han ea"i( Leag%e of -er(han" 1

An#3 i" wa he who ol# "he A-eri(an !%bli( on (rea"ing a ;e#eral Re er/e Ban53 o "ha" "herewo%l#n8" be an& -ore !ani( an# #e!re ion 3 "ha" "he& wo%l# be able "o e/en o%" "he e(ono-&

b& (on"rol of "he -one& %!!l&1 B& "hi one A("3 "he A-eri(an !eo!le lo " "heir in#e!en#en(e1I"3 in fa("3 wa "he o!!o i"e of "he Bri"i h %rren#er a" Yor5"own1 Gi/ing (on"rol of o%r (re#i"an# -one& %!!l& "o a !ri/a"e ban5ing organi6a"ion3 b& "he na-e of "he ;e#eral Re er/e3 wa"he %rren#er of o%r in#e!en#en(e1

'ongre !a e# "he ;e#eral Re er/e A(" on De(e-ber , 3 )*) wherein i" -a#e ;e#eralRe er/e No"e #eb" obliga"ion "o "he Uni"e# S"a"e 3 an# a%"hori6e# "he ;e#eral Re er/e "o be"he i %er of "he e #eb" obliga"ion 1 The ;e#eral Re er/e A(" al o "i!%la"e# "ha" "he in"ere " on"he #eb" "o "he ;e#eral Re er/e a a -ari"i-e len#er "o "he Uni"e# S"a"e wa "o be !ai# ingol#1 No !ro/i ion wa -a#e in "he A(" for !a&ing off "he !rin(i!le1


21/46

There wa al o a !ro/i o "ha" "he !eo!le ha# , &ear "o (hallenge "he A(" 111 NOTE< )1 Un#er"he law of Na"ion 3 an a("ion on %o Warran"o (an be bro%gh" wi"hin , &ear 1 %o Warran"o3in "hi (a e3 wo%l# be an a("ion in "he 'o%r" of A#-iral"& #e-an#ing 2B& who e A%"hori"&23an# !roof of "ha" a%"hori"&3 "he A(" wa i-!le-en"e#1

,1 2:%bli( !oli(&2 i !ar" an# !ar(el of "he Law of Na"ion 1 The A(" wa ne/er (hallenge# in a(o%r" of !ro!er .%ri #i("ion a#-iral"& 3 !robabl& be(a% e an&one who wan"e#3 or "rie#3 "o(hallenge i" #i#n8" 5now how1

On $%ne , 3 )* ,3 in "he -i# " of "he Grea" De!re ion3 'ongre -an Lo%i T1 M(;a##ena##re e# "he Ho% e of Re!re en"a"i/e on "hi %b.e("1 Re!re en"a"i/e M(;a##en ha#

!re/io% l& er/e# a !re i#en" of "he ;ir " Na"ional Ban53 'an"on3 :a1= an# la"er he er/e# a(hair-an of "he 'o--i""ee on Ban5ing an# '%rren(&1 ;ollowing are ele("e# e0(er!" fro- hia##re < 2So-e !eo!le "hin5 "he ;e#eral Re er/e Ban5 are Uni"e# S"a"e Go/ern-en"In "i"%"ion 1 The& are no" go/ern-en" in "i"%"ion 1 The& are !ri/a"e (re#i" -ono!olie whi(h

!re& %!on "he !eo!le of "he Uni"e# S"a"e for "he benefi" of "he- el/e an# "heir foreign

(% "o-er =2 2The& ho%l# no" ha/e foi "e# "ha" 5in# of (%rren(&3 na-el& an a e" (%rren(&3 on"he Uni"e# S"a"e Go/ern-en"1 The& ho%l# no" ha/e -a#e "he go/ern-en" liable on "he !ri/a"e#eb" of in#i/i#%al an# (or!ora"ion an#3 lea " of all on "he !ri/a"e #eb" of foreigner 12 2The;e#eral Re er/e No"e 3 "herefore3 in for- ha/e o-e of "he 9%ali"ie of go/ern-en" !a!er-one&3 b%"3 in %b "an(e3 are al-o " !%rel& a e" (%rren(& !o e ing a go/ern-en" g%aran"&again " whi(h (on"ingen(& "he go/ern-en" ha -a#e no !ro/i ion wha"e/er12 2Mr1 'hair-an3"here i no"hing li5e "he ;e#eral Re er/e !ool of (onfi (a"e# ban5 #e!o i" in "he worl#1 I" i a

!%bli( "ro%gh of A-eri(an weal"h1112 2I ee no rea on wh& "he A-eri(an "a0!a&er ho%l# behewer of woo# an# #rawer of wa"er for "he E%ro!ean an# A ia"i( (% "o-er of "he ;e#eralRe er/e Ban5 12 2I no" i" high "i-e "ha" we ha# an a%#i" of "he ;e#eral Re er/e Boar# an# "he;e#eral Re er/e Ban5 an# an e0a-ina"ion of all o%r go/ern-en" bon# an# e(%ri"ie an#

!%bli( -onie in "ea# of allowing "he (orr%!" an# #i hone " ;e#eral Re er/e Boar# an# "he;e#eral Re er/e Ban5 "o !e(%la"e wi"h "ho e e(%ri"ie an# "hi (a h in "he no"orio% o!en#i (o%n" -ar5e" of New Yor5 'i"&7 2 2E/er& effor" ha been -a#e b& "he ;e#eral Re er/eBoar# "o (on(eal i" !ower b%" "he "r%"h i "he ;e#eral Re er/e Boar# ha % %r!e# "heGo/ern-en" of "he Uni"e# S"a"e 12 2Mr1 'hair-an3 when "he ;e#eral Re er/e A(" wa !a e#"he !eo!le of "he Uni"e# S"a"e #i# no" !er(ei/e "ha" a worl# & "e- wa being e" %! here "ha""he Uni"e# S"a"e wa "o be lowere# "o "he !o i"ion of a (oolie (o%n"r&111an# wa "o %!!l&finan(ial !ower "o an in"erna"ional %!er "a"e 44 a %!er "a"e (on"rolle# b& in"erna"ional ban5eran# in"erna"ional in#% "riali " a("ing "oge"her "o en la/e "he worl# for "heir own !lea %re12

'ongre -an Wrigh" :a"-an3 of "he Ho% e Ban5ing an# '%rren(& 'o--i""ee ai# in )* ,< 2Infa(" "here ha ne/er been an in#e!en#en" a%#i" of ei"her of "he ), ban5 of "he ;e#eral Re er/eBoar# "ha" ha been file# wi"h "he 'ongre where a Me-ber wo%l# ha/e an o!!or"%ni"& "oin !e(" i"1 The General A((o%n"ing Offi(e #oe no" ha/e .%ri #i("ion o/er "he ;e#eral Re er/e12

%e "ion< Wh& #oe no" "he General A((o%n"ing of "he Uni"e# S"a"e ha/e .%ri #i("ion o/er "he;e#eral Re er/e "o #e-an# an a((o%n"ing7 The an wer i "ha" a((o%n"abili"& of "he ;e#eralRe er/e i no" in "he (on"ra("3 "he ;e#eral Re er/e A("3 .% " a i" wa no" in "he (on"ra(" of "heGeorge Ra!! So(ie"& or "on"ine in %ran(e !oli(ie 1 The ;e#eral Re er/e A(" !ro/i#e for


22/46

a((o%n"abili"& of 2-e-ber ban5 32 B%"3 b& #efini"ion3 in "he A(" i" elf3 "he ;e#eral Re er/e ban5 are no" 2-e-ber ban5 2 an#3 "herefore are e0e-!" fro- a((o%n"abili"& 44 b& (on"ra("1

'ongre -an M(;a##en an# 'ongre -an :a"-an3 bo"h e0!er" in ban5ing an# finan(e3 #i#no" %n#er "an# "hi 1 How -an& ena"or an# re!re en"a"i/e "ha" igne# "he ;e#eral Re er/e

A(" in )*) 3 #o &o% %!!o e3 %n#er "oo# wha" "he& were igning7 No" onl& wi"h re !e(" "o "hii %e3 b%" o"her "ha" ha/e been rai e# fro- "i-e "o "i-e7

Wha" abo%" "he n%-ero% a""e-!" "o a%#i" ;or" @no077 The ;e#eral Re er/e A(" "i!%la"e"ha" gol# owne# b& "he ;e#eral Re er/e -a& be "ore# in "orage fa(ili"ie of "he Uni"e# S"a"e 1

Now3 if 'ongre (anno" (o-!el an a((o%n"ing for ;or" @no03 who3 #o &o% %!!o e own "hegol#7

Now3 we -a& a 5 o%r el/e ano"her 9%e "ion a" "hi !oin" 44 I "he ;e#eral Re er/e a -ari"i-elen#er3 or i i" an in %ran(e %n#erwri"er3 "o Uni"e# S"a"e 7 So-e a##i"ional infor-a"ion fro- anE a& on Mari"i-e Loan 3 -a& hel! % #e(i#e "hi 9%e "ion< 2The (on"ra(" of -ari"i-e loana!!roa(he -ore nearl& "o "ha" of In %ran(e1 There i a "rong analog& be"ween "he-1 In "heir

effe(" "he& are (on "r%e# on "he a-e !rin(i!le 12 2In one (on"ra("3 "he len#er bear "he eari 5 3 in "he o"her3 "he %n#erwri"er12 2In "he one3 "he -ari"i-e in"ere " i "he !ri(e of "he !eril=an# "hi "er- (orre !on# wi"h "he !re-i%- whi(h i !ai# on "he o"her12

So we ee "ha" i" reall& i i--a"erial3 %n#er Mari"i-e Law3 whe"her "he ;e#eral Re er/e i"ho%gh" of a a -ari"i-e len#er3 or a an in %ran(e %n#erwri"er3 "o "he Uni"e# S"a"e 1 In ei"her(a e "he len#er3 or %n#erwri"er3 bear "he ri 5 44an# "he -ari"i-e law (o-!elling !erfor-an(ein !a&ing "he in"ere "3 or !re-i%-3 are one an# "he a-e1 Al o3 in ei"her (a e3 a e" (an beh&!o"he(a"e# a e(%ri"& for "he !ri(e of "he !eril1

111 !ea5ing of ri 53 le"8 wee wha" ri 5 "he ;e#eral Re er/e i in(%rring a len#er3 or %n#erwri"er3"o "he Uni"e# S"a"e in e0(hange for Uni"e# S"a"e Se(%ri"ie < Mariner E((le 3 for-er(hair-an of "he ;e#eral Re er/e Boar#3 hel# "he following e0(hange wi"h 'ongre -an :a"-an

before "he Ho% e Ban5ing an# '%rren(& 'o--i""ee on Se!"e-ber 3 )* )<

" Con# essman Patman- ./ % Eccles) how !i! 'ou #et the mone' to bu' those twobillions o$ #o&e nment secu ities?." / % Eccles- .We c eate! it%. Patman-" .0ut o$ what?." / % Eccles- .0ut o$ the i#ht to issue c e!it mone'%.

An#3 fro- f%r"her "e "i-on& fro- "he ;e#eral Re er/e i" elf< In a !%bli(a"ion fro- "he ;e#eralRe er/e Ban5 of 'hi(ago3 en"i"le# 2Two ;a(e of Deb"32 44 2'%rren(& i o wi#el& a((e!"e# a a-e#i%- of e0(hange "ha" -o " !eo!le #o no" "hin5 of i" a #eb"12In "he 'hi(ago ban5 !%bli(a"ion en"i"le# 2Mo#ern Mone& Me(hani( 32 we fin#< 2Nei"her !a!er(%rren(& nor #e!o i" ha/e /al%e a (o--o#i"ie 1 In"rin i(all&3 a #ollar bill i .% " a !ie(e of

!a!er1 De!o i" are -erel& boo5 en"rie 1 'oin #o ha/e o-e in"rin i( /al%e a -e"al3 b%" forle "han "heir fa(e a-o%n"12 2Wha"3 "hen -a5e "he e in "r%-en" 44(he(5 3 !a!er -one&3 an#(oin 44 a((e!"able a" fa(e /al%e in !a&-en" of all #eb" an# for o"her -one"ar& % e 7 Mainl&3 i"i "he (onfi#en(e !eo!le ha/e "ha" "he& will be able "o e0(hange %(h -one& for real goo# an#


23/46

er/i(e whene/er "he& (hoo e "o #o o12 2'onfi#en(e in "he e for- of -one& al o ee- "o be"ie# in o-e wa& "o "he fa(" "ha" a e" e0i " on "he boo5 of "he go/ern-en" an# "he ban5e9%al "o "he a-o%n" of "he -one& o%" "an#ing3 e/en "ho%gh -o " of "he e a e" are no -ore"han !ie(e of !a!er %(h a (% "o-er8 !ro-i or& no"e 3 an# i" i well %n#er "oo# "ha" -one&i no" re#ee-able in "he-12

Mo#ern Mone& Me(hani( !%bli(a"ion fro- 'hi(ago3 on(e again< 2De!o i" are -erel& boo5en"rie 111#e-an# #e!o i" are liabili"ie of (o--er(ial ban5 1 The ban5 "an# rea#& "o (on/er"%(h #e!o i" in"o (%rren(& or "ran fer "heir owner hi! a" "he re9%e " of #e!o i"or 12

;ro- "he ;e#eral Re er/e ban5 of S"1 Lo%i Re/iew< 2B%" wha" in#%(e "he non4ban5ing !%bli("o a((e!" liabili"ie of !ri/a"e3 !rofi"4-a5ing in "i"%"ion %(h a ban5 72 2The #e(rea e in

!%r(ha ing !ower in(%rre# b& hol#er of -one& #%e "o infla"ion i-!ar" gain "o "he in %rer of-one&11112

2The gain whi(h a((r%e "o i %er of -one& are #eri/e# fro- "he #ifferen(e be"ween "he (o "

of i %ing -one& an# "he ini"ial !%r(ha ing !ower of new -one& in (ir(%la"ion1 S%(h gain are(alle# 8 eigniorage81 If "he goo# an# er/i(e for whi(h "he i %er e0(hange -one& ha/e a-ar5e" /al%e grea"er "han "ha" of re o%r(e % e# "o !ro#%(e "he -one&3 "hen "he i %rer re(ei/ea ne" gain12

;ro- a boo5 en"i"le 2The ;e#eral Re er/e S& "e- 4 I" :%r!o e an# ;%n("ion 32 !%bli he# b&"he ;e#eral Re er/e Boar# in )* *< 2;e#eral Re er/e Ban5 're#i" re e-ble ban5 (re#i" ingeneral3 b%" %n#er "he law i" ha a li-i"e# an# !e(ial % e 44 a a o%r(e of -e-ber ban5 re er/ef%n# 1 I" i i" elf a for- of -one& a%"hori6e# for !e(ial !%r!o e 3 (on/er"ible in"o o"her for-of -one&3 (on/er"ible "herefro-3 an# rea#il& (on"rollable a "o a-o%n"1 ;e#eral Re er/e Ban5(re#i"3 "herefore3 a alrea#& "a"e#3 #oe no" (on i " of f%n# "ha" "he Re er/e a%"hori"ie 2ge"2o-ewhere in or#er "o len#3 b%" (on "i"%"e f%n# "ha" "he& are e-!owere# "o'REATE12 e-!ha i a##e#

In hi no"e en"i"le# 2A :ri-er on Mone&32 'ongre -an :a"-an "ell "ha" %!on hearing "ha";e#eral Re er/e Ban5 hol# a large a-o%n" of (a h3 he wen" "o "wo of i" regional ban5 1 Hea 5e# "o ee "heir bon# 1 He wa le# in"o /a%l" an# hown grea" !ile of go/ern-en" bon#%!on whi(h "he !eo!le are "a0e# for in"ere " Mr1 :a"-an "hen a 5e# "o ee "heir (a h1 The ban5offi(ial ee-e# (onf% e#1 When Mr1 :a"-an re!ea"e# "he re9%e "3 "he& howe# hi- o-ele#ger an# ban5 (he(5 1

Mr1 :a"-an warn % "o re-e-ber "ha"< 2The (a h3 in "r%"h3 #oe no" e0i " an# ne/er hae0i "e#1 Wha" we (all (a h re er/e 8 are i-!l& boo55ee!ing (re#i" en"ere# %!on "he le#gerof "he ;e#eral Re er/e Ban5 1 The e (re#i" are (rea"e# b& "he ;e#eral Re er/e Ban5 an# "hen

!a e# along "hro%gh "he ban5ing & "e-12

So3 b& "he "e "i-on& of "he ;e#eral Re er/e i" elf3 we ee<)1 I" (rea"e -one& o%" of "hin air 44 a" no (o " or ri 5 "o "he ;e#eral Re er/e S& "e- 44 fro- i"

righ" "o i %e (re#i"3 gran"e# in "he ;e#eral Re er/e A("1,1 I" gain fro- "he infla"ion i" (rea"e 1


24/46

1 Mone& i no" re#ee-able in i" liabili"ie 11 De-an# #e!o i" are liabili"ie of ban5 11 ;e#eral Re er/e No"e are liabili"ie of ;e#eral Re er/e11 I" gain 3 a i %er of (re#i" -one&3 are "he #ifferen(e be"ween "he (o " of (rea"ing "ha"

(re#i" e en"iall& no"hing an# "he ini"ial !%r(ha ing !ower when "he new -one& i !%" in"o

(ir(%la"ion1

In a re!rin" of "he boo5 2THE ;EDERAL RESERVE SYSTEM 4I" :%r!o e an# ;%n("ion 32 S1W1 A#a- 3 % e "he ;e#eral Re er/e own !%bli he# fig%re "o gi/e % an e0a-!le of howl%(ra"i/e "hi no ri 5 (he-e i "o "he ;e#eral Re er/e< The !a%!er The ;e#eral Re er/eS& "e- wi"h a e" of onl& , billion wi"h no !ro#%("i/e 5now4how3 wi"h no !ro#%("ion ofgoo# 3 an# fewer "han ) 3 "o(5hol#er 3 loane# 7 "he ri(h -an The Uni"e# S"a"e ofA-eri(a wi"h a "rillion in !ro#%("i/e (a!a(i"& an# 5now4how wi"h well o/er billion ina e" an# )C -illion "o(5hol#er 3 in(l%#ing "he afore ai#) 3 ban5 "o(5hol#er 3 , billion "o figh" Worl# War II1

'an &o% i-agine "he grea"e " (or!ora"ion on ear"h3 "he Go/ern-en" of "he U1 S1 wi"h )C-illion aler" f%ll4of45now4how "o(5hol#er 3 an# a e" r%nning o/er billion3 "%rning "o a-all eg-en" of i" !o!%la"ion3 wi"h fewer "han ) 3 "o(5hol#er an# a e" of onl& ,

billion "o borrow -one&7

'an &o% (on(ei/e of Ro(5efeller a&ing "o hi (ha%ffe%r3 2To-3 I a- "ran ferring -& !er onal ban5 a((o%n" whi(h i well o/er ) billion3 "o &o%r a((o%n"1 Yo% -a& !en# i" a &o% !lea e= !ro/i#e# a of"en a I a 5 for -one&3 &o% will le" -e ha/e i"1 Of (o%r e3 I will gi/e &o% -& no"efor (a h I re(ei/e3 an# "r& "o r% "le fro- -& (hil#ren eno%gh -one& "o !a& &o% in"ere " on "he

borrowe# -one&12 Well3 "ha" i e0a("l& wha" 'ongre #i# in)*) when i" !a e# "he ;e#eral Re er/e A("1

To figh" Worl# War II3 we ga/e "he ban5er of "he Uni"e# S"a"e , billion in U1 S1 Bon#"ha" we -igh" % e o%r own3 "he Na"ion8 (re#i"1 B& % ing "he re er/e -%l"i!lier3 "hi ga/e "he-) "rillion , billion ban5 (re#i"1 Wha" an %nearne# bonan6a for "he ban5er J 're#i" are "o"he ban5er wha" &o%r #e!o i" are "o &o%1 The& (an len# "he-3 or % e "he- "o b%& in/e "-en"4 i" i (a h "o "here ban5er J

So3 b& a##ing "he , billion in U1S1 Bon# we ab ol%"el& ga/e "o "he- "heir ) "rillion , billion ban5 (re#i"3 an# we fin# "ha" "he ban5er "he "hen !a%!er (a-e o%" of Worl# War II)3 billion ri(her3 an# "he "hen ri(h -an "he Uni"e# S"a"e Go/ern-en" (a-e o%" ,

billion in #eb" "o "he ban5er "he !a%!er "han5 "o "he "%!i#i"& an#Kor /enali"& of o%r'ongre -en3 new !a!er 3 .o%rnal 3 an# e#%(a"e# !eo!le of "he na"ion1 'learl&3 b& "heir own"e "i-on&3 "he ;e#eral Re er/e3 a a -ari"i-e len#er or in %rer3 no" onl& ha no"hing a" ri 5 i1e13no"hing "o lo e in "he -ari"i-e /en"%re for !rofi" 44b%" (an onl& gain on a (ale "ha" i al-o "in(on(ei/able3 .% " li5e "he "on"ine in %ran(e (he-e 3 an# .% " li5e "he George Ra!! Har-on&So(ie"&1

The ignifi(an(e of "hi will be(o-e /er& a!!aren" when we a!!l& "he law "o "he fa("1 The ea-e !eo!le who were gi/en (on"rol of o%r !%bli( -one& & "e-3 for "he o "en ible !%r!o e of


25/46


26/46

:ro"hono"ar&8 Offi(e in Harri b%rg3 "he "a"e 'a!i"ol1

A re(ei/er for "he S"a"e "rea %r& an# all i" offi(e -eaning all "he (o%n"& "rea %rer 3 Willia-D1 Gor#on3 Se(re"ar& of Ban5ing3 wa gran"e# "he a%"hori"& b& A(" III "o a!!oin" a fi#%(iar& "o-anage all "he finan(ial -a""er of "he S"a"e1 He al o ha# "he !ower "o a ign a e(%ri"& for

loan (on"ra(" fro- "he ;e#eral Go/ern-en"3 all !ro!er"& in "he "a"e3 real an# !er onal3re o%r(e an# -an& o"her a e" a in %ran(e "o "he ;e#eral Re er/e1

Ho% e $oin" Re ol%"ion )*, 4 )*, &ear af"er ena("-en" of "he ;e#eral Re er/e A("

On $%ne 3 )* 3 'ongre ena("e# H$R4)*, "o % !en# "he gol# "an#ar# an# "o abroga"e "hegol# (la% e1 Thi re ol%"ion #e(lare# "ha" 2Wherea "he hol#ing or #ealing in gol# affe(" "he

!%bli( in"ere "3 an# are "herefore %b.e(" "o !ro!er reg%la"ion an# re "ri("ion= an# wherea "hee0i "ing e-ergen(& ha #i (lo e# "ha" !ro/i ion of obliga"ion whi(h !%r!or" "o gi/e "heobligee a righ" "o re9%ire !a&-en" in gol# or a !ar"i(%lar 5in# of (oin or (%rren(&111are

in(on i "en" wi"h "he #e(lare# !oli(& of (ongre 111in "he !a&-en" of #eb" 1Thi re ol%"ion #e(lare# "ha" an& obliga"ion re9%iring 2!a&-en" in gol# or a !ar"i(%lar 5in# of(oin or (%rren(&3 or in an a-o%n" in -one& !oli(&= an# 111 E/er& obliga"ion here"ofore orhereaf"er in(%rre#3 hall be #i (harge# %!on !a&-en"3 #ollar for #ollar3 in an& (oin or (%rren(&whi(h a" "he "i-e of !a&-en" i legal "en#er for !%bli( an# !ri/a"e #eb" 12 P NOTE "ha" "hewor# #o no" "al5 abo%" 2!a&-en"2 of #eb"3 b%" (learl& "a"e "ha" 2E/er& Obliga"ion 111 Shall be#i (harge#12

In "he (a e of S"ane5 /1 Whi"e3 )C, Minn1 * 3 ,) H1W1 C+ 3 "he (o%r" e0!laine# "he legal#i "in("ion be"ween "he wor# 2!a&-en"2 an# 2#i (harge2< 2There i a #i "in("ion be"ween a#eb" #i (harge#8 an# a #eb" !ai#18 When #i (harge# "he #eb" "ill e0i " "ho%gh #i/e "e# of i"(hara("er a a legal obliga"ion #%ring "he o!era"ion of "he #i (harge1 So-e"hing of "he Original/i"ali"& of "he #eb" (on"in%e "o e0i "3 whi(h -a& be "ran ferre#3 e/en "ho%gh "he "ran feree"a5e i" %b.e(" "o i" #i abili"& in(i#en" "o "he #i (harge1 The fa(" "ha" i" (arrie o-e"hingwhi(h -a& be a (on i#era"ion for a new !ro-i e "o !a&3 o a "o -a5e an o"herwi e wor"hle

!ro-i e a legal obliga"ion3 -a5e i" "he %b.e(" of "ran fer b& a ign-en"12

Th% 3 i" i (lear "ha"3 a a re %l" of H$R )*, an# fro- "ha" #a& forwar# $%ne 3 )* 3 no oneha been able "o !a& a #eb"1 The onl& "hing "he& (an #o i "en#er in "ran fer of #eb" 3 an# "he#eb" i !er!e"%al1 The % !en ion of "he gol# "an#ar#3 an# !rohibi"ion again " !a&ing #eb" 3re-o/e# "he %b "an(e for o%r 'o--on Law "o o!era"e on3 an# (rea"e# a /oi#3 a far a "he lawi (on(erne#1 Thi %b "an(e wa re!la(e# wi"h a 2:%bli( Na"ional 're#i"2 & "e- where #eb" i-one& The ;e#eral Re er/e (all i" 2-one"i6e# #eb"2 o/er whi(h "he onl& .%ri #i("ion a" iA#-iral"& an# Mari"i-e1

H$R4)*, wa i-!le-en"e# i--e#ia"el&1 The #a& af"er :re i#en" Roo e/el" igne# "here ol%"ion "he "rea %r& offere# "he !%bli( new go/ern-en" e(%ri"ie 3 -in% "he "ra#i"ional2!a&able in gol#2 (la% e1 Ar"i(le I3 Se("ion ) 3 'la% e )3 !ro (ribe "he "a"e -a5ing an& "hing

b%" gol# an# il/er (oin a "en#er in !a&-en" of #eb" 44b%"3 "hi Ar"i(le #oe no" (on"ain an


27/46

ab ol%"e !rohibi"ion again " "he S"a"e -a5ing o-e"hing el e a "en#er in "ran fer of #eb"1

H$R4)*, !rohibi" !a&-en" of #eb" an# %b "i"%"e 3 in i" !la(e3 a #i (harge of an obliga"ion 44"hereb& no" onl& %b/er"ing3 b%" "o"all& b&!a ing "he 2ab ol%"e !rohibi"ion2 o (aref%ll&engineere# in"o "he 'on "i"%"ion1 There i 3 now3 no"hing for "hi Ar"i(le "o o!era"e on3 .% " a

"here i no"hing for 'o--on Law "o o!era"e on1 :er!e"%al #eb"3 bill 3 no"e 3 (he9%e an#(re#i" fall wi"hin a "o"all& #ifferen" .%ri #i("ion "han (on"e-!la"e# b& Ar"i(le I3 Se("ion ) 3'la% e ) 44 an# "ha" .%ri #i("ion belong e0(l% i/el& "o "he Law of A#-iral"& an# Mari"i-e1

Now3 i" i ea & "o ee how 2bill 2 a !len"& a oa5 lea/e 3 2!oll%"e# "he law af"er "he War ;orIn#e!en#en(e3 a #e (ribe# b& :ele"iah Web "er21 Thi i how we lo " a((e "o %b "an"i/e'o--on Law 44 "he /er& law "he Min%"e Men fo%gh" "o regain1

H1+"234 (laces e&e ' (e son who !eals in the (ublic national c e!it in the le#al (osition o$a me chant) an! the onl' 5u is!iction o&e an' cont o&e s' in&ol&in# this sub5ect matte isA!mi alt' an! /a itime 1 Ob/io% l&3 if we (anno" !a& o%r #eb" a" law3 we are al o benefi"ingfro- li-i"e# liabili"& %n#er "he Li-i"e# Liabili"& A(" when we % e "hi (re#i" 44 an#3 "ha" i

-arine in %ran(eJThe #efini"ion of 2liabili"&2 an# 2in %re2 will hel! (on/in(e % of "hi fa(" 44 in anal&6ing "he e#efini"ion 3 5ee! in -in# "he #i "in("ion be"ween 2!a&-en"2 an# 2#i (harge21 Liabili"&< Thewor# i a broa# "er-1 I" ha been #efine# "o -ean< all (hara("er of #eb" an# obliga"ion 111 an&5in# of #eb" or liabili"&3 ei"her ab ol%"e or (on"ingen"3 e0!re or i-!lie# 111 (on#i"ion whi(h(rea"e a #%"& "o !erfor- an a(" i--e#ia"el& or in "he f%"%re 111 #%"& "o !a& -one& or "o !erfor-o-e o"her er/i(e 111 "he "a"e of being bo%n# or obliga"e# in law or .% "i(e "o #o3 !a&3 or -a5egoo# o-e"hing12 In %re< 2To engage "o in#e-nif& a !er on again " !e(%niar& lo fro-!e(ifie# !eril or !o ible liabili"&21

UESTION )< Who #o &o% %!!o e "oo5 !o e ion of "he "rea %r& of "he S"a"e of :a1 on$%ne 3 )* 3 44 "he -o-en" H$R4)*, -a#e i" i-!o ible for "he S"a"e of :enn &l/ania "o !a&i" #eb" 7

UESTION ,< Lan# "i"le being allo#ial in :enn &l/ania3 wha" wa "he S"a"e A e-bl&8a%"hori"& an# .%ri #i("ion "o !le#ge "he e allo#i%- "o "he ;e#eral Re er/e a e(%ri"& for loan(on"ra(" fro- "he ;e#eral Go/ern-en"7

UESTION < If "he in#i/i#%al (i"i6en of :enn &l/ania were in#ee# 2 o/ereign2 %n#er "he'o--on Law 44Wha" wa "he a%"hori"& an# .%ri #i("ion of "he S"a"e A e-bl& "o !le#ge "heirlabor "o "he ;e#eral Re er/e !ool7

'learl&3 "he allege# a%"hori"& an# .%ri #i("ion i "he o4(alle# !%bli( !oli(& #e(lare# b&'ongre 1 We will re"%rn "o "hi %b.e(" la"er on1

If all "he a e" of "he Uni"e# S"a"e ha/e been h&!o"he(a"e# "o "he ;e#eral Re er/e 2!ool2 ae(%ri"& for "he -ari"i-e loan an# in %ran(e %n#erwri"ing !oli(&3 "hen "ha" rai e a (o%!le of9%e "ion


28/46

UESTION )< If "he Uni"e# S"a"e 2#ie 2 or i -erge# %n#er a one worl# go/ern-en"3 whoge" "he !ool7

UESTION ,< If "he ;e#eral Re er/e 2#ie 2 b& wa& of ge""ing i" (har"er re (in#e#3 who ge""he !ool7

The an wer (an be fo%n# in "he ;e#eral Re er/e A(" i" elf<

2Sho%l# a ;e#eral Re er/e ban5 be #i ol/e# or go in"o li9%i#a"ion3 an& %r!l% re-aining3 af"er"he !a&-en" of all #eb" 3 #i/i#en# re9%ire-en" a hereinbefore !ro/i#e#3 an# "he !ar /al%e of"he "o(53 hall be !ai# "o an# be(o-e "he !ro!er"& of "he Uni"e# S"a"e an# hall be i-ilarl&a!!lie#21

) US' ) B !ro/i#e# "ha" <

2No gol# hall af"er $an%ar& 3 )* 3 be (oine#3 an# no gol# (oin hall af"er $an%ar& 3 )* 3

be !ai# o%" or #eli/ere# b& "he Uni"e# S"a"e = !ro/i#e# howe/er3 "ha" (oinage -a& (on"in%e "o be e0e(%"e# b& "he -in" of "he Uni"e# S"a"e for foreign (o%n"rie 21

Thi e0(e!"ion wa ne(e ar& be(a% e foreign (o%n"rie 3 being re(ogni6e# or o/ereign3 (o%l#no" be hel# "o "he in"ernal !%bli( !oli(& of "he Uni"e# S"a"e 1 H$R4)*, wa bin#ing onl& %!on"ho e in#i/i#%al who were benefi(iarie of !%bli( !oli(&= "ha" being "he !ri/ilege of li-i"e#liabili"& for !a&-en" of #eb" ari ing o%" of !ar"i(i!a"ion in "he ;e#eral Re er/e :%bli( 're#i"S& "e-1

H$R4)*, a%"o-a"i(all& e0"en#e# "he !ri/ilege "o renege on #eb" "o e/er& !er on % ing "he;e#eral Re er/e ban5ing & "e-= howe/er3 ne/er forge" "ha" when &o% o!era"e on a !ri/ilege3&o% ha/e "o re !e(" "he r%ler of "he gi/er of "ha" !ri/ilege1;%r"her-ore3 in "he (a e of Grea" ;all Mfg1 'o1 /1 A""orne& General3), U1S1 +)3 "he (o%r" ai# < 2The (o%r" will no" !a %!on "he (on "i"%"ionali"& of a "a"%"e a""he in "an(e of one who ha a/aile# hi- elf of i" benefi" 12

Thus) i$ 'ou a&ail 'ou sel$ o$ an' bene$its o$ the (ublic c e!it s'stem 'ou wai&e the i#ht tochallen#e the &ali!it' o$ an' statute (e tainin# to) an! con$e in# .bene$its. o$ this s'stemon the basis o$ constitutionalit'%

Erie Railroa# /1 To-!5in 3 U1S1 )* +

In i" #e(i ion of "he (a e of Erie R1 R1 /1 To-!5in 3 in )* +3 "he S%!re-e (o%r" o/er"%rne# "heSwif" /1 T& on #e(i ion of )+ , b& "a"ing< In "he Erie (a e3 $% "i(e Bran#ei wro"e< 2E0(e!" in-a""er go/erne# b& "he ;e#eral 'on "i"%"ion or b& a(" of 'ongre 3 "he law "o be a!!lie# inan& (a e i "he law of "he S"a"e 111 There i no ;e#eral General 'o--on

Common Law_ How the British Legal System Has Been Used to Enslave Us

Documents