A Phone Call To The Federal Reserve Bank




The following is a conversation with Mr. Ron Supinski of the Public Information
Department of the San Francisco Federal Reserve Bank. This is an account of
that conversation.
CALLER - Mr. Supinski, does my country own the Federal Reserve System?
MR. SUPINSKI - We are an agency of the government.
CALLER - That's not my question. Is it owned by my country?
MR. SUPINSKI - It is an agency of the government created by congress.
CALLER - Is the Federal Reserve a Corporation?
MR. SUPINSKI - Yes
CALLER - Does my government own any of the stock in the Federal Reserve?
MR. SUPINSKI - No, it is owned by the member banks.
CALLER - Are the member banks private corporations?
MR. SUPINSKI - Yes
CALLER - Are Federal Reserve Notes backed by anything?
MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by the
power of congress to lay tax on the people.
CALLER - Did you say, by the power to collect taxes is what backs Federal
Reserve Notes?
MR. SUPINSKI - Yes
CALLER - What are the total assets of the Federal Reserve?
MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.
CALLER - What are these assets composed of?
MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government
securities.
CALLER - What value does the Federal Reserve Bank carry gold per oz. on
their books?
MR. SUPINSKI - I don't have that information but the San Francisco Bank has
$1.6 billion in gold.
CALLER - Are you saying the Federal Reserve Bank of San Francisco has $1.6
billion in gold, the bank itself and the balance of the assets is government
securities?
MR. SUPINSKI - Yes.
CALLER - Where does the Federal Reserve get Federal Reserve Notes from?
MR. SUPINSKI - They are authorized by the Treasury.
CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve
Note?
MR. SUPINSKI - Fifty to seventy cents.
CALLER - How much do they pay for a $100.00 Federal Reserve Note?
MR. SUPINSKI - The same fifty to seventy cents.
CALLER - To pay only fifty cents for a $100.00 is a tremendous gain, isn't it?
MR. SUPINSKI - Yes
CALLER - According to the US Treasury, the Federal Reserve pays $20.60 per
1,000 denomination or a little over two cents for a $100.00 bill, is that correct?
MR. SUPINSKI - That is probably close.
CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that cost
about two cents each to purchase US Bonds from the government?
MR. SUPINSKI - Yes, but there is more to it than that.
CALLER - Basically, that is what happens?
MR. SUPINSKI - Yes, basically you are correct.
CALLER - How many Federal Reserve Notes are in circulation?
MR. SUPINSKI - $263 billion and we can only account for a small percentage.
CALLER - Where did they go?
MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal drug
money.
CALLER - Since the debt is payable in Federal Reserve Notes, how can the $4
trillion national debt be paid-off with the total Federal Reserve Notes in
circulation?
MR. SUPINSKI - I don't know.
CALLER - If the Federal Government would collect every Federal Reserve Note
in circulation would it be mathematically possible to pay the $4 trillion national
debt?
MR. SUPINSKI - No
CALLER - Am I correct when I say, $1 deposited in a member bank $8 can be
lent out through Fractional Reserve Policy?
MR. SUPINSKI - About $7.
CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve
Notes were never put in circulation. But, for lack of better words were "created
out of thin air " in the form of credits and the two cents per denomination were
not paid either. In other words, the Federal Reserve Notes were not physically
printed but, in reality were created by a journal entry and lent at interest. Is that
correct?
MR. SUPINSKI - Yes
CALLER - Is that the reason there are only $263 billion Federal Reserve Notes
in circulation?
MR. SUPINSKI - That is part of the reason.
CALLER - Am I mistaking that when the Federal Reserve Act was passed (on
Christmas Eve) in 1913, it transferred the power to coin and issue our nation's
money and to regulate the value thereof from Congress to a Private corporation.
And my country now borrows what should be our own money from the Federal
Reserve (a private corporation) plus interest. Is that correct and the debt can
never be paid off under the current money system of country?
MR. SUPINSKI - Basically, yes.
CALLER - I smell a rat, do you?
MR. SUPINSKI - I am sorry, I can't answer that, I work here.
CALLER - Has the Federal Reserve ever been independently audited?
MR. SUPINSKI - We are audited.
CALLER - Why is there a current House Resolution 1486 calling for a complete
audit of the Federal Reserve by the GAO and why is the Federal Reserve
resisting?
MR. SUPINSKI - I don't know.
CALLER - Does the Federal Reserve regulate the value of Federal Reserve
Notes and interest rates?
MR. SUPINSKI - Yes
CALLER - Explain how the Federal Reserve System can be Constitutional if,
only the Congress of the US, which comprises of the Senate and the House of
representatives has the power to coin and issue our money supply and regulate
the value thereof? [Article 1 Section 1 and Section 8] Nowhere, in the
Constitution does it give Congress the power or authority to transfer any powers
granted under the Constitution to a private corporation or, does it?
MR. SUPINSKI - I am not an expert on constitutional law. I can refer you to our
legal department.
CALLER - I can tell you I have read the Constitution. It does NOT provide that
any power granted can be transferred to a private corporation. Doesn't it
specifically state, all other powers not granted are reserved to the States and to
the citizens? Does that mean to a private corporation?
MR. SUPINSKI - I don't think so, but we were created by Congress.
CALLER - Would you agree it is our country and it should be our money as
provided by our Constitution?
MR. SUPINSKI - I understand what you are saying.
CALLER - Why should we borrow our own money from a private consortium of
bankers? Isn't this why we had a revolution, created a separate sovereign nation
and a Bill of Rights?
MR. SUPINSKI - (Declined to answer).
CALLER - Has the Federal Reserve ever been declared constitutional by the
Supreme Court?
MR. SUPINSKI - I believe there has been court cases on the matter.
CALLER - Have there been Supreme Court Cases?
MR. SUPINSKI - I think so, but I am not sure.
CALLER - Didn't the Supreme Court declare unanimously in A.L.A. Schechter
Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state
arrangement an unconstitutional delegation of legislative power? ["The power
conferred is the power to regulate. This is legislative delegation in its most
obnoxious form; for it is not even delegation to an official or an official body,
presumptively disinterested, but to private persons." Carter vs. Carter Coal
Co...]
MR. SUPINSKI - I don't know, I can refer you to our legal department.
CALLER - Isn't the current money system a house of cards that must fall
because, the debt can mathematically never be paid-off?
MR. SUPINSKI - It appears that way. I can tell you have been looking into this
matter and are very knowledgeable. However, we do have a solution.
CALLER - What is the solution?
MR. SUPINSKI - The Debit Card.
CALLER - Do you mean under the EFT Act (Electronic Funds Transfer)? Isn't
that very frightening, when one considers the capabilities of computers? It would
provide the government and all it's agencies, including the Federal Reserve such
information as: You went to the gas station @ 2:30 and bought $10.00 of
unleaded gas @ $1.41 per gallon and then you went to the grocery store @ 2:58
and bought bread, lunch meat and milk for $12.32 and then went to the drug
store @ 3:30 and bought cold medicine for $5.62. In other words, they would
know where we go, when we went, how much we paid, how much the merchant
paid and how much profit he made. Under the EFT they will literally know
everything about us. Isn't that kind of scary?
MR. SUPINSKI - Yes, it makes you wonder.
CALLER - I smell a GIANT RAT that has overthrown my constitution. Aren't
we paying tribute in the form of income taxes to a consortium of private
bankers?
MR. SUPINSKI - I can't call it tribute, it is interest.
CALLER - Haven't all elected officials taken an oath of office to preserve and
defend the Constitution from enemies both foreign and domestic? Isn't the
Federal Reserve a domestic enemy?
MR. SUPINSKI - I can't say that.
CALLER - Our elected officials and members of the Federal Reserve are guilty
of aiding and abetting the overthrowing of my Constitution and that is treason.
Isn't the punishment of treason death?
MR. SUPINSKI - I believe so.
CALLER - Thank you for your time and information and if I may say so, I think
you should take the necessary steps to protect you and your family and withdraw
your money from the banks before the collapse, I am.
MR. SUPINSKI - It doesn't look good.
CALLER - May God have mercy on the souls who are behind this
unconstitutional and criminal act called the Federal Reserve. When the
ALMIGHTY MASS awakens to this giant hoax, they will not take it with a grain
of salt. It has been a pleasure talking to you and I thank you for your time. I
hope you will take my advice before it does collapse.
MR. SUPINSKI - Unfortunately, it does not look good.
CALLER - Have a good day and thanks for your time.
MR. SUPINSKI - Thanks for calling.

If the reader has any doubts to the validity of this conversation, call your nearest
Federal Reserve Bank, YOU KNOW THE QUESTIONS TO ASK! You won't
find them listed under the Federal Government. They are in the white pages,
along with Federal Express, Federal Deposit Insurance Corp. (FDIC), and any
other business. Find out for yourself if all this is true.

And then, go to your local law library and look up the case of Lewis vs. US, case
#80-5905, 9th Circuit, June 24, 1982. It reads in part: "Examining the
organization and function of the Federal Reserve Banks and applying the relevant
factors, we conclude that the federal reserve are NOT federal instrumentality's . .
but are independent and privately owned and controlled corporations - federal
reserve banks are listed neither as "wholly-owned' government corporations
[under 31 USC Section 846] nor as 'mixed ownership' corporations [under 31
USC Section 856] . . . 28 USC Sections 1346(b), 2671. '

Federal agency' is defined as: the executive departments, the military
departments, independent establishments of the United States, and corporations
acting primarily as instrumentality's of the United States, but does not include
any contractors with the United States . . . There are no sharp criteria for
determining whether an entity is a federal agency within the meaning of the Act,
but the critical factor is the existence of the federal government control over the
'detailed physical performance' and 'day to day operations' of that entity.

Other factors courts have considered include whether the entity is an independent
corporation . . . whether the government is involved in the entity's finances, . . .
and whether the mission of the entity furthers the policy of the United States . . .
Examining the organization and function of the Federal Reserve Banks, and
applying the relevant factors, we conclude that the Reserve Banks are not federal
instrumentalities ...

It is evident from the legislative history of the Federal Reserve Act that Congress
did not intend to give the federal government direction over the daily operation of
the Reserve Banks . . . The fact that the Federal Reserve Board regulates the
Reserve Banks does not make them federal agencies under the Act . . . Unlike
typical federal agencies, each bank is empowered to hire and fire employees at
will. Bank employees do not participate in the Civil Service Retirement System.
They are covered by worker's compensation insurance, purchased by the Bank,
rather than the Federal Employees Compensation Act.

Employees traveling on Bank business are not subject to federal travel
regulations and do not receive government employee discounts on lodging and
services . . . Finally, the Banks are empowered to sue and be sued in their own
name. 12 USC Section 341. They carry their own liability insurance and typically
process and handle their own claims . . ." According to the Federal Reserve Bank
of Philadelphia, "When the Federal Reserve was created, its stock was sold to
the member banks." ("The Hats The Federal Reserve Wears," published by the
Federal Reserve Bank of Philadelphia).

The original Stockholders of the Federal Reserve Banks in 1913 were the
Rockefeller's, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb,
Warburgs, Lehman Brothers and Goldman Sachs. The MONEYCHANGERS
wanted to be insured they had a monopoly over our money supply, so Congress
passed into law Title 12, Section 284 of the United States Code. Section 284
specifically states, "NO STOCK ALLOWED TO THE US" *

Monopoly - "A privilege or peculiar advantage vested in one or more persons or
companies, consisting in the exclusive right [or power] to carry on a particular
business or trade, manufacture a particular article, or control the sale of the
whole supply." ....