Special Report by Dr. Eugene Schroder

National Banking Emergency

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Introduction

We are going to begin with a series of documents which are representative (Exhibits 1 through 7), of the documents contained in this Report. We will be quoting from, in many cases, reports, Senate and Congressional reports, hearings before National Emergency Committees, Presidential Papers, Statutes at Large, and the United States Code.

Exhibit 8 is taken from a book written by Swisher called Constitutional Development. Let’s read the first paragraph. It says,

“We may well wonder in view of the precedents now established,” said Charles E. Hughes, (Supreme Court Justice) in 1920, “whether constitutional government as heretofore maintained in this Republic could survive another great war even victoriously waged.”

How could that happen? Surely, if we go out and fight a war and win it, we’d have to end up stronger than the day we started, wouldn’t we? Justice Hughes goes on to say,

“The conflict known as the World War had ended as far as military hostilities were

concerned, but was not yet officially terminated. Most of the war statutes were still in effect, many of the emergency organizations were still in operation.”

What is this man talking about when he speaks of “war statutes in effect and emergency organizations still in operation”?

In 1933 (Exhibit 9), Congressman Beck, speaking from the Congressional Record, states,

“I think of all the damnable heresies that have ever been suggested in connection with the Constitution, the doctrine of emergency is the worst. It means that when Congress declares an emergency, there is no Constitution. This means its death. It is the very doctrine that the German chancellor is invoking today in the dying hours of the parliamentary body of the German republic, namely, that because of an emergency, it should grant to the German chancellor absolute power to pass any law, even though the law contradicts the Constitution of the German republic. Chancellor Hitler is at least frank about it. We pay the Constitution

lip-service, but the result is the same.”

Congressman Beck is saying that, of all the damnable heresies that ever existed, this doctrine of emergency has got to be the worst, because once Congress declares an emergency, there is no Constitution.

He goes on to say, “But the Constitution of the United States, as a restraining influence in keeping the federal government within the carefully prescribed channels of power, is moribund, if not dead. We are witnessing its death-agonies, for when this bill becomes a law, if unhappily it becomes a law, there is no longer any workable Constitution to keep the Congress within the limits of its Constitutional powers.”

What bill is Congressman Beck talking about? In 1933, “the House passed the Farm Bill by a vote of more than three to one.” Again, we see the doctrine of emergency. Once an emergency is declared, there is no Constitution.

The cause and effect of the doctrine of emergency is the subject of this Report.

Now, what does this mean? It means that everything the President or the Secretary of the Treasury has done since March the 4th of 1933, or anything that the President or the Secretary of the Treasury is hereafter going to do, is automatically approved and confirmed. Referring back to Exhibit 10, let us remember that, according to the Congressional Record of 1973, the United States has been in a state of national emergency since 1933. Then we realize that 12 USC, Section 95 (b) is current law. This is the law that exists over this United States right this moment.

If that be the case, let us see if we can understand what is being said here. As every action, rule or law put into effect by the President or the Secretary of the Treasury since March the 4th of 1933 has or will be confirmed and approved, let us determine the significance of that date in history. What happened on March the 4th of 1933?

“The actions, regulations, rules, licenses, orders and proclamations heretofore or hereafter taken, promulgated, made, or issued by the President of the United States or the Secretary of the Treasury since March the 4th, 1933, pursuant to the authority conferred by Subsection (b) of Section 5 of the Act of October 6th, 1917, as amended [12 USCS Sec. 95a], are hereby approved and confirmed. (Mar. 9, 1933, c. 1, Title 1, Sec. 1, 48 Stat. 1.)”.

On March the 4th of 1933, Franklin Delano Roosevelt was inaugurated as President of the United States. Referring to his inaugural address, which was given at a time when the country was in the throes of the Great Depression, we read (Exhibit 16):

“I am prepared under my constitutional duty to recommend the measures that a stricken nation in the midst of a stricken world may require. These measures, or such other measures as the Congress may build out of its experience and wisdom, I shall seek, within my constitutional authority, to bring to speedy adoption. But in the event that the Congress shall fail to take one of these two courses, and in the event that the national emergency is still critical, I shall not evade the clear course of duty that will then confront me. I shall ask the Congress for the one remaining instrument to meet the crisis — broad Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe.”

On March the 4th, 1933, at his inaugural, President Roosevelt was saying that he was going to ask Congress for the extraordinary authority available to him under the War Powers Act. Let’s see if he got it.

On March the 5th, President Roosevelt asked for a special and extraordinary session of Congress in Proclamation 2038. He called for the special session of Congress to meet on March the 9th at noon. And at that Congress, he presented a bill, an Act, to provide for relief in the existing national emergency in banking and for other purposes.

Whatever is Good For The Soul ….

Do That!

In the enabling portion of that Act it states:

“Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, That the Congress hereby declares that a serious emergency exists and that it is imperatively necessary speedily to put into effect remedies of uniform national application.”

What is the concept of the rule of necessity, referred to in the enabling portion of the Act as “imperatively necessary speedily”? The rule of necessity is a rule of law which states that necessity knows no law. A good example of the rule of necessity would be the concept of self-defense. The law says, “Thou shalt not kill”. But also know that, if you are in dire danger, in danger of losing your life, then you have the absolute right of self-defense. You have the right to kill to protect your own life. That is the ultimate rule of necessity.

Thus we see that the rule of necessity overrides all other law, and, in fact, allows one to do that which would normally be against the law. So it is reasonable to assume that the wording of the enabling portion of the Act of March 9, 1933, is an indication that what follows is something which will probably be against the law. It will probably be against the Constitution of the United States, or it would not require that the rule of necessity be invoked to enact it.

In the Act of March 9, 1933 (Exhibit 17), it further states in Title 1, Section 1:

“The actions, regulations, rules, licenses, orders and proclamations heretofore or hereafter taken, promulgated, made, or issued by the President of the United States or the Secretary of the Treasury since March the 4th, 1933, pursuant to the authority conferred by subdivision (b) of Section 5 of the Act of October 6, 1917, as amended, are hereby approved and confirmed.”

Where have we read those words before?

This is the exact same wording as is found (Exhibit 15) today in Title 12, USC 95 (b). The language in Title 12, USC 95 (b) is exactly the same as that found in the Act of March 9, 1933, Chapter 1, Title 1, Section 48, Statute 1. The Act of March 9, 1933, is still in full force and effect today. We are still under the Rule of Necessity. We are still in a declared state of national emergency, a state of emergency which has existed, uninterrupted, since 1933, or for over sixty years.

There is No Force On Earth That Can Stop An Idea Whose Time Has Come!

As you may remember, the authority to do this is conferred by Subsection (b) of Section 5 of the Act of October 6, 1917, as amended. What was the authority which was used to declare and enact the emergency in this Act? If we look at the Act of October 6, 1917 (Exhibit 18), we see that at the top right-hand part of the page, it states that this was:

“An Act To define, regulate, and punish trading with the enemy, and for other purposes.

By the year 1917, the United States was involved in World War I; at that point, it was recognized that there were probably enemies of the United States, or allies of enemies of the United States, living within the continental borders of our nation in a time of war.

Therefore, Congress passed this Act which identified who could be declared enemies of the United States, and, in this Act, we gave the government total authority over those enemies to do with as it saw fit. We also see, however, in Section 2, Subdivision (c) in the middle, and again at the bottom of the page: “other than citizens of the United States.”

The Act specifically excluded citizens of the United States, because we realized in 1917 that the citizens of the United States were not enemies. Thus, we were excluded from the war powers over enemies in this Act.

1933 Emergency Declared

In 1973, in Senate Report 93-549 (Exhibit 10), the first sentence reads,

“Since March the 9th, 1933, the United States has been in a state of declared national emergency.”

Let’s go back to Exhibit 9 just before this. What did that say? It says that if a national emergency is declared, there is no Constitution. Now, let us return to Exhibit 10. Since March the 9th of 1933, the United States has been, in fact, in a state of declared national emergency.

Referring to the middle of this exhibit:

“This vast range of powers, taken together, confer enough authority to rule the country without reference to normal constitutional processes. Under the powers delegated by these statutes, the President may: seize property; organize and control the means of production; seize commodities; assign military forces abroad; institute martial law; seize and control all transportation and communication; regulate the operation of private enterprise; restrict travel; and, in a plethora of particular ways, control the lives of all American citizens” and this situation has continued uninterrupted since March the 9th of 1933.

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