What is this? This is a true story about Jerome Daly taking on the banks, the Federal Reserve Banking System, and the money lenders, and winning the lawsuit.

Results of lawsuit:

  a Minnesota Trial Court's decision holding the Federal Reserve Act unconstitutional and VOID;
  holding the National Banking Act unconstitutional and VOID;
  declaring a mortgage acquired by the First National Bank of Montgomery, Minnesota in the regular course of its business, along with the foreclosure and the sheriff's sale, to be VOID.

Jerome Daly had a mortgage with the First National Bank of Montgomery, Minnesota. In Spring 1967, he was $476.00 in arrears, the bank foreclosed and bought the property at a Sheriff's sale on June 26, 1967. The bank sued for possession and in a jury trial, presided over by Martin V. Mahoney, Justice of the Peace, Credit River Township, Scott County, Minnesota, was held on December 7, 1968.

Landmark Minnesota case: First national bank of Montgomery vs. Daly (1969) was a courtroom drama worthy of a movie script. Defendant Jerome Daly opposed the bank’s foreclosure on his $14,000 home mortgage loan on the ground that there was no consideration for the loan. Daly, an attorney representing himself, argued that the bank had put up no real money for his loan. Associate Justice Bill Drexler recorded the courtroom proceedings; he said his role was to keep order in the courtroom. Drexler had not given much mental acceptance for defense and watching this The Bank President Mr. Morgan took a stand and admitted that the banks routinely created money for loans and that this was standard banking practice. Presiding Justice Martin Mahoney and the jurors all agreed that it seemed like a fraud.  Dollar deception: Minnesota lawsuit

In his court memorandum, Justice Mahoney stated: 

“Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, . . . did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.”  Dollar deception: Minnesota lawsuit

The defendant won this case and he kept his house. To Daly, the implications were enormous. If it was true that bankers were extending the credits without consideration. It was great defeat for them, as their loans could be declared void in the decision. Daly wrote in a local news article that:

“This decision, which is legally sound, has the effect of declaring all private mortgages on real and personal property, and all U.S. and State bonds held by the Federal Reserve, National and State banks to be null and void. This amounts to an emancipation of this Nation from personal, national and state debt purportedly owed to this banking system. Every American owes it to himself . . . to study this decision very carefully . . . for upon it hangs the question of freedom or slavery.”  Dollar deception: Minnesota lawsuit

The decision that was made has not been implemented at all. Although at that time judges and courts were not dependants. After exposing this secret of banks Justice Mahoney lived for less then six months and in mysterious accident that appeared to involve poisoning he died. Since that time a number of defendants are attempting to avoid loan defaults using the defense that Daly raised; but they have met with only limited success. As one judge said off the record:

“If I let you do that – you and everyone else – it would bring the whole system down . . .. I cannot let you go behind the bar of the bank . . .. We are not going behind that curtain!”   Dollar deception: Minnesota lawsuit

Below is a short video about this lawsuit:

Importance of this decision:  This decision, which is legally sound, has the effect of declaring all private mortgages on real and personal property, and all U.S. and State bonds held by the Federal Reserve, National and State Banks to be null and VOID. This amounts to an emancipation of this nation from personal, national and State debt purportedly owed to this banking system. Every American owes it to himself/herself, to his or her country, and to the people of the world for that matter, to study this decision very carefully and to understand it, for upon it hangs the question of freedom or slavery.

References:

Daly Jerome, "Affidavit" First National Bank of Montgomery vs Daly. December 01, 1969.   Daly: Affidavit

"Dollar Deception: How Banks Secretly Create Money," Fair Loan Bank, May 01, 2009. Dollar deception: Minnesota lawsuit

Drexler Bill, "The most important legal decision ever decided," Feb 5, 2005.  Drexler: Minnesota legal decision