Chapter 9 References

Book I Bet You Thought by the Federal Reserve Bank of New York:

Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars to accounts on their books in exchange for a borrower's IOU.

Money, Banking and Monetary Policy, a book by the Federal Reserve Bank of Dallas:

Money makes it possible for people to exchange goods and services without having to rely on a system of bartering.

Banking provides a means for savers to lend their money to borrowers and earn interest in the process.

Banks actually “create” money when they lend it.

With reference to the word Value within Article 1, Section 8, Clause 5 of the Constitution: 

‘Words, especially those of a constitution, are not to be read with such stultifying narrowness.’

Quarterly Bulletins from 2014 Q1:

Rather than banks lending out deposits that are placed with them, the act of lending creates deposits… the reverse of the sequence typically described in textbooks.

That money is destroyed when loans are repaid:

The government is no longer in debt when it receives back its IOU, so it burns it.

Still today… when the government receives tax dollars they are destroyed. [and] That’s the nature of IOUs, when they come back to the issuer, they are just destroyed.

Martin v. Hunter's Lessee, 14 U.S. 304 (1816) relative to the interpretation of the Consitution:

The government, then, of the United States can claim no powers which are not granted to it by the Constitution, and the powers actually granted, must be such as are expressly given, or given by necessary implication. On the other hand, this instrument, like every other grant, is to have a reasonable construction, according to the import of its terms, and where a power is expressly given in general terms, it is not to be restrained to particular cases unless that construction grow out of the context expressly or by necessary implication. The words are to be taken in their natural and obvious sense, and not in a sense unreasonably restricted or enlarged.

Was government granted the power to restrict the definition of the word ‘Value’ within Art. 1 §8 Cl.5 to benefit bankers at the exclusion of the people? Would that be an ‘unreasonable restriction’? Is the word ‘Value’ - in its natural and obvious sense meant to benefit the people, not exclusively bankers? Cross reference with President Andrew Jackson's scathing criticism on 'necessary' in his veto of the Bank Bill in 1832. 

In Lake County v. Rollins, 130 U.S. 662 (1889), with reference to the intent of the Framers when reading the Constitution:

We are unable to adopt the constructive interpolations ingeniously offered by counsel for defendant in error. Why not assume that the framers of the constitution, and the people who voted it into existence, meant exactly what it says? At the first glance, its reading produces no impression of doubt as to the meaning. It seems all sufficiently plain, and in such case there is a well settled rule which we must observe. The object of construction, applied to a constitution, is to give effect to the intent of its framers and of the people in adopting it. This intent is to be found in the instrument itself, and when the text of a constitutional provision is not ambiguous, the courts, in giving construction thereto, are not at liberty to search for its meaning beyond the instrument.

Alexander Hamilton, one of the founders and signators to the Constitution wrote in what would become the Federalist Papers:

The assiduous merchant, the laborious husbandman, the active mechanic, and the industrious manufacturer, all orders of men look forward with eager expectation and growing alacrity to this pleasing reward of their toils.

This in reference to receiving money in exchange for hard work. 

Could that which procures a free vent for the products of the earth—which furnishes new incitements to the cultivators of land—which is the most powerful instrument in encreasing the quantity of money in a state—could that, in fine, which is the faithful handmaid of labor and industry in every shape, fail to augment the value of that article, which is the prolific parent of far the greatest part of the objects upon which they are exerted?

This in reference to the creation of value. 

Clause 6 provides for the punishment on Counterfeiting:

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

And the Annotated Constitution provides further detail on the power and obligation of Congress to preserve and protect...

the power of Congress to coin money includes “the correspondent and necessary power and obligation to protect and to preserve in its purity this constitutional currency for the benefit of the nation.

Congressman Usher Lloyd Burdick referenced HR 217 to restore the power to Congress:

House Resolution 217 - Restore to Congress the power to coin money and regulate the value thereof.

Warning from Congressional Patman in 1941

I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this congress for sitting idly by and permitting such an idiotic system to continue. I make that statement after years of study.

I have talked to the Secretary of the Treasury and members of the Federal Reserve Board and other people who are supposed to know about the money system of our country. They know this can be done easily and conveniently.