Appendix I: Notice to 50 Governors

        TO:       Friends, Neighbors, Colleagues 
                  and all interested parties 
        FROM:     Mitch Modeleski, Founder 
                  Account for Better Citizenship 
        DATE:     September 10, 1991 
        SUBJECT:  Enclosed Letter to 50 State Governors 
             Enclosed please find a copy of our letter and attachments to 
        the 50 Governors of the sovereign States of the Union. 
             With this letter, we place these 50 Governors on notice that 
        a great  fraud and deception have been fastened upon the American 
             This fraud  and deception are the result of a private credit 
        monopoly (the  Federal  Reserve  System)  and  a  repressive  and 
        confiscatory taxing syndicate (the Internal Revenue Service) that 
        have been imposed upon us without our consent. 
             We  petition   the  Governors   to  understand   that  heavy 
        government borrowing and excessive taxation go hand-in-hand, that 
        a foreign  jurisdiction has  obtained control of money and credit 
        in America,  and  that  the  situation  is  now  so  serious,  it 
        threatens  systematically   to  corrupt   and  destroy  the  very 
        foundations of our modern civilization. 
             Help us  to assist the Governors to understand that Congress 
        has seized vast powers from the States for the federal government 
        by means  of gross  deficit spending, heavy government borrowing, 
        and unlawful  delegation of  monetary powers to a private banking 
             Help us  to abolish  the specter of modern slavery which now 
        threatens to destroy the essential rights and freedoms which made 
        this a great nation and the envy of others around the world. 
             Please  join  us  in  demanding  the  50  Governors  to  act 
        decisively in  accordance with  their solemn  oath of office:  to 
        uphold and  defend the Constitution of the United States from all 
        enemies, both foreign and domestic. 
             Help us to restore a government which has drifted so far off 
        course, it  hardly resembles  the constitutional  republic it was 
        designed to be. 
        Account for Better Citizenship 
        c/o USPS P. O. Box 6189 
        San Rafael, California Republic 
        Postal Code 94903-0189/TDC 

                         Account for Better Citizenship 
                          c/o USPS Post Office Box 6189 
                         San Rafael, California Republic 
                           Postal Code 94903-0189/TDC 
        Governor                                                   [date] 
        Office of the Governor 
        State Capitol 
        City, State 
        Dear Governor           : 
             We are  writing in order to notify you formally that a great 
        fraud and  deception have  been fastened  upon the people of your 
        State.   In so  doing, we  place you  on notice of this fraud and 
        deception, and  request that  you exercise  your solemn  oath  of 
        office to uphold and defend the Constitution of the United States 
        and the rights of the people. 
             Our forefathers  waged the  War  of  Independence,  suffered 
        enormous sacrifices,  and even  gave their  lives  to  sever  our 
        nation from  an unlawful jurisdiction imposed on them by the King 
        of England.   This  jurisdiction is  known as Admiralty Law.  Its 
        primary beneficiary  is the  Federal Reserve  System,  a  private 
        credit monopoly  once described  by Congressman Louis T. McFadden 
        as "one  of the  most corrupt  institutions the  world  has  ever 
        known".   Congressman McFadden  was Chairman of the House Banking 
        and Currency Committee from 1927 to 1933. 
             By utter  deceit and  a failure  to abide by the mandates of 
        the U.S.  Constitution, our  lawmakers  have  imposed  this  same 
        unlawful jurisdiction  back upon  the  people.    This  was  done 
        through  the   chicanery  and   great  pressure  applied  by  the 
        international banking  community, whose  aim has  always been  to 
        control the  issuance of  money and credit.  Foremost among these 
        bankers was Mayer Amschel Rothschild who stated, 
             "Permit me to issue and control the money of a nation, and I 
             care not who makes the laws." 
             We are  now in  an undeclared economic war, and the enemy is 
             If the people of this nation had not been raped by the great 
        banking cartels, we would have no poor or homeless in our nation; 
        to quote  an editorial  in the  London Times in 1865, we would by 
        now have become: 
             "... prosperous  beyond precedent  in  the  history  of  the 
             civilized governments of the world." 
             This same editorial went on to predict that our nation would 
        pay off  its debts  and be without a debt.  It would have all the 
        money necessary  to carry on its commerce.  The brains and wealth 
        of all  countries would  go to North America.  For these reasons, 
        the London  Times urged  that our  government be destroyed, or it 
        would destroy every monarchy on the globe! 
             American history  reveals that Benjamin Franklin traveled to 
        England as  a  representative  of  the  Colonies.    The  British 
        officials there  asked how it was the Colonies managed to collect 
        enough taxes  to build  poor houses,  and how  they handled  this 
        terrible burden  of caring  for the  poor.   Franklin's reply was 
        simple and direct: 
             "We have  no poor  houses in the Colonies, and if we had, we 
             would have  no one  to put in them, as in the Colonies there 
             is not a single unemployed man, no poor and no vagabonds." 
        He went on to explain the underlying reason for this: 
             "It is because in the Colonies we issue our own paper money. 
             We call it Colonial Script, and we issue only enough to move 
             all goods  freely from  the producers to the Consumers;  and 
             as we  create our  money, we control the purchasing power of 
             money, and have no interest to pay." 
             As Franklin  knew so  well, this  system  guarantees  honest 
        money.   There would  be no  need for  inflation or deflation, as 
        long as  the money supply was kept equal to the value of goods to 
        be moved. 
             Contrast this  condition to  that of England:  all her money 
        was borrowed  from banks, and repressive taxes were laid upon the 
        people.   Banks usurped  the government's  right  to  create  and 
        regulate money.  Banks created money or credit "out of thin air", 
        by mere  bookkeeping entries, with no labor or wealth involved or 
             Today, we  suffer from  the same  debt money  system here in 
        America.     As  a   result,  the   nation's  wealth   is   being 
        systematically transferred  from  a  nation  of  producers  to  a 
        syndicate of lenders, who have done nothing in any way to earn it 
        or warrant it. 
             Why should  the people  pay  tribute  to  a  private  credit 
        monopoly for  the benefit  of using  their own money?  The people 
        retain an  unalienable  right  to  create  their  own  medium  of 
        exchange, through  their elected  representatives in the Congress 
        of the United States, as mandated by the Constitution.  When this 
        right was  challenged by  the British, the Colonists went to war. 
        Benjamin Franklin  identified this as the real reason for the War 
        of Independence: 
             "The Colonies  would gladly have borne the little tax on tea 
             and other  matters, had  it not  been that England took away 
             from the  Colonies their  money, which  created unemployment 
             and dissatisfaction." 
             We believe  that President  Abraham Lincoln was assassinated 
        for his creation of "United States Notes", and for his refusal to 
        borrow debt money from banks.  Lincoln was quoted to say: 
             "The people  can and  will be  furnished with  a currency as 
             safe as their own Government.  Money will cease to be master 
             and become  the servant  of humanity.   Democracy  will rise 
             superior to the money power." 
        Governor, with  your help,  and with  the grace  of God, this can 
        still happen. 
             Governor, we  expect you  to understand  that debt money and 
        excessive taxes  go hand-in-hand.    Today,  Americans  pay  over 
        10,000  PERCENT  more  in  taxes  than  did  Colonial  Americans. 
        Federal income  taxes are  confiscated under  duress, even though 
        they are  voluntary under  law, and  apply  only  to  persons  in 
        federal enclaves or possessions. 
             The framers made it plain that "No money shall be drawn from 
        the Treasury  but in  consequence of  appropriations made by Law" 
        (Article I,  Section 9, Clause 7).  Nevertheless, a philosophy of 
        "tax, tax;   spend,  spend;  elect, elect" began in the Roosevelt 
        era when  the U.S. Supreme Court relaxed traditional restrictions 
        on the Federal Government in the Butler case (297 US 1, 1936). 
             In this  case, the  Court interpreted  the "general welfare" 
        clause as  a general  grant of power to Congress to tax and spend 
        for anything it felt was in the interest of the nation's welfare. 
        This ruling  opened the  U.S. Treasury  to unlimited  looting  by 
        politicians who  saw this  as a  golden opportunity  to  increase 
        taxes and  buy votes  with federally  funded  projects  in  their 
        respective States.   A  massive share of this funding is now done 
        through heavy government borrowing! 
             Governor, if  this situation  is not changed, the destiny of 
        our nation is literally in the hands of international bankers and 
        their  cohorts.     As  German  statesman  and  soldier  Bismarck 
             "The death of Lincoln was a disaster for Christendom ....  I 
             fear that foreign bankers with their craftiness and tortuous 
             tricks will entirely control the exuberant riches of America 
             and use  them systematically to corrupt modern civilization. 
             They will  not hesitate  to plunge  the whole of Christendom 
             into wars  and chaos  in order  that the  earth shall become 
             their inheritance." 
             For our own sake, and for the sake of our posterity, we pray 
        that you  will be earnest in your endeavor to help set our nation 
        aright.  Honor your oath of office, so that your constituents and 
        our Creator  may properly  show you respect, and that you too may 
        proclaim, with Benjamin Franklin: 
             "I can appear cheerfully before God fearing nothing from His 
             justice in this particular." 
             Governor, join  us to  help restore  the laws  and liberties 
        that our  founding fathers fought so hard to win and leave to us, 
        their posterity. 
             Please take  the time  necessary  to  study  personally  the 
        material enclosed  with this  letter.  It summarizes the fraud we 
        now suffer,  from a  private credit  monopoly and  a confiscatory 
        taxing syndicate imposed upon us without our consent. 
             Then, honor  us by acting decisively in accordance with your 
        solemn oath  of office:  to uphold and defend the Constitution of 
        the United States from all enemies, both foreign and domestic, so 
        help you God. 
        Yours for liberty and justice, 
        /s/ Mitch Modeleski, Founder                    /s/ Leigh Waddell 
        Account for Better Citizenship                  Secretary 
              Graph of U.S. National Debt 
             'Why, Pilgrim, Don't You Act?' 
             'Promises Made, Promises Broken' 
             'How It All Began' 
             'The Rothschild-Hamilton Money and Banking System' 
             'The Lost Document' 
             'What You Should Know About the Federal Reserve System' 
              Letter to 60 Minutes, by Mitch Modeleski, 5/29/91 
              Letter to 60 Minutes, by Godfrey Lehman, 5/21/91 
              Letter to Prof. Louis Roseman, by Mitch Modeleski, 5/2/91 
             'The Two United States and the Law,' by Howard Freeman 
             '$10,000 Reward' 
              Selected Bibliography 
             A Moderate Proposal for Restoring Prosperity 
             Individual and National, by Jean Carpenter 

Why, Pilgrim, Don't You Act?

an excerpt from the book Tax Scam, by Alan Stang:

"As you know, the Constitution reserves the power over money to the Congress, which power Congress is forbidden to delegate. How would you respond, were Congress illegally to give its power to a private corporation, like Ford or Xerox, or Occidental Petroleum or IBM, or a new corporation organized for the purpose? Suppose Congress confiscated your gold and gave it to that private corporation. Suppose that private corporation issued currency the government forced you to use, and on which it forced you to pay interest. Suppose that private corporation extended credit ('cheap money') and then called the loans; did so time after time, creating endless boom and bust; thereby farming the farmer and bringing the people to their knees -- protesting all the while in a blizzard of propaganda that it was fighting these things.

"How would you respond? Do we exaggerate when we speculate that you would call it the biggest scandal of all time? Are we far afield when we guess that you would demand a special prosecutor, complete with hearings, to expose the conspiracy; seizure of the corporation's assets and abolition of the corporation; long prison terms for the perpetrators, in government and out; and restoration to Congress of the money power, in obedience to the Constitution?

"Pilgrim, if that is close to what you would demand, may we ask respectfully why you have not demanded it -- because the private corporation we have been talking about is the Federal Reserve System.

[Alan Stang, Tax Scam, Research Publications, P.O. Box 84902,
Phoenix, Arizona 85071, 1988, pages 228-229]

Promises Made, Promises Broken

In promoting passage of the Federal Reserve Act of 1913, its sponsors, and those working to see it passed, made ten promises:

1. To operate entirely under the direction and control of the President and his appointees to the Board of Governors.

2. To pay interest to the government for the privilege of printing Federal Reserve Notes as the nation's currency.

3. To perform many banking services for the government free of charge.

4. To manage the nation's money supply so as to stabilize the dollar which, in turn, would stabilize prices.

5. To remove the United States from the control of Wall Street.

6. To prevent depressions and eliminate "boom and bust" cycles.

7. To be a friend and helper to farmers and to the monetary needs of small businesses.

8. To create a system that would remain forever decentralized, so each Federal Reserve Bank would have as much influence in monetary policies as the one in New York City.

9. To protect American interests against foreign monetary assaults.

10. To supervise and inspect local banks and provide funds when they were pressed by unexpected demands.

Contrary to promises, the effects of the Federal Reserve Act have been disastrous:

1. Judged by the promises at the time the act was passed, including a stable currency and elimination of boom and bust cycles, the Fed must be rated, at best, a colossal failure.

2. The Federal Reserve action of curtailing the nation's money supply by a third in 1929 converted a serious recession into a disastrous depression, destroying one-third of the nation's banks in the process.

3. Judged on the basis of the U.S. Constitution and by the intent of its framers, the Federal Reserve Act and amendments are clearly unconstitutional.

4. The present system, requiring people and businesses to pay interest to the banks on every Federal Reserve dollar in circulation, is a devastating and needless burden, adding to bankruptcies in a recession and severely hampering recovery. An Honest Money System, based on debt-free money, is essential to the economic well-being of the people all across the U.S.

5. An unstable national money supply is a debilitating handicap at best and, at worst, not only causes but worsens "boom or bust" business cycles so destructive of the people's best interests.

6. The people of America now suffer from needless recessions brought on by the cumulative effects of inflation and interest-bearing debt financing encouraged by the Federal Reserve System.

How It All Began

an excerpt from the book A Writ for Martyrs, by Eustace Mullins:

"The income tax amendment and the Federal Reserve Act were passed in the same year, 1913, because they function as an essential team, and were planned to do so. The Federal Reserve districts and the Internal Revenue Districts are "new states," which have been established within the jurisdictions of legal states of the Union. But why were they so established, and why are they co- functional? The Internal Revenue Service has the duty of collecting large amounts of taxes from employed Americans, solely as an agent of the Federal Reserve System. It was not accidental, nor was it coincidental, that these acts coincided with the preparations of World War I. The necessity for income tax "collections" did not become obvious for some years. The U.S. Congress had awarded the Federal Reserve System the power to issue money, despite the fact that the Federal Reserve bank stock was entirely owned by private stockholders. The Federal Reserve System then began to issue large amounts of profitable interest- bearing "U.S. dollars," without control from any government agency. It became apparent that the Federal Reserve System must set up its own system of controls, which it did through the Internal Revenue Service. Here again, the "Service" was not a service to the U.S. Government, nor a service to the American people. It was a service to the Federal Reserve System. The IRS performed the necessary task of "sopping up" the enormous amounts of money issued by the private stockholders of the Federal Reserve System to finance their systematic acquisition of all the property of the people of the United States.

"If these billions of paper instruments remained in continuous circulation, they would become mere assignats, not worth a Continental. The money is controlled by confiscatory taxation through the agency of the Internal Revenue Service. The system was laid down by David Ricardo, son of Abraham Israel, an Amsterdam stock manipulator who moved to England and made a fortune with the Rothschilds in the Waterloo speculations. Ricardo developed the technique of controlling the people through taxation. His direct descendant, Rita Ricardo Campbell, now advises President Reagan on Social Security.

"As the largely worthless paper assignats are forcibly removed from circulation by the zealous activities of the Internal Revenue Service, the Federal Reserve System can then issue more billions of paper currency to the public. The constant flow of "new money" deceives the public into thinking these assignats have real value.

"The IRS also fulfills Ricardo's dictum that the worker must never be allowed to enjoy more than a bare subsistence wage. Income tax, withholding tax, Social Security tax and other taxes fulfill Ricardo's dictum. With no money beyond bare subsistence, the workers are effectively prevented from engaging in political activity. In effect, the IRS functions as the slave overseer of the great American plantation, plying the lash freely in order to keep the workers bent to their tasks. However, neither the function of sopping up paper money for the Federal Reserve System nor the controlling of the workers by robbing them of their wages is a proper function of the United States Government."

[Eustace Mullins, A Writ for Martyrs, published by O.T.U. Christ
Church, P. O. Box 1105, Staunton, VA 24401, 1985, pages 190-191]

[ Next Appendix | Table of Contents ]