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Show chuddn si flew By Chuck Hayward An obscure justice of the peace in a small Midwest community is creating some restiveness among banking authorities because of an opinion handed down in connection with a real estate foreclosure. He agrees with the defendant in the case that America's money is no good. More specifically, the justice, Martin V. Mahoney, Credit River Township, Scott County, Minnesota, has ruled that the Federal Reserve Notes of the U.S. are unlawful and void. Justice Mahoney's contention identifies with the question of whether a bank operating as an individual unit (die Fed banks and the national banks have been owned since 1913) can legally bring out a monetary instrument with which to discharge debt obligations when the state cannot. privately Jerome Daly, an attorney in Savage, Minn., representing himself, was the central figure opposing a Minnesota bank in the case, which resulted in a jury trial presided over by Mahoney and which led to Mahoney's opinion supporting jury findings in favor of Daly. Mahoney pointed out that the Federal Reserve banks and national banks create money and credit upon their books by bookkeeping entry when the acquire U.S. bonds and securities, state bonds and securities, mortgages on private real property and mortgages on private personal property. The first time the money comes into existence is when they create it on their bank books by bookkeeping entry, noted Mahoney. The banks create it out of nothing. No substantial fund of gold or silver is back of it, or any fund at all.' implication of Mahoney's ruling is of gold and silver's role in the money system perpetuation as provided for in the Constitution, placing something of relatively substantial intrinsic worth behind, or redeemable for, created money. Neither gold nor silver, since March 18, 1968, has backed up Federal Reserve Notes, Mahoney The obvious notes. In turning down an appeal after the case moved from 1968 into 1969, Mahoney commented as follows in reference to two Federal Reserve Notes involved in a payment: The Federal Reserve Notes in question in this case (issued by San Francisco and Minneapolis banks) are unlawful and void upon the following grounds: A. Said notes are fiat money, not redeemable in gold or silver coin upon their face, not backed by gold or silver, and the notes are in want of some real or substantial fund being provided for their payment in redemption. There is no mode provided for enforcing the payment of the same. There is no mode provided for the enforcement of the payment of the notes in anything of value. B. The notes obviously are not gold or silver coin... The justice elaborated further in his opinion, including a contention that part of the United States Code is unconstitutional insofar as it attempts to make Federal Reserve Notes and circulating notes of Federal Reserve banks and national banking associations a legal tender for all debts, public and private. Article 1, Section 10 of the Constitution of the United States reads as follows: No state shall enter into any treaty, alliance or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility. Constitutional amendment may be necessary, to resolve the matter, according to attorney ultimately, Daly. A July 21, 1969 OIL & MINING JOURNAL Page 6 Tintic Mineral Ohio well Robert A. Hunt, president of Tintic Mineral Resources, Inc., announced to Tintic shareholders at their annual meeting the completion of the Fieldson No. 1, the company's first oil and gas well. The new discovery, in Wheeling Township, Guernsey County, Ohio, rated at more than one million cubic feet of gas per and day an undertermined amount of oil, Mr. Hunt said. Production is from the Clinton Formation. Mr. Hunt said Tintic has acquired about 4,000 acres in Guernsey County, situated on East Ohio Gas Company's new million $2.5 line gas being constructed to gather production from this intensely active gas and oil development area. The company plans to drill five Ohio wells in 1969 and is presently drilling an offset to the Fieldson well, the Gladys which is No.l, McMurray expected to be completed within 10 to 14 days. The first Tintic well is within 100 feet of the pipeline and expected to be on stream within 30 days, according to Hunt. A gas contract has been signed with East Ohio Gas Company for all production from Tintic acreage at $.28 per 1,000 cubic feet plus additional compensation for transportation. Oil is sold FOB wellhead at from $3.17 to $3.73 per barrel, depending on the buyer. A contract to move the concentrator . and hydrometallurgical plant owned by Tintic has been let, and excavation and grading begun at Frisco, Utah, Hunt said. Ore is being stockpiled at the mill from the Horn Silver Mine for treatment. Hunt said exploration drilling in Nevada is continuing under a joint venture arrangement with Basin & Range Exploration Company Minerals, and Westland Salt Lake based companies. Rosario Exploration Co. is diamond drilling a series of deep holes below the 600 ft. level of the Cactus Mine, Hunt said. Rosario has elected to exercise their option 133,333 shares to purchase of Tintic stock. Gen. International in Butterfly Mine General International Corp., formerly General Contracting Corp., has announced several acquisitions, including an additional interest in a joint venture on the Butterfly Mine of Ophir, Colo. Claude S. Birtle, president, also announced that General approved acquisition of International has acquired the subdivision property valued at Assurance and Surety Co., S. A., $1.2 million in Elsinore, a Swiss surplus line insurance - California, firm with assets in Mexico, Birtle said the firm is Uruguay, the U. S. and Switzerland. negotiating other acquisitions in At a recent stockholders' mining, insurance and land the meeting, company also development. Restrictions hamstring undersea hunt MIAMI FLORID A-De- BEACH, talk to the spite contrary, vague laws inadequate equipment made 'a industry,' undersea high-co- high-ris- k, and have mining st incapable of producing many minerals for years to come, federal researchers said. While marine mining is more than 60 years old, technology has been developed in shallow waters 250 to 300 feet deep. Deep-wattechnology, even for exploration, has not been satisfactorily demonstrated,' said Carolita Unman and Matt several hundred feet. Despite undersea those miners producing high-price- d in greater quantity 'within five years because potential return is Interior Department's Bureau of Land Management. A review of the economic aspects has suggested a high-rishigh-coindustry which will likely need added inducements in order to move it from its present embryonic state,' they said in a technical paper at the Marine Technology Society's annual conference. Their views were matched in k, Meribeth Ilandsman, researchers. O.T.C. Stocks Listed Securities Mutual Funds Term Life Insurance (801) 328-487- 1 par&e1 - jJac&Aon - 9?iawt, 150 South 6th East Suite 2c Mnmbari Philodelphia 9 nc. Salt Lake City, Utah 84102 Baltimore Wattling ton Stock Exchange st another paper by two other researchers from the same bureau, who also predicted a gloomy future for undersea mining until numerous technical and legal problems are resolved. Among the difficulties cited . were: -- Lack of any international agreement over who has legal jurisdiction of the sea floor outside a nation's territorial limits. -- Except for petroleum and gas, data does not exist that shows the location, shape and character of mineral deposits. --Inadequate equipment to find and mine minerals in the sea, especially at depths of BLM Complete Financial Planning er Cushner of the problems, will begin minerals so great in relation to investment as to entice producers offshore where deposits are known, predicted Alvin Kauffman and INVESTMENT SECURITIES SCHOOL Outstanding Securities Training which assists in meeting requirements for NASD Principal AND Registered Representative, SECO and STATE exams. Classes: for Registered Representatives 26, 27 August 29, 30, 31 July 25, Classes held from 9 Review sessions a.m.-- 5 pjn. daily 7:30-10:0- 0 pj For Information! Phene: (303) 7447137 or Write Investment Securities Scheel Mr. A. K. 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