Certified/Registered Mail Number:

SILVER-INDEXED BOND: This silver-indexed bond is a "specialty" executed under testation on indenture for redemption at term [full
settlement of the "account stated"] with "lawful money of account" or other funds at par with or equal to the price of silver for a specified number
of ounces, by specific weight and fineness, according to law, twenty one ["21" each at a ratio of 15 to 1, silver over gold] ounces, or by physical
delivery and seizen of a specified number of ounces of silver, on demand, or minted and coined "dollars" of the United States of America, at
parity; or, in the case of any alleged hypothecation [pledge or pignus] in rem or in personam, arrest or attachment, or other public official's public
delict or breach of trust, in original organic venue and jurisdiction set forth below, constituting a maritime lien for non-judicial attachment and
forfeiture, or common law indebitatus assumptsit, by explicit reservation by surety for exoneration, indemnification and/or reimbursement,
hereinafter more fully set forth.

Silver Bond Number 000010

Date: C.E. 25 March, 2008

Issuer: Kenneth Ray: of the family Nicholson
Holder: ________________________
Account Stated: 091-56-6891

Jus Sanguinis, at or near dwelling

T21S, R60E, Sect. 18
ss: Las Vegas Township
Nevada state/territory
united states of America, republics

Indemnity Agreement
&
NOTICE OF SURETY ACT AND BOND
In the matter of: Cause No. C-xxxxxx

KNOW ALL MEN BY THESE PRESENTS: the undersigned Surety, a Principal, a foreign Public
Minister, Minister Plenipotentiary and Ambassador of the Kingdom of God, after the High Order of Melchizzedec,
unto the United States, and The United States of America, specifically: The state of Nevada et al, in itinere,
"Restricted Appearance," and not generally, for and on behalf of the undersigned's Sovereign, jus soli***fn/1***
tertius interveniens, undertake and do hereby establish that undersigned is competent to witness the following facts,
true, correct, certain and complete, so help Me Almighty God:

Venue Facts - Law of the Place

As Ordained and Established by the people on Nevada soil post-July 4, 1776, Circa C.E. 1864, to wit: March 21, 1861.

CHAP. XXXVI. —An Act to enable the People of Nevada to form a Constitution " Be it enacted by the Senate and House of

Representatives of the United States of America in Congress assembled, That the inhabitants of that made a portion of the

territory of Nevada included in the boundaries hereinafter designated be, and they are hereby, authorized to form for themselves,

out of said territory, a state government, with the name aforesaid, which said state, when formed, shall be admitted into the Union

upon an equal footing with the original states, in all respects whatsoever. And be it further enacted, That the said state of Nevada

shall consist of all the territory included within the following boundaries, to wit: Commencing at a point formed by the

intersection of the thirty-eighth degree of longitude west from Washington with the thirty-seventh degree of north latitude; thence

due west along said thirty-seventh degree of north latitude to the eastern boundary line of the state of California; thence in a

1
northwesterly direction along the said eastern boundary line of the state of California to the forty-third degree of longitude west

from Washington; thence north along said forty-third degree of west longitude and said eastern boundary line of the state of

California to the forty-second degree of north latitude; thence due east along the said forty-second degree of north latitude to a

point formed by its inter section with the aforesaid thirty-eighth degree of longitude west from Washington; thence due south

down said thirty-eighth degree of west longitude to the place of beginning.

THE CONSTITUTION OF THE STATE OF NEVADA

      The Nevada constitution was framed by a convention of delegates chosen by the people. The convention met at Carson City
on July 4, 1864, and adjourned on July 28 of the same year. On the 1st Wednesday of September 1864, the constitution was
approved by the vote of the people of the Territory of Nevada, and on October 31, 1864, President Lincoln proclaimed that the
State of Nevada was admitted into the Union on an equal footing with the original states.
and "Indeed, it may be further, for the sake of argument, conceded that, where there are rights created by congress, during the
existence of a territory, which are of such a nature as to imply their perpetuity, and the consequent purpose of congress to
continue them in the state, after its admission, such continuation will, as a matter of construction, be upheld, although the
enabling act does not expressly so direct." cf. Ward v. Race Horse, 163 U.S. 504 (1896); see***Appended Covenant - Addendum
I [O.J.]; and

Testation: "yea" is yea, and" nay" is nay"

L.S. Kenneth Ray: of the family Nicholson, "The Surety shall suffer no loss"
only in capacity as beneficiary to the original organic jurisdiction aforestated herein:
I, Kenneth Ray: of the family Nicholson, of My own free volition, of majority age and competent, and in
the presence of Almighty God, in capacity as beneficiary to the original organic jurisdiction aforesaid, in the
Guaranteed Republican Form, with a pure heart and good conscience, do willingly undertake to act as Surety, to
execute this private "Silver" Bond, in the amount of twenty one Dollars silver Coin (at legal and lawful 15 to 1 ratio,
prescribed by law) united states of America, Lawful Money, in the Guaranteed Republican Form and Forum,
personally held in My ownership and possession; and
This "Silver" Bond is to the credit of the private party listed hereon, :Stephen-Walter: Goulet, in capacity as
beneficiary to the original organic jurisdiction aforesaid, jus soli, by His lawful given appellation, as full faith and
credit guarantee to any Lawful Bill in Redemption, or other obligation, duly presented under Seal in Lawful specie
money of account of the united states of America, pursuant to the 1792 Coinage Act, Act of 2 April 1792, ch. 16,
Sec. 16 1 Stat. 246, 250, entitled: Chap. XV.—An Act establishing a Mint, and regulating the Coins of the United
States; see***Appended Covenant - Addendum II [Coinage Act]; and
The Bill of Redemption is a good and lawful tender as a set-off for any alleged hypothecation [pledge or
pignus], common law indebitatus assumptsit, contract, agreement, consent, assent, or other res, purportedly held, as
a duty or obligation against :Stephen-Walter: Goulet, so as to cause an imputed disability, subordinated debtor
status, suretyship, or other presumption against the sovereign capacity, or Unalienable Rights and Powers of
Kenneth Ray: of the family Nicholson. The specific intent of this "Silver" Bond, a specialty, is to establish, by My
witness, the good and lawful credit in lawful money specie of account of :Stephen-Walter: Goulet; see***Appended
Covenant - Addendum III [Peonage, Involuntary Servitude]; and
I, Kenneth Ray: of the family Nicholson, undertake this Act of Surety, under My lawful given appellation
and seal, and by the authority of My sovereign aforesaid, as full faith and credit guarantee, to any lawful Bill or
other presentment, duly endorsed and presented to Me, under seal, and under penalty of perjury of the law of the
place so executing the same, in lawful money of account of the united states of America, in all matters of correct
public administrative, judicial, or corporate actions in the form and forum of original organic Law and Jurisdiction,
and for the benefit and credit of the peculiar private party listed above and His heirs and assigns, under explicit
reservation and without recourse to undersigned Surety/Principal; and
The general intent of the maker of this "Silver" Bond, a specialty, is to establish, by issuer's testation, good
and lawful credit, in the sum-certain amount above stated, twenty-one or more Dollars in silver Coin, that cannot
legally transfer or assign a claim of debt, or debt, against Principal's lawful given res or title, nor undersigned's
Estate, having no other legal obligation attached to it except "specific performance" hereunder, do, hereby, make
available to "bond" all actions and proceedings, by "Restricted Appearance," of the Principal and against all other
actors, trespassers and comers; and further, by explicit reservation of Rights Unalienable, at common law, savings to
suitors in all live cases or controversies, in original organic common law venue aforesaid ***fn/1*** as conclusive

2
self-authenticating evidence, Kenneth Ray: of the family Nicholson, cannot be bankrupt, insolvent, a juristic
"person" subject to any causa debendi statute, code or regulation, State or Federal CONSTRUCT, or forma pauperis,
quasi-corporation, joint maritime vessel, enjoying limited liability, merchant vessel, public vessel, straw man, ens
legis, or dolus trust KENNETH RAY NICHOLSON; and
The tenor and the term of this "Silver" Bond is for the life of the account stated, or at such other time by
agreement of the parties via restatement or re-negotiation of any contract, or until full accord and satisfaction of all
charges or claims made thereunder, by the person, or persons making the charges or claims and having the primary
liability to pay or extinguish said debt, or his or hers indemnitors, defaults or dishonors the same, or upon demand
for validation of any debt tendered, or other duty or obligation to primary Principal, in the nature of a public trust, or
otherwise, said charges or claims, including any compulsory counter-claims, shall be immediately due and payable
to Principal, without subsequent notice; and

Exoneration qui timet

Reimbursement
(Trust Clause)

Principal and indemnitors agree and hereby expressly declare that all funds due or to become due under any
contract covered by a Bond are trust funds, whether in the possession of the Principal or another, for the benefit and
payment of all persons to whom the Principal incurs obligations in the performance of such contract for which the
Surety would be liable under the Bond. If the Surety discharges any such obligation it shall be entitled to assert the
claim of such person to the trust funds. Principal shall, upon demand of the Surety and in implementation of the
trust or trusts hereby created, open an account or accounts with a bank or similar depository designated by the
Principal and approved by the Surety, which account or accounts, shall be designated as a trust account or accounts
for the deposit of such trust funds, and shall deposit therein all monies, funds, or other assets or collateral, including
after acquired property, received pursuant to said contract or contracts. Withdrawals from such account shall be by
check or similar instrument signed by the Principal and countersigned by a representative of the Surety. Said trust or
trusts shall terminate on the payment by Principal or indemnitors of all the contractual obligations for the payment
of which the trust or trusts are hereby created or upon the expiration of twenty (20) years from the date hereof,
whichever shall first occur. Surety, Principal and indemnitors further agree and expressly declare that Surety is
entitled to the order of a court of competent [original organic] jurisdiction, the specific performance of the original
contract or contracts, or trust funds contained in the Indemnity Agreement, without subsequent notice, by
mandamus, injunctive relief, or other available remedy, to prevent the Surety from suffering any anticipated or
indeterminable loss, or losses.

Failure to honor this "Silver" Bond upon tender being made therefore, shall constitute a public delict, tort,
libel, and by the public official's delictual fault, a dishonor, whereby a tender offer being made and delivered,
collateral estoppel shall ensue, by explicit reservation, and any charges or claims shall cease and determine, to be
immediately due and payable, whereof any adversarial proceeding against the Surety/Principal shall cease and
determine, with prejudice against the person, or persons, having the primary duty and the primary liability to pay or
perform their public trust, under the standard of reasonableness and due diligence, shall abdicate or vacate their
office for perjury of oath and breach of fiduciary duty to Surety/Principal, and shall suffer the imposition of civil and
criminal penalties according to Law, in the form and forum of the original organic venue and jurisdiction aforesaid;
and
NOTICE TO ALL PUBLIC OFFICIALS OR UNREGISTERED AGENTS OF A FOREIGN PRINCIPAL
IS NOTICE TO THAT PRINCIPAL ALSO THE REVENUE LAWS OF ONE COUNTRY HAVE NO EXTRA-
TERRITORIAL APPLICATION IN THE LAW FORM AND FORUM AFORESAID; AND
To hold otherwise, would be tantamount to a constitutional tort and a trespass vi et armis, to vilify and
damnify the undersigned Principal and Surety herein, contrary to Law, and the Sacred Trust that binds the
undersigned Surety; and
Teste Meipso: Common Era, this _____ day of the ______________ month, in the year of our Lord,
200____.

_________________________________________No Dolus
Testation: Kenneth Ray: of the family Nicholson
Jus soli, T21S, R60E, Sect.18

3
 ss: Las Vegas Township
Nevada state/territory
united states of America, republics

_____________________ county)
) ss:
_______________________ state)

Kenneth Ray: of the family Nicholson, known by Me or made known for Me by proper identification and
having duly affirmed to tell the truth, the whole truth, and nothing but the truth, according to the laws of His
sovereign, "Thou shalt not bear false witness", duly executed, certified, verified, and exemplified, pursuant to The
Ordinance for the Territory North and West of the River Ohio (Circa. 1787), 1 Stat 51, before Me, a Notary Public
for The State of _________________, County of ____________________, on this ______________ day of
_______________ , 200____.

_________________________________
Notary Public signature:
Seal:
_________________________________
My Notary Expires:

_________________________________

fn/1 "jus soli" Taking the relation of the States to each other, as it exists under the Constitution, and as declared by this Court, in one
uniform and consistent series of adjudication, from 6 Cr. 136, to 2 Pet. 590, held: 1: that "the several States are still foreign to each other, for all
but Federal purposes"; their position "a single unconnected sovereign power" before and without any confederation between them, is an
inevitable consequence." (Baldwin, 83.) "As the States are still foreign to each other, for all but Federal purposes, the United States could have
neither a right of soil nor jurisdiction, propriety or dominion, within any particular State, but by a cession from the State by its legislature, or a
convention of the people. * * The Constitution is a cession of jurisdiction only, made by the people of a State," (Baldwin, 94.) But the United
States must have the "consent of a State," and "purchase from the owners of the soil before it can build a post-office, custom-house, fort, dock-
yard, or any other public structure. Thus the sovereignty of a State over its own territory has not been ceded by the adoption of the Constitution.
"By the treaty of peace with Great Britain, the powers of government, and the right of soil, which had previously been in Great Britain, passed
definitely to these States." (8 Wheaton, 584.)" Then there could be no mode by which the United States could acquire either 'the powers of
government,' or the 'right of soil' in any territory, but by a cession from the States. * * And it was held by this Court, that the only territory which
in fact belonged to the United Stated in 1787 was acquired by the cession from Virginia." "What then is the extent of jurisdiction which a State
possesses? We answer without hesitation the Jurisdiction of a State Is co-extensive with its legislative power." (5 Wheat., 375; Baldwin, 87, 88.)
The right of soil and general jurisdiction over the whole territory, within the boundaries of the several States, was invested In the people of each
State, as absolute sovereigns of both; neither right can be exercised but by a grant from them, and what is not given way by cession, still remains
with them." (Baldwin, 99; 2 Peters, 468.) In 1795, Georgia, which had ceded none of its territory, made sale of a large tract, on the Yazoo River.
The United States denied the right of Georgia to make such sale. The question was brought before the Supreme Court in the case of Fletcher P.
Peck, and the Court decided that the title of the land was in Georgia. (6 Cranch 142.) Referring to the formation of the Union, the Court held that:
"A judicial system was to be prepared, not for a consolidated people, but for distinct societies, already possessing distinct systems. (10 Wheaton,
46) " The power having existed prior to the Constitution, and not having been prohibited by that instrument, remains with the States." (5 Wheat.,
16, 17; 2 Peters, 466.) [C. C. B.]

fn/2 In National Mutual Insurance Company of the District of Columbia, 337 U.S. 582, 93 L.Ed. 1556 (1948) states that citizens of the
District of Columbia [UNITED STATES] are not embraced by the judicial power under Article 3 of the Constitution for the United States of
America, the same statement is held in Hepburn Dundas v. Elizey, 2 Cranch (U.S.) 445, 2 L.Ed. 332.; In 1804, the Supreme Court, through Chief
Justice Marshall, held that a citizen of the District of Columbia was not a citizen of a state:
"We therefore decline to overrule the opinion of Chief Justice Marshall, and we hold that the District of Columbia is not a state within
Article 3 of the Constitution. In other words cases between citizens of the District and those of the states were not included of the catalogue of
controversies over which the Congress could give jurisdiction to the federal courts by virtue of Article 3. In other words Congress has exclusive
legislative jurisdiction over citizens of Washington District of Columbia and through their plenary power nationally covers those citizens even
when in one of the several states as though the district expands for the purpose of regulating its citizens wherever they go throughout the states in
union. But see: "savings to suitor's" clause, Section 9, and Sections 11 and 13, 1 Stat. 73, Approved C.E. September 24, 1789.

Covenant : ADDENDUM I

4
 In Original Organic Jurisdiction - Common Law - Savings to Suitors
"Juris = Oath and Diction = Spoken"
Restatement: Terms of Public (secular) Trust

Found and determined: The people of the States who made the Constitution, considered themselves as the
sovereign (Object), and the government the subject. They were the principals - it the agent. That this is true none
will dispute; for they "pledged" to each other, their lives, fortunes and sacred honour. "The United States of
America," in the Guaranteed Republican Form, self-governing, Article IV, Section 4 (Circa 1776-1787);
Found and determined: All "Public Service is a public trust," "Each employee has a responsibility to the
United States Government and its citizens to place loyalty to the Constitution, laws and ethical principles above
private gain." 5 CFR § 2635.101(a), and (a)(1); primarily the purpose of public officials "oath of office" and
"fidelity bond;" creating the duty, obligation, and liability or enforceable "debt" to the principals, settlors, and to
their posterity for breach thereof; see: Marbury v. Madison, 5 U.S. [Cranch] 137 (1803), all unconstitutional acts are
ultra vires and void;
Found and determined: From the Constitution of the State of Nevada, Circa C.E. 7 September 1864,
Article I, Bill of Rights, Section 2: ___"But the paramount allegiance of every citizen is due to the Federal
Government, in exercise of all its constitutional powers as the same have been or may be defined by the Supreme
Court of the United states;”
Found and determined "Original Jurisdiction" at: Article III, Section 2, Clause 2, Constitution for the
United States of America, in the guaranteed Republican Form, Article IV, Section 4 thereof, effective C.E.
September 17, 1787, and by operation of The Preamble and Bill of Rights, effective C.E. December 15, 1791, c.f.,
U.S. Supreme Court EX PARTE SIEBOLD, 100 U.S. 371 (1879), 100 U.S. 371, October Term, 1879, in pertinent
part: "..... it can only exercise original jurisdiction in cases affecting ambassadors, public ministers and consuls, and
cases in which a State is a party;" but has appellate jurisdiction in all other cases of Federal cognizance, 'with such
exceptions and under such regulations as Congress shall make,' Ex parte Bollman and Swartwout, supra; Ex parte
Watkins, 3 Pet. 202; 7 id. 568; Ex parte Wells, 18 How. 307, 328; Ableman v. Booth, 21 id. 506; Ex parte Yerger, 8
Wall. 85, which, in every live case or controversy, obtains from the right of soil, jus utendi et abutendi. But see:
Exodus 19:5 [Ferrar Fenton, KJV];
Found and determined: ".....the "saving to suitors ***fn/2***" clause in 28 U.S.C. § 1333, "the extent to
which state law may be used to remedy maritime injuries is constrained by a so-called 'reverse - Erie' doctrine...,"
STATE OF NORTH DAKOTA, Voge v. Schnaidt, 2001 ND 174, 635 N.W.2d 161, Filed Nov. 2, 2001;
Found and determined: Rule E (8): "Restricted Appearance." An appearance to defend against an admiralty
and maritime claim with respect to which there has issued process in rem, or process of attachment and garnishment
whether pursuant to these Supplemental Rules or to Rule 4(e), may be expressly restricted to the defense of such
claim, and in that event shall not constitute an appearance for the purposes of any other claim with respect to which
such process is not available or has not been served;
Found and determined: A man cannot be compelled to accept ["quasi-contractual"] benefits on the theory
of "unjust enrichment." See Ames. The History of Assumptsit, 2 Harv. L. Rev. 1, 53, 58 (1888). As Mr. Justice
Holmes once put it, "An obligation to pay money generally is enforced by an action of assumptsit and to that extent
is referred to a contract even though it is one existing only by fiction of law." Thomas v. Matthiessen, 232 U.S. 221,
235.
Found and determined: The undersigned "Surety" is a separate legal person, under explicit reservation,
enjoying the "privilege of exemption," according to International Law, jus gentium privatum and jus gentium
publicum. TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE, PART IV, JURISDICTION AND VENUE,
CHAPTER 97, JURISDICTIONAL IMMUNITIES OF FOREIGN STATES, Sec. 1603. Definitions: "For purposes
of this chapter - (a) A ''foreign state'', except as used in section 1608 of this title, includes a political subdivision of a
foreign state or an agency or instrumentality of a foreign state as defined in subsection (b). (b) An ''agency or
instrumentality of a foreign state'' means any entity - (1) which is a separate legal person, corporate or otherwise,
and (2) which is an organ of a foreign state or political subdivision thereof, or a majority of whose shares or other
ownership interest is owned by a foreign state or political subdivision thereof, and (3) which is neither a citizen of a
State of the United States as defined in section 1332 (c) and (d) of this title, nor created under the laws of any third
country......(d) A ''commercial activity'' means either a regular course of commercial conduct or a particular
commercial transaction or act. The commercial character of an activity shall be determined by reference to the
nature of the course of conduct or particular transaction or act, rather than by reference to its purpose. (e) A
''commercial activity carried on in the United States by a foreign state'' means commercial activity carried on by

5
such state and having substantial contact with the United States." Pub. L. 94-583, Sec. 4(a), Oct. 21, 1976, 90 Stat.
2892;
Found and determined: Whoever falsely assumes or pretends to be an officer or employee acting under the
authority of the United States or any department, agency or officer thereof, and acts as such, or in such pretended
character demands or obtains any money, paper, document, or thing of value, shall be fined under this title or
imprisoned not more than three years, or both. 18 U.S.C.A. (2001) § 912;

Covenant - ADDENDUM II
Act of 2 April 1792, ch. 16, Sec. 16, 1 Stat. 246, 250

Chap. XV.—An Act establishing a Mint, and regulating the Coins of the United States.
Mint established at the seat of government.
SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
and it is hereby enacted and declared, That a mint for the purpose of a national coinage be, and the same is established; to be
situate and carried on at the seat of the government of the United States, for the time being: And that for the well conducting of
the business of the said mint, there shall be the following officers and persons, namely,—a Director, an Assayer, a Chief Coiner,
an Engraver, a Treasurer.
Director to employ workmen, etc.
SEC. 2. And be it further enacted, That the Director of the mint shall employ as many clerks, workmen and servants, as he shall
from time to time find necessary, subject to the approbation of the President of the United States.
Duty of the officers: Assayer, Chief Coiner, Engraver, Treasurer.
SEC. 3. And be it further enacted, That the respective functions and duties of the officers above mentioned shall be as follows:
The Director of the mint shall have the chief management of the business thereof, and shall superintend all other officers and
persons who shall be employed therein. The Assayer shall receive and give receipts for all metals which may lawfully be brought
to the mint to be coined; shall assay all such of them as may require it, and shall deliver them to the Chief Coiner to be coined.
The Chief Coiner shall cause to be coined all metals which shall be received by him for that purpose, according to such
regulations as shall be prescribed by this or any future law. The Engraver shall sink and prepare the necessary dies for such
coinage, with the proper devices and inscriptions, but it shall be lawful for the functions and duties of Chief Coiner and Engraver
to be performed by one person. The Treasurer shall receive from the Chief Coiner all the coins which shall have been struck, and
shall pay or deliver them to the persons respectively to whom the same ought to be paid or delivered: he shall moreover receive
and safely keep all monies which shall be for the use, maintenance and support of the mint, and shall disburse the same upon
warrants signed by the Director.
To take oath.
SEC. 4. And be it further enacted, That every officer and clerk of the said mint shall, before he enters upon the execution of his
office, take an oath or affirmation before some judge of the United States faithfully and diligently to perform the duties thereof
And give bond.
SEC. 5. And be it further enacted, That the said assayer, chief coiner and treasurer, previously to entering upon the execution of
their respective offices, shall each become bound to the United States of America, with one or more sureties to the satisfaction of
the Secretary of the Treasury, in the sum of ten thousand dollars, with condition for the faithful and diligent performance of the
duties of his office.
Salaries.
SEC. 6. And be it further enacted, That there shall be allowed and paid as compensations for their respective services—To the
said director, a yearly salary of two thousand dollars, to the said assayer, a yearly salary of one thousand five hundred dollars, to
the said chief coiner, a yearly salary of one thousand five hundred dollars, to the said engraver, a yearly salary of one thousand
two hundred dollars, to the said treasurer, a yearly salary of one thousand two hundred dollars, to each clerk who may be
employed, a yearly salary not exceeding five hundred dollars, and to the several subordinate workmen and servants, such wages
and allowances as are customary and reasonable, according to their respective stations and occupations.
Accounts how and where to be settled.
SEC. 7. And be it further enacted, That the accounts of the officers and persons employed in and about the said mint and for
services performed in relation thereto, and all other accounts concerning the business and administration thereof, shall be
adjusted and settled in the treasury department of the United States, and a quarter yearly account of the receipts and
disbursements of the said mint shall be rendered at the said treasury for settlement according to such forms and regulations as
shall have been prescribed by that department; and that once in each year a report of the transactions of the said mint,
accompanied by an abstract of the settlements which shall have been from time to time made, duly certified by the comptroller of
the treasury, shall be laid before Congress for their information.
President of U. S. to cause buildings to be provided.
Expense how to be defrayed.
SEC. 8. And be it further enacted, That in addition to the authority vested in the President of the United States by a resolution of
the last session, touching the engaging of artists and the procuring of apparatus for the said mint, the President be authorized, and
he is hereby authorized to cause to be provided and put in proper condition such buildings, and in such manner as shall appear to
him requisite for the purpose of carrying on the business of the said mint; and that as well the expenses which shall have been
incurred pursuant to the said resolution as those which may be incurred in providing and preparing the said buildings, and all
other expenses which may hereafter accrue for the maintenance and support of the said mint, and in carrying on the business
thereof, over and above the sums which may be received by reason of the rate per centum for coinage herein after mentioned,
shall be defrayed from the treasury of the United States, out of any monies which from time to time shall be therein, not
otherwise appropriated.
Species of the coins to be struck.
Eagles, Half Eagles. Quarter Eagles.

6
 Dollars or Units. Half Dollars. Quarter Dollars. Dismes. Half Dismes, Cents, Half Cents..
SEC. 9. And be it further enacted, That there shall be from time to time struck and coined at the said mint, coins of gold, silver,
and copper, of the following denomination, values and descriptions, viz. Eagles—each to be of the value of ten dollars or units,
and to contain two hundred and forty-seven grains and four eighths of a grain of pure, or two hundred and seventy grains of
standard gold. Half Eagles—each to be of the value of five dollars, and to contain one hundred and twenty-three grains and six
eighths of a grain of pure, or one hundred and thirty-five grains of standard gold. Quarter Eagles—each to be of the value of two
dollars and a half dollar, and to contain sixty-one grains and seven eighths of a grain of pure, or sixty-seven grains and four
eighths of a grain of standard gold. Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now
current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and
sixteen grains of standard silver. Half Dollars—each to be of half the value of the dollar or unit, and to contain one hundred and
eighty-five grains and ten sixteenth parts of a grain of pure, or two hundred and eight grains of standard silver. Quarter Dollars—
each to be of one fourth the value of the dollar or unit, and to contain ninety-two grains and thirteen sixteenth parts of a grain of
pure, or one hundred and four grains of standard silver. Dismes—each to be of the value of one tenth of a dollar or unit, and to
contain thirty-seven grains and two sixteenth parts of a grain of pure, or forty-one grains and three fifths parts of a grain of
standard silver. Half Dismes—each to be of the value of one twentieth of a dollar, and to contain eighteen grains and nine
sixteenths parts of a grain of pure, or twenty grains and four fifths parts of a grain of standard silver. Cents—each to be of the
value of one hundredth part of a dollar, and to contain eleven penny-weights of copper. Half Cents—each to be of the value of
half a cent, and to contain five penny-weights and a half a penny-weight of copper.

Of what devices.
SEC. 10. And be it further enacted, That, upon the said coins respectively, there shall be the following devices and legends,
namely: Upon one side of each of the said coins there shall be an impression emblematic of liberty, with an inscription of the
word Liberty, and the year of the coinage; an upon the reverse of each of the gold and silver coins there shall be the figure or
representation of an eagle, with this inscription, "United States of America" and upon the reverse of each of the copper coins,
there shall be an inscription which shall express the denomination of the piece, namely, cent or half cent, as the case may require.
Proportional value of gold and silver.
SEC. 11. And be it further enacted, That the proportional value of gold to silver in all coins which shall by law be current as
money within the United States, shall be as fifteen to one, according to quantity in weight, of pure gold or pure silver; that is to
say, every fifteen pounds weight of pure silver shall be of equal value in all payments, with one pound weight of pure gold, and
so in proportion as to any greater or less quantities of the respective metals.
Standard for gold coins, and alloy how to be regulated.
Director to report the practice of the mint touching the alloy of gold coins.
SEC. 12. And be it further enacted, That the standard for all gold coins of the United States shall be eleven parts fine to one part
alloy; and accordingly that eleven parts in twelve of the entire weight of each of the said coins shall consist of pure gold, and the
remaining one twelfth part of alloy; and the said alloy shall be composed of silver and copper, in such proportions not exceeding
one half silver as shall be found convenient; to be regulated by the director of the mint, for the time being, with the approbation
of the President of the United States, until further provisions shall be made by law. And to the end that the necessary information
may be had in order to the making of such further provision, it shall be the duty of the director of the mint, at the expiration of a
year after commencing the operations of the said mint, to report to Congress the practice thereof during the said year, touching
the composition of the alloy of the said gold coins, the reasons for such practice, and the experiments and observations which
shall have been made concerning the effects of different proportions of silver and copper in the said alloy.
Standard for silver coins—alloy how to be regulated
Alloy.
SEC. 13. And be it further enacted, That the standard for all silver coins of the United States, shall be one thousand four hundred
and eighty-five parts fine to one hundred and seventy-nine parts alloy; and accordingly that one thousand four hundred and
eighty-five parts in one thousand six hundred and sixty-four parts of the entire weight of each of the said coins shall consist of
pure silver, and the remaining one hundred and seventy-nine parts of alloy; which alloy shall be wholly of copper.
Persons may bring gold and silver bullion, to be coined free of expense;
how the director may exchange coins therefor, deducting half percent.
Duty of the Secretary of Treasury herein.
The half per cent. to constitute a fund, etc.
SEC. 14. And be it further enacted, That it shall be lawful for any person or persons to bring to the said mint gold and silver
bullion, in order to their being coined; and that the bullion so brought shall be there assayed and coined as speedily as may be
after the receipt thereof, and that free of expense to the person or persons by whom the same shall have been brought. And as
soon as the said bullion shall have been coined, the person or persons by whom the same shall have been delivered, shall upon
demand receive in lieu thereof coins of the same species of bullion which shall have been so delivered, weight for weight, of the
pure gold or silver therein contained: Provided nevertheless, That it shall be at the mutual option of the party or parties bringing
such bullion, and of the director of the said mint, to make an immediate exchange of coins for standard bullion, with a deduction
of one half per cent. from the weight of the pure gold , or pure silver contained in the said bullion, as an indemnification to the
mint for the time which will necessarily be required for coining the said bullion, and for the advance which shall have been so
made in coins. And it shall be the duty of the Secretary of the Treasury to furnish the said mint from time to time whenever the
state of the treasury will admit thereof, with such sums as may be necessary for effecting the said exchanges, to be replaced as
speedily as may be out of the coins which shall have been made of the bullion for which the monies so furnished shall have been
exchanged; and the said deduction of one half per cent. shall constitute a fund towards defraying the expenses of the said mint.
Order of delivering coins to persons bringing bullion, and penalty on giving undue preference.
SEC. 15. And be it further enacted, That the bullion which shall be brought as aforesaid to the mint to be coined, shall be coined,
and the equivalent thereof in coins rendered, if demanded, in the order in which the said bullion shall have been brought or
delivered, giving priority according to priority of delivery only, and without preference to any person or persons; and if any
preference shall be given contrary to the direction aforesaid, the officer by whom such undue preference shall be given, shall in
each case forfeit and pay one thousand dollars; to be recovered with costs of suit. And to the end that it may be known if such
preference shall at any time be given, the assayer or officer to whom the said bullion shall be delivered to be coined, shall give to

7
the person or persons bringing the same, a memorandum in writing under his hand, denoting the weight, fineness and value
thereof, together with the day and order of its delivery into the mint.
Coins made a lawful tender,
SEC. 16. And be it further enacted, That all the gold and silver coins which shall have been struck at, and issued from the said
mint, shall be a lawful tender in all payments whatsoever, those of full weight according to the respective values herein before
declared, and those of less than full weight at values proportional to their respective weights.
and to be made conformable to the standard weights, etc
SEC. 17. And be it further enacted, That it shall be the duty of the respective officers of the said mint, carefully and faithfully to
use their best endeavours that all the gold and silver coins which shall be struck at the said mint shall be, as nearly as may be,
conformable to the several standards and weights aforesaid, and that the copper whereof the cents and half cents aforesaid may be
composed, shall be of good quality.
The Treasurer to reserve not less than three pieces of each coin to be assayed;
when and by whom.
SEC. 18. And the better to secure a due conformity of the said gold and silver coins to their respective standards, Be it further
enacted, That from every separate mass of standard gold or silver, which shall be made into coins at the said mint, there shall be
taken, set apart by the treasurer and reserved in his custody a certain number of pieces, not less than three, and that once in every
year the pieces so set apart and reserved, shall be assayed under the inspection of the Chief Justice of the United States, the
Secretary and Comptroller of the Treasury, the Secretary for the department of State, and the Attorney General of the United
States, (who are hereby required to attend for that purpose at the said mint, on the last Monday in July in each year,) or under the
inspection of any three of them, in such manner as they or a majority of them shall direct, and in the presence of the director,
assayer and chief coiner of the said mint; and if it shall be found that the gold and silver so assayed, shall not be inferior to their
respective standards herein before declared more than one part in one hundred and forty-four parts, the officer or officers of the
said mint whom it may concern shall be held excusable; but if any greater inferiority shall appear, it shall be certified to the
President of the United States, and the said officer or officers shall be deemed disqualified to hold their respective offices.
Penalty on debasing the coins.
SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be
debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than
the same ought to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or
persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any
of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the
purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who
shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death.
Money of account to be expressed in dollars, etc.
SEC. 20. And be it further enacted, That the money of account of the United States shall be expressed in dollars or units, dismes
or tenths, cents or hundredths, and milles or thousandths, a disme being the tenth part of a dollar, a cent the hundredth part of a
dollar, a mille the thousandth part of a dollar, and that all accounts in the public offices and all proceedings in the courts of the
United States shall be kept and had in conformity to this regulation.

APPROVED, April 2, 1792.

(a). The acts establishing and regulating the mint of the United States, and for regulating coins, have been: An act establishing a
mint and regulating the coins of the United States passed April 2, 1792, chap. 16, an act regulating foreign coins, and for other
purposes, February 9, 1793, chap. 5; an act in alteration of the act establishing a mint and regulating the coins of the United
States, March 3, 1794, chap. 4; an act supplementary to the act entitled, "An act to establish a mint and regulating the coins of the
United States," passed March 3, 1795, chap. 47; an act respecting the mint, May 27, 1796, chap. 33; an act respecting the mint,
April 24, 1800, chap. 34; an act concerning the mint, March 3, 1801, chap. 21; an act to prolong the continuance of the mint at
Philadelphia, January 14, 1818, chap. 4; an act further to prolong the mint at Philadelphia, March 3, 1823, chap. 42; an act to
continue the mint at the city of Philadelphia, and for other purposes, May 19, 1828, chap. 67; an act concerning the gold coins of
the United States, and for other purposes, June 28, 1834, chap. 95; an act to establish branches of the mint of the United States,
March 3, 1835, chap. 37; an act supplementary to an act entitled, "An act establishing a mint and regulating the coins of the
United States," January 18, 1837, chap. 3; an act to amend an act entitled, "An act to establish branches of the mint of the United
States," February 13, 1837, chap. 14; an act amendatory of an act establishing the branch mint at Danlonega, Georgia, and
defining the duties of the assayer and coiner, February 27, 1843, chap. 46.

Historical and Revision Notes

Revised Section Source (U.S. Code) Source (Statutes at Large)

5101 31:371. R.S. Sec. 3563.
The word ''money'' is substituted for ''money of account'' to eliminate unnecessary words. As far as can be determined, the phrase
''money of account'' has not been interpreted by any court or Government agency. The phrase was used by Alexander Hamilton
in his ''Report on the Establishment of the Mint'' (1791). In that Report, Hamilton propounded 6 questions, including: 1st. What
ought to be the nature of the money unit of the United States? Thereafter, Hamilton uses the phrases ''money unit of the United
States'' and ''money of account'' interchangeably and in the sense that the phrases are used to denote the monetary system for
keeping financial accounts. In short, the phrases simply indicate that financial accounts are to be based on a decimal money
system:, and it is certain that nothing can be more simple and convenient than the decimal subdivisions. There is every reason to
expect that the method will speedily grow into general use, when it shall be seconded by corresponding coins. On this plan the
unit in the money of account will continue to be, as established by that resolution (of August 8, 1786), a dollar, and its multiples,
dimes, cents, and mills, or tenths, hundredths, (sic) and thousands. Thus, the phrase ''money of account'' did not mean, by itself,
that dollars or fractions of dollars must be equal to something having intrinsic or ''substantive'' value. This concept is supported
by earlier writings of Thomas Jefferson in his ''Notes on the Establishment of a Money Unit, and of a Coinage for the United

8
States'' (1784), and the 1782 report to the President of the Continental Congress on the coinage of the United States by the
Superintendent of Finances, Robert Morris, which was apparently prepared by the Assistant Superintendent, Gouverneur Morris.
See Paul L. Ford, The Writings of Thomas Jefferson, vol. III (G.P. Putnam's Sons, 1894) pp. 446-457; William G. Sumner, The
Financier and the Finances of the American Revolution, vol. II (Burt Franklin, 1891, reprinted 1970) pp. 36-47; and George T.
Curtis, History of the Constitution, vol. I (Harper and Brothers, 1859) p. 443, n2. The words ''or units'' and ''and all accounts in
the public offices and all proceedings in the courts shall be kept and had in conformity to this regulation'' are omitted as surplus.

"invitio beneficium non datur"

Covenant: Addendum III
Peonage & Involuntary Servitude

U.S. Supreme Court

219 U.S. 219 (1911)
ALONZO BAILEY, Plff. in Err., v. STATE OF ALABAMA
No. 300. Argued October 20, 21, 1910. Decided January 3, 1911

This court has frequently recognized the general power of every legislature to prescribe the evidence which
shall be received, and the effect of that evidence, in the courts of its own government. Fong Yue Ting v. United
States, 149 U.S. 698, 479, 37 S. L. ed. 905, 925, 13 Sup. Ct. Rep. 1016. In the exercise of this power numerous
statutes have been enacted providing that proof of one fact shall be prima facie evidence of the main fact in issue;
and where the inference is not purely arbitrary, and there is a rational relation between the two facts, and the accused
is not deprived of a proper opportunity to submit all the facts bearing upon the issue, it has been held that such
statutes do not violate the requirements of due process of law. Adams v. New York, 192 U.S. 585 , 48 L. ed. 575, 24
Sup. Ct. Rep. 372; Mobile, J. & K. C. R. Co. v. Turnipseed, decided by this court December 19, 1910 [ 219 U.S. 35,
55 L. ed. --, 31 Sup. Ct. Rep. 136].
The latest expression upon this point is found in the case last cited, where the court, by Mr. Justice Lurton,
said:
'That a legislative presumption of one fact from evidence of another may not constitute a denial of due
process of law, or a denial of the equal protection of the law, it is only essential that there shall be some rational
connection between the fact proved and the ultimate fact [219 U.S. 219, 239] presumed, and that the inference of
one fact from proof of another shall not be so unreasonable as to be a purely arbitrary mandate. So, also, it must not,
under guise of regulating the presentation of evidence, operate to preclude the party from the right to present his
defense to the main fact thus presumed. If a legislative provision not unreasonable in itself, prescribing a rule of
evidence, in either criminal or civil cases, does not shut out from the party affected a reasonable opportunity to
submit to the jury in his defense all of the facts bearing upon the issue, there is no ground for holding that due
process of law has been denied him.'
In this class of cases where the entire subject-matter of the legislation is otherwise within state control, the
question has been whether the prescribed rule of evidence interferes with the guaranteed equality before the law, or
violates those fundamental rights and immutable principles of justice which are embraced within the conception of
due process of law. But where the conduct or fact, the existence of which is made the basis of the statutory
presumption, itself falls within the scope of a provision of the Federal Constitution, a further question arises. It is
apparent that a constitutional prohibition cannot be transgressed indirectly by the creation of a statutory presumption
any more than it can be violated by direct enactment. The power to create presumptions is not a means of escape
from constitutional restrictions. And the state may not in this way interfere with matters withdrawn from its
authority by the Federal Constitution, or subject an accused to conviction for conduct which it is powerless to
proscribe.
In the present case it is urged that the statute as amended, through the operation of the presumption for
which it provides, violates the 13th Amendment of the Constitution of the United States and the act of Congress
passed for its enforcement. [219 U.S. 219, 240] The 13th Amendment provides:
'Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party
shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.
'Section 2. Congress shall have power to enforce this article by appropriate legislation.
Pursuant to the authority thus conferred, Congress passed the act of March 2, 1867, chap. 187, 14 Stat. at
L. 546, the provisions of which are now found in 1990 and 5526 of the Revised Statutes (U. S. Comp. Stat. 1901,
pp. 1266, 3715), as follows:
'Sec. 1990. The holding of any person to service or labor under the system known as peonage is abolished
and forever prohibited in the territory of New Mexico, or in any other territory or state of the United States; and all

9
acts, laws, resolutions, orders, regulations, or usages of the territory of New Mexico, or of any other territory or
state, which have heretofore established, maintained, or enforced, or by virtue of which any attempt shall hereafter
be made to establish, maintain, or enforce, directly or indirectly, the voluntary or involuntary service or labor of any
persons as peons, in liquidation of any debt or obligation, or otherwise, are declared null and void.'
'Sec. 5526. Every person who holds, arrests, returns, or causes to be held, arrested, or returned, or in any
manner aids in the arrest or return, of any person to a condition of peonage, shall be punished by a fine of not less
than one thousand nor more than five thousand dollars, or by imprisonment not less than one year nor more than five
years, or by both.'
The language of the 13th Amendment was not new. It reproduced the historice words of the ordinance of
1787 for the government of the Northwest territory, and gave them unrestricted application within the United States
and all places subject to their jurisdiction. While the immediate concern was with African slavery, the [219 U.S. 219,
241] Amendment was not limited to that. It was a charter of universal civil freedom for all persons, of whatever race,
color, or estate, under the flag.
The words involuntary servitude have a 'larger meaning than slavery.'
'It was very well understood that, in the form of apprenticeship for long terms, as it had been practised in
the West India Islands, on the abolition of slavery by the English government, or by reducing the slaves to the
condition of serfs attached to the plantation, the purpose of the article might have been evaded, if only the word
'slavery' had been used.' Slaughter-House Cases, 16 Wall. p. 69, 21 L. ed. 406. The plain intention was to abolish
slavery of whatever name and form and all its badges and incidents; to render impossible any state of bondage; to
make labor free, by prohibiting that control by which the personal service of one man is disposed of or coerced for
another's benefit, which is the essence of involuntary servitude.
While the Amendment was self-executing, so far as its terms were applicable to any existing condition,
Congress was authorized to secure its complete enforcement by appropriate legislation. As was said in the Civil
Rights Cases: 'By its own unaided force and effect it abolished slavery, and established universal freedom. Still,
legislation may be necessary and proper to meet all the various cases and circumstances to be affected by it, and to
prescribe proper modes of redress for its violation in letter or spirit. And such legislation may be primary and direct
in its character; for the Amendment is not a mere prohibition of state laws establishing or upholding slavery, but an
absolute declaration that slavery or involuntary servitude shall not exist in any part of the United States.' 109 U.S.
20, 27 L. ed. 842, 3 Sup. Ct. Rep. 18.
The act of March 2, 1867 (Rev. Stat. 1990 and 5526, supra), a was a valid exercise of this express authority.
Clyatt v. United States, 197 U.S. 207, 49 L. ed. 726, 25 Sup. Ct. Rep. 429. It declared that all laws of any state, by
virtue of which any attempt should be made 'to establish, maintain, or enforce, directly or [219 U.S. 219, 242]
indirectly, the voluntary or involuntary service or labor of any person as peons, in liquidation of any debt or
obligation, or otherwise,' should be null and void.
Peonage is a term descriptive of a condition which has existed in Spanish America, and especially in
Mexico. The essence of the thing is compulsory service in payment of a debt. A peon is one who is compelled to
work for his creditor until his debt is paid. And in this explicit and comprehensive enactment, Congress was not
concerned with mere names or manner of description, or with a particular place or section of the country. It was
concerned with a fact, wherever it might exist; with a condition, however named and wherever it might be
established, maintained, or enforced.
The fact that the debtor contracted to perform the labor which is sought to be compelled does not withdraw
the attempted enforcement from the condemnation of the statute. The full intent of the constitutional provision could
be defeated with obvious facility if, through the guise of contracts under which advances had been made, debtors
could be held to compulsory service. It is the compulsion of the service that the statute inhibits, for when that occurs,
the condition of servitude is created, which would be not less involuntary because of the original agreement to work
out the indebtedness. The contract exposes the debtor to liability for the loss due to the breach, but not to enforced
labor. This has been so clearly stated by this court in the case of Clyatt, supra, that discussion is unnecessary. The
court there said:
'The constitutionality and scope of 1990 and 5526 present the first questions for our consideration. They
prohibit peonage. What is peonage? It may be defined as a status or condition of compulsory service, based upon the
indebtedness of the peon to the master. The basal fact is indebtedness. As said by Judge Benedict, delivering the
opinion in Jaremillo v. Romero, 1 N. M. [219 U.S. 219, 243] 190, 194: 'One fact existed universally; all were
indebted to their masters. This was the cord by which they seemed bound to their masters' service.' Upon this is
based a condition of compulsory service. Peonage is sometimes classified as voluntary or involuntary, but this
implies simply a difference in the mode of origin, but none in the character of the servitude. The one exists where
the debtor voluntarily contracts to enter the service of his creditor. The other is forced upon the debtor by some

10
provision of law. But peonage, however created, is compulsory service, involuntary servitude. The peon can release
himself therefrom, it is true, by the payment of the debt, but otherwise the service is enforced. A clear distinction
exists between peonage and the voluntary performance of labor or rendering of services in payment of a debt. In the
latter case the debtor, though contracting to pay his indebtedness by labor or service, and subject like any other
contractor to an action for damages for breach of that contract, can elect at any time to break it, and no law or force
compels performance or a continuance of the service. We need not stop to consider any possible limits or
exceptional cases, such as the service of a sailor (Robertson v. Baldwin, 165 U.S. 275, 41 L. ed. 715, 17 Sup. Ct.
Rep. 326), or the obligations of a child to its parents, or of an apprentice to his master, or the power of the legislature
to make unlawful and punish criminally an abandonment by an employee of his post of labor in any extreme cases.
That which is contemplated by the statute is compulsory service to secure the payment of a debt.' 197 U. S. pp. 215,
216.
The act of Congress, nullifying all state laws by which it should be attempted to enforce the 'service or
labor of any persons as peons, in liquidation of any debt or obligation, or otherwise,' necessarily embraces all
legislation which seeks to compel the service or labor by making it a crime to refuse or fail to perform it. Such laws
would furnish the readiest means of compulsion. The 13th [219 U.S. 219, 244] Amendment prohibits involuntary
servitude except as punishment for crime. But the exception, allowing full latitude for the enforcement of penal
laws, does not destroy the prohibition. It does not permit slavery or involuntary servitude to be established or
maintained through the operation of the criminal law by making it a crime to refuse to submit to the one or to render
the service which would constitute the other. The state may impose involuntary servitude as a punishment for crime,
but it may not compel one man to labor for another in payment of a debt, by punishing him as a criminal if he does
not perform the service or pay the debt.
If the statute in this case had authorized the employing company to seize the debtor, and hold him to the
service until he paid the $15, or had furnished the equivalent in labor, its invalidity would not be questioned. It
would be equally clear that the state could not authorize its constabulary to prevent the servant from escaping, and to
force him to work out his debt. But the state could not avail itself of the sanction of the criminal law to supply the
compulsion any more than it could use or authorize the use of physical force. 'In contemplation of the law, the
compulsion to such service by the fear of punishment under a criminal statute is more powerful than any guard
which the employer could station.' Ex parte Hollman, 79 S. C. 22, 21 L.R.A.(N.S.) 249, 60 S. E. p. 24, 14 A. & E.
Ann. Cas. 1109.
What the state may not do directly it may not do indirectly. If it cannot punish the servant as a criminal for
the mere failure or refusal to serve without paying his debt, it is not permitted to accomplish the same result by
creating a statutory presumption which, upon proof of no other fact, exposes him to conviction and punishment.
Without imputing any actual motive to oppress, we must consider the natural operation of the statute here in
question (Henderson v. New York [Henderson v. Wickham] 92 U. S. p. 268, 23 L. ed. 547), and it is apparent that it
furnishes a convenient instrument for the coercion [219 U.S. 219, 245] which the Constitution and the act of
Congress forbid; an instrument of compulsion peculiarly effective as against the poor and the ignorant, its most
likely victims. There is no more important concern than to safeguard the freedom of labor upon which alone can
enduring prosperity be based. The provision designed to secure it would soon become a barren form if it were
possible to establish a statutory presumption of this sort, and to hold over the heads of laborers the threat of
punishment for crime, under the name of fraud, but merely upon evidence of failure to work out their debts. The act
of Congress deprives of effect all legislative measures of any state through which, directly or indirectly, the
prohibited thing, to wit, compulsory service to secure the payment of a debt, may be established or maintained; and
we conclude that 4730, as amended, of the Code of Alabama, in so far as it makes the refusal or failure to perform
the act or service, without refunding the money or paying for the property prima facie evidence of the commission
received of the crime which the section defines, is in conflict with the 13th Amendment, and the legislation
authorized by that Amendment, and is therefore invalid.
Found and determined: TITLE 18 - CRIMES AND CRIMINAL PROCEDURE PART I - CRIMES
CHAPTER 77 - PEONAGE AND SLAVERY. Sec. 1581. Peonage; obstructing enforcement (a) Whoever holds or
returns any person to a condition of peonage, or arrests any person with the intent of placing him in or returning him
to a condition of peonage, shall be fined under this title or imprisoned not more than 10 years, or both. (b) Whoever
obstructs, or attempts to obstruct, or in any way interferes with or prevents the enforcement of this section, shall be
liable to the penalties prescribed in subsection (a). SOURCE (June 25, 1948, ch. 645, 62 Stat. 772; Pub. L. 103-322,
title XXXIII, Sec. 330016(1)(K), Sept. 13, 1994, 108 Stat. 2147; Pub. L. 104-208, div. C, title II, Sec. 218(a), Sept.
30, 1996, 110 Stat. 3009-573.)
Further: TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 21 - CIVIL RIGHTS SUB-
CHAPTER I - GENERALLY Sec. 1994. Peonage abolished The holding of any person to service or labor under the

11
system known as peonage is abolished and forever prohibited in any Territory or State of the United States; and all
acts, laws, resolutions, orders, regulations, or usages of any Territory or State, which have heretofore established,
maintained, or enforced, or by virtue of which any attempt shall hereafter be made to establish, maintain, or enforce,
directly or indirectly, the voluntary or involuntary service or labor of any persons as peons, in liquidation of any debt
or obligation, or otherwise, are declared null and void. -SOURCE- (R.S. Sec. 1990.)

NOTICE TO: Courts of First Instance to Justiciability of Issues

Public Policy arises in contradistinction to the rule of law:

In the dicta of the cases is found and discovered: Northern Pipeline Construction Co. v Marathon
Pipeline Company and United States, 458 US 50; 73 L. Ed 2d 598, 102 S Ct 2858 (1982) wherein the Justices
White and Powell agreeing with Chief Justice Burger admitted that the administrative agencies were in fact
legislative tribunals.The Justices stated:
"The plurality concedes that Congress may provide for initial adjudication's by Article 1 courts or
administrative judges of all rights and duties arising under otherwise valid federal laws. The word debt as used by
the Act is not confined to its technical common law meaning, but ... extends to liabilities arising out of breach of
contract ... to torts ... and to taxes owing to the United States or state or local governments. ... Every such claim must
be filed and its validity is subject to adjudication by the bankruptcy court. The existence and validity of such claims
recurringly depend on state law.
"The complicated and contradictory history of the issues before us leads me to conclude that Chief Justice
Vinson and Justice Harlan reached the correct conclusion: There is no difference in principle between the work that
Congress may assign to an Article 1 court and that which the Constitution assigns to Article III courts. Unless we
want to overrule a large number of our precedents upholding a variety of Article 1 courts that go by the
contemporary name of 'administrative agencies" -- this conclusion is inevitable."
The Supreme Court then held virtually the same discussion regarding Article III and Article 1 courts again
regarding public versus private rights and came to the same conclusion in the Granfinanciera v Nordberg; 492 US
33, 106 L Ed 2d 26, 109 S Ct 2782 (1989) decision.

CAV EAT

NOTE: In State Farm Fire & Cas. v. Reuter, 299 Or 155, 159-60, 700 P2d 236 (1985) (A criminal
conviction may conclusively establish that an insured engaged in "intentional" conduct, thus triggering an insurance
policy exclusion for intentional acts.); Ledford v. Gutoski, 319 Or 397, 401, 877 P2d 80 (1994) ("Injuries resulting
from intentional acts are excluded from insurance coverage when the insured intended to cause the particular injury
or harm, as opposed to merely intending the act."); State Farm Fire & Cas. v. Parker, 98-1612-L2; CA A105977
(Or. 05/24/2000) ("intentional" conduct thus triggering an insurance policy exclusion for intentional acts); cf. 15
U.S.C. § 1012 (Regulation by State law; Federal law relating specifically to insurance; applicability of certain
Federal laws after June 30, 1948); see "Wager [tontine] Policy;" and
In Barke v. Maeyens, Jr. M.D., 00CV0012; A111121 (Or. 09/12/2001) ("[T]he history of the remedy
clause indicates that its purpose is to protect absolute common-law rights respecting person, property, and
reputation, as those rights existed when the Oregon Constitution was drafted in 1857. The means for protecting
those rights is the mandate that remedy by due course of law be available in the event of injury. Until 1935, this
court's case law was consistent with that historical purpose. In Perozzi, this court erroneously relied on the United
States Supreme Court's interpretation of the Equal Protection Clause of the Fourteenth Amendment to the United
States Constitution in Silver to hold that Article I, section 10, does not forbid the legislature from abolishing
absolute rights respecting person, property, or reputation that existed when the Oregon Constitution was adopted."
Id. at 118-19. The court disavowed its line of cases based on the Perozzi rationale and concluded that "[t]he
legislature lacks authority to deny a remedy for injury to absolute rights that existed when the Oregon Constitution
was adopted in 1857." Id. at 119, citing Mattson v. Astoria, 39 Or 577, 580, 65 P 1066 (1901). Among the cases
disavowed by the Supreme Court in Smothers are Sealey and Josephs, on which defendant relied in the trial court
and in this court for the proposition that the statute of ultimate repose contained in ORS 12.110(4) does not violate
Article I, Section 10; and
In National Mutual Insurance Company of the District of Columbia, 337 U.S. 582, 93 L.Ed. 1556 (1948)
states that citizens of the District of Columbia [UNITED STATES] are not embraced by the judicial power under
Article 3 of the Constitution for the United States of America, the same statement is held in Hepburn Dundas v.

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Elizey, 2 Cranch (U.S.) 445, 2 L.Ed. 332.; In 1804, the Supreme Court, through Chief Justice Marshall, held that a
citizen of the District of Columbia was not a citizen of a state:
"We therefore decline to overrule the opinion of Chief Justice Marshall, and we hold that the District of
Columbia is not a state within Article 3 of the Constitution. In other words cases between citizens of the District and
those of the states were not included of the catalogue of controversies over which the Congress could give
jurisdiction to the federal courts by virtue of Article 3. In other words Congress has exclusive legislative jurisdiction
over citizens of Washington District of Columbia and through their plenary power nationally covers those citizens
even when in one of the several states as though the district expands for the purpose of regulating its citizens
wherever they go throughout the states in union. But see: "savings to suitor's" clause, Section 9, and applicable
Sections 11 and 13, 1 Stat. 73, Approved C.E. September 24, 1789; and

Covenant: ADDENDUM IV

"My Trusts (Ezekiel 48:11)," and in I Timothy 6:9 and Hebrews Chapter 9 we are further admonished to guard these
Sacred Trusts. Trusts are in effect "settlements," the operation of which cannot come into existence without the death of the
Testator. ALL COVENANTS RUN WITH THE LAND, jus soli.
Ezekiel 44:6-8 (FF) "Son of Adam! fix your heart, and observe with your eyes, and listen with your ears to all that I
may say to you;--to all the rules of the EVER LIVING'S Temple, and to all its forms, and fix in your minds the passages of
the structure, and all the gangways of the Sanctuary, and tell the rebels of the House of Israel, Thus says the MIGHTY
LORD:--You have added to yourselves, beyond all your depravities, House of Israel, the bringing in of foreigners of filthy
mind, and filthy body, to reside in my Sanctuary, to defile My Temple! and you allow them to present My bread, and fat, and
blood, and break My covenant by all your depravities. You have also not guarded My Sacred Trusts,--but have appointed
Guardians of My Trusts from yourselves in My Sanctuary!;"
A Warning to Israel: Ezekiel 33:1-5. "The command of the EVER-LIVING came again to me to say:--Son of
Adam, speak to the children of your people and say to them, 'When I bring a sword against a country, and take a man of that
country to its borders, and appoint him as a watchman for them, and he sees the sword coming to the country, and blows his
trumpet, and arouses the People,--whoever hears the sound of the trumpet and does not take warning, but the sword
approaches and seizes him,--his blood will be upon his own head. He heard the sound of the trumpet, and did not take
warning,--his blood will be upon himself, since he had been warned to protect his life;"
In Ezekiel 48:11 is found a most interesting message: "And it shall be consecrated to the EVER-LIVING amongst
you, for the consecrated priests of the descendants of Zadok, who guarded My Trusts,--who did not revolt to the depravities
of the children of Israel, when the Levites revolted. Consequently the boundaries of the Grant, granted from the land, shall
be most sacred to you." Compare: Exodus 20:12. This is a covenant (contract) running with the land. The very land you
must live and survive on;
At I Timothy 6:20 we find: "Timothy, guard the trust; avoid the common frivolties and objections of the false
philosophy, which some proclaiming, have, as to the faith, missed the mark. Grace be with you;"
At Hebrews 9:15-21 we find: "And by means of this He is an intermediary of a new settlement; so that as death was
made for redemption from transgressions under the first settlement, those called for eternal inheritance might receive the
promise. For where there is a settlement, it is necessary that the settlor should have been carried off by death; because a
settlement comes into force after death, for it never has effect while the settlor lives. Whence neither the former was renewed
without blood; for every command of the law having been repeated by Moses to all the people, he, taking the blood of bulls
and goats, with water, and scarlet wool, and hyssop, sprinkled the book itself, as well as all the people, saying: THIS IS THE
BLOOD OF THE SETTLEMENT WHICH GOD HAS CONCLUDED WITH YOU;"
Proverbs 1:7 The fear of the LORD is the beginning of knowledge: but fools despise wisdom and instruction;
Galatians 6:7 Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap;
Deuteronomy 11:16 Take heed to yourselves, that your heart be not deceived, and ye turn aside, and serve other
gods, and worship them;
Haggai 2:8 The silver is mine, and the gold is mine, saieth the LORD of hosts;
Exodus 20:17 Thou shalt not covet thy neighbor's house; thou shalt not covet thy neighbor's wife, nor his
manservant, nor his maidservant, nor his ox, nor his ass, nor anything that is thy neighbor's;
1 Tm: 6:10: For the love of money is the root of all evil: which while some coveted after, they have erred from the
faith, and pierced themselves through with many sorrows;
Ecclesiastics 21:8 (Septuagint - Apocrypha), "He that buildeth his house with other men's money is like one
that gathereth himself stones for the tomb of his burial;"
Romans 13:8, "Owe no man any thing, but to love one another:"

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 Even the Supreme Court has been able—at one time—to comprehend the significance of this. Bronson v.
Rodes, 74 U.S. (7 Wall.) 229, 248-49 (1869).

f i n i s

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