e$: More fun with cash: Senate Bill 307
Has anyone heard about this bill? Comments? Cheers, Bob Hettinga
From: glasgow@geoserv.isgs.uiuc.edu (Mary.Glasgow) Subject: Senate Bill 307 2-tier Money System Date: 31 Aug 1995 13:54:45 GMT Organization: University of Illinois at Urbana Summary: Senate Bill 307 2-Tier Money System Keywords: Senate Bill 307 2-Tier Money System
In the Senate of the United States, January 30, 1995, Mr. Leahy introduced the following bill, which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
...for purposes of brievty, I will quote only from sections (c) Currency Exchange and (d) Domestic Use and Nondomestic Use Currency.
(c) Currency Exchange-- (1) Plan--Not later than 12 months after the date of enactment of this section, the Secretary shall devedlop and begin implementation of a plan to require the exchange of all existing $100 denomination United States currency held within and outside of the United States for $100 denomination domestic use and nondomestic use United States currency issued in accordance with this sectin.
(2) Exchange Requirements--The plan established under paragraph (1) shall require the currency to be exchanged-- (A) at financial institutions regulated under United States law and subject to United States currency transaction reporting and other money laundering deterrence requirements; or (B) at financial institutions that the Secretary finds, because of treaty obligations, other provisions of law, or other agreements, are required to report significant transactions in United States currency to the United States Treasury, and abide by such obligations. (3) 6-Month Exchange Period-- (A) In general--During the period beginning on the date that is 12 months after the date of enactment of this section and ending on the date that is 18 months after that date of enactment, the Secretary shall permit the exchange of circulating $100 denomination United States currency for equal numbers of the domestic use and nondomestic use $100 currency issued in accordance with this section at institutions described in paragraph (2). (B) Non-Negotiability--Except for claims pursuant to subsection (e), beginning on the dat that is 18 months after the date of enactment of this section, the United States Treasury shall not recognize $100 denomination United States currency issued prior to the date that is 12 months after the date of enactment of this section as constituting a negotiable claim against the United States Treasury, and such currency shall not constitute legal tender for any debts, public or private.
(d) Domestic Use and Nondomestic Use Currency--Beginning on the date that is 18 months after the date of enactment of this section-- (1) domestic use currency, issued in accordance with this section shall be recognized as constituting a negotiable claim against the United States Treasury only when presented within the United States, and shall constitute legal tender for any debts, public or private, only when presented in the United States, but such currency may be exchanged for equal values of $100 denomination nondomestic use currency (or other United States currency) only at financial institutions regulated by United States law and subject to United States currency transaction reporting and other money laundering deterrence requirements; and (2) nondomestic use currency shall be recognized as constituting a negotiable claim against the United States Treasure, and legal tender for any debts, public or private, only when presented outside of the United States, but such currency may be exchanged for equal values of $100 denomination domestic use currency (or other United States currency) at financial institutions regulated by United States law and subject to United States currency transaction reporting and other money laundering deterrence requirements.
----------------- Robert Hettinga (rah@shipwright.com) Shipwright Development Corporation, 44 Farquhar Street, Boston, MA 02131 USA (617) 323-7923 "Reality is not optional." --Thomas Sowell
Phree Phil: Email: zldf@clark.net http://www.netresponse.com/zldf <<<<<
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SANDY SANDFORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C'punks, On Mon, 4 Sep 1995, Robert Hettinga wrote:
Has anyone heard about this bill? Comments?
(c) Currency Exchange-- (1) Plan--Not later than 12 months after the date of enactment of this section, the Secretary shall devedlop and begin implementation of a plan to require the exchange of all existing $100 denomination United States currency held within and outside of the United States for $100 denomination domestic use and nondomestic use United States currency issued in accordance with this sectin.
. . .
(1) domestic use currency, issued in accordance with this section shall be recognized as constituting a negotiable claim against the United States Treasury only when presented within the United States, and shall constitute legal tender for any debts, public or private, only when presented in the United States, . . .
(2) nondomestic use currency shall be recognized as constituting a negotiable claim against the United States Treasure, and legal tender for any debts, public or private, only when presented outside of the United States, . . .
It's obvious that this bill has very little to do with large-scale money laundering, narcotrafficking nor terrorism. All those folks will simply use "domestic use currency" inside or outside of the United States. At worst, it will cause them a one-time problem. Then at whom is the bill really aimed? Average, middle-class Americans, is my guess. Fortunately, it doesn't look too tough to get around. If you have a matress full of C-notes, I suggest you start using them to buy travelers checks--including a few denominated in strong foreign currencies. S a n d y ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
On Mon, 4 Sep 1995, Sandy Sandfort wrote:
Date: Mon, 4 Sep 1995 11:35:20 -0700 (PDT) From: Sandy Sandfort <sandfort@crl.com> To: Robert Hettinga <rah@shipwright.com> Cc: cypherpunks@toad.com Subject: Re: e$: More fun with cash: Senate Bill 307
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SANDY SANDFORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C'punks,
On Mon, 4 Sep 1995, Robert Hettinga wrote:
Has anyone heard about this bill? Comments?
(c) Currency Exchange-- (1) Plan--Not later than 12 months after the date of enactment of this section, the Secretary shall devedlop and begin implementation of a plan to require the exchange of all existing $100 denomination United States currency held within and outside of the United States for $100 denomination domestic use and nondomestic use United States currency issued in accordance with this sectin.
. . .
(1) domestic use currency, issued in accordance with this section shall be recognized as constituting a negotiable claim against the United States Treasury only when presented within the United States, and shall constitute legal tender for any debts, public or private, only when presented in the United States, . . .
(2) nondomestic use currency shall be recognized as constituting a negotiable claim against the United States Treasure, and legal tender for any debts, public or private, only when presented outside of the United States, . . .
It's obvious that this bill has very little to do with large-scale money laundering, narcotrafficking nor terrorism. All those folks will simply use "domestic use currency" inside or outside of the United States. At worst, it will cause them a one-time problem.
Then at whom is the bill really aimed? Average, middle-class Americans, is my guess. Fortunately, it doesn't look too tough to get around. If you have a matress full of C-notes, I suggest you start using them to buy travelers checks--including a few denominated in strong foreign currencies.
Actually it was aimed at the rumors that Iran had been printing U.S. currency on a large scale and using it abroad. When I say Iran, I mean a government backed program. New York Times had an article on the matter last year. With enough interest I will try to Lexis/Nexus it. While there was some evidence that Iran had indeed been forging notes, the extent was unclear/minimal. Of course, with this kind of rumor there is the issue of confidence in the currency as well as actual threat. The first response was the inset of the polyester and foil thread in the bills (and NO they can't detect quantity as you go through airport sensors, and don't ask me again). The foreign traveller will notice the serious scrutiny all U.S. bills abroad will receive, particular attention paid to the presence of the strip. Many foreign shops will not take U.S. bills which are older and have no strip as a result. This new plan, which is total lunacy of course, and which I expect to fail, but the real zap is on anyone with a spare million in counterfeit or undeclared currency. I might add, try being a tourist in Estonia and presenting U.S. bills that are no good in the U.S. You'll be about as popular as someone in the Midwest with Canadian bills.
S a n d y
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participants (3)
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Black Unicorn -
rah＠shipwright.com -
Sandy Sandfort