H-902                _______________________________________________

                                                    HOUSE BILL NO. 855

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Winsley, Lux, Crane, Sanders, J. Williams, Fuhrman, Bumgarner, Amondson, Ballard, B. Williams, L. Smith, Todd, Chandler, Nealey, Baugher and D. Sommers

Read first time 2/11/87 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to the federal reserve system; creating new sections; and providing for submission of this act to a vote of the people.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     (1) A sound money system is absolutely vital to a free people.  Symptoms of an unsound money system abound:  Budget deficits, recurring recession cycles, farm foreclosures, business bankruptcies, bank, savings and loan, and insurance company failures, trade deficits, and dramatic fluctuations in interest rates, inflation levels, and unemployment statistics.  These represent a clear and present danger to the people and to the government of the state of Washington and the United States of America.

          (2) The Federal Reserve Act of 1913, and other acts of Congress, purport to delegate the nation's monetary authority to the Federal Reserve System, with no oversight or control by any elected body or official.  The Federal Reserve Board is assumed to have the power to create money and thus exercise absolute control over the economic activity of this nation, whereas the United States Constitution nowhere authorizes Congress to delegate such power.

          (3) The Federal Reserve Act of 1913, and other acts of Congress, purport to delegate authority, without oversight or control, under which large, private United States multinational banks have made unrestricted loans all over the world which, now in danger of default, threaten the United States of America with a collapse of its whole banking structure.

NEW SECTION. Sec. 2.     It is hereby the declared intent of the state of Washington, and the counsel appointed by the legislature is hereby directed, to cause to be filed in the original jurisdiction of the supreme court of the United States:  (1) An action challenging the constitutionality of the delegation to the federal reserve system of the power to create money, and thus the power to exercise absolute control over the economic activity of this nation, and (2) an action challenging the delegation of authority without oversight, under which large, private multinational banks have made unrestricted foreign loans which, if they default, threaten the United States of America with a collapse of its whole banking structure.

NEW SECTION. Sec. 3.     This act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.