ALLIANCE FOR CITIZENS RIGHTS

 

 

HB49, from the 2002 legislative session, is another bill proposed by the cabal bent on rewriting the Alabama Constitution.  It would delete the following banking restrictions from the Constitution .

Sec. 247. Authority of legislature restricted.

The legislature shall not have the power to establish or incorporate any bank or banking company or moneyed institution for the purpose of issuing bills of credit or bills payable to order or bearer, except under the conditions prescribed in this Constitution.

 

Legislative Power Grab

Removintg this stipulation from the Constitution (the peoples document) places the authority to establish or incorporate any bank or banking company or moneyed institution under the jurisdiction of the legislature

Sec. 248. Banking laws to be general; specie basis; authority of banks to issue bills to circulate as money.

1. No bank shall be established otherwise than under a general banking law, 2. nor other than upon a specie basis; provided, that any bank may be established with authority to issue bills to circulate as money in an amount equal to the face value of bonds of the United States, or of this state, convertible into specie at their face value, which shall, before such bank is authorized to issue its bills for circulation, be deposited with the state treasurer or other depository prescribed by law, in an amount equal to the aggregate of such proposed issue, with power in such treasurer or depository to dispose of any or all of such bonds for a sufficient amount of specie to redeem the circulating notes of such bank at any time and without delay, should such bank suspend specie payment or fail to redeem its notes on demand.

 

 1. Removes the restriction of the “general law” application.  The legislature could pick and choose which banks it would allow to provide or offer difference services or set interest rates at different levels.

2.  Would allow a bank to authorize at the legislatures' discretion, the issuant of bonds or paper on any commodity or perceived commodity.  Example - local "mitigation credit" referenced in the Federal register.

Sec. 249. Bills or notes issued as money redeemable in gold or silver; laws not to sanction suspension of specie payments.

All bills or notes issued as money shall be at all times redeemable in gold or silver, and no law shall be passed sanctioning directly or indirectly the suspension by any bank or banking company of specie payment.

 

Removes the Constitutional restriction that "money shall at all times be redeemable in gold or silver." - in favor of what-ever the government would require you to accept.

Since the time that God stated in Genesis 13:2&3 that:" And Abram went up out of Egypt, he, and his wife, and all that he had, and Lot with him, into the south. Abram was very rich in cattle (rolling stock - assets), in silver, and in gold. And he went on his journeys from the south even to Bethel, to the place where his tent had been at the beginning, between Bethel and Hai;" currency throughout the world has been gold, silver and assets. 

When governments dilute gold or silver by alloying other metals or issued paper as currency the result has been disastrous – inflation – currency devaluation.

The lesson from this text that deserves our undivided attention is that Abram was able to sell the rights to his property along with unneeded goods and take his worldly wealth with him.  Try selling all that you own and transporting the currency across the border and see how far you get in today’s society.

 

Sec. 251. Duration of corporations not limited; renewal of existing charters not required.

There shall be no limit of time for the duration of a corporation hereafter organized as a bank or banking company, and it shall not be necessary hereafter to renew or extend the life or charter of any such corporation now existing. And all extensions of the life or charter of any such corporations are hereby ratified and confirmed. (As amended by Amendment 51; Proposed by Acts 1943, No. 506, submitted at the Nov. 7, 1944, election, and proclaimed ratified Nov. 17, 1944, Proclamation Record, Vol. F, p. 379).

 

 Banks or banking companies that currently exist would no longer have the governmental assurance that their business license is secure.  The legislature could, after this restriction is removed, deny the renewal of a bank charter for any reason or no reason at all.

Sec. 252. Maximum rate of interest.

No bank shall receive, directly or indirectly, a greater rate of interest than shall be allowed by law to individuals for lending money.

 

 Lifting this Constitutional restriction would grant to the legislature a free hand to control the interest rate that banks charge.

Sec. 253. State and political subdivisions thereof not to be stockholders in banks or lend credit thereto.

Neither the state nor any political subdivision thereof, shall be a stockholder in any bank, nor shall the credit of the state or any political subdivision thereof be given or lent to any banking company, association, or corporation.

 

 Lifting this Constitutional restriction allows ALL subdivisions of the State including public private partnerships to throw your tax dollars or your debt (bonds, etc) into whatever money pit the officials can think of.  Officials are protected against lawsuits.  This would create the biggest pork swill in the history of this country.

Sec. 254. Examination of banks by public officers; semiannual reports by banks.

The legislature shall by appropriate laws provide for the examination, by some public officer, of all banks and banking institutions and trust companies engaged in banking business in this state; and each of such banks and banking companies or institutions shall, through its president, or such other officer as the legislature may designate, make a report under oath of its resources and liabilities at least twice a year.

 

 Removes all governmental oversight of banks and banking companies.

Sec. 255. Applicability of article.

The provisions of this article shall apply to all banks except national banks, and to all trust companies and individuals doing a banking business, whether incorporated or not.

 

 Removal of this Section would grant to the legislature the authority to apply at its' discretion, the tenets of the banking Article (13) to a broad category of moneyed institutions - whether incorporated or not.