In the fall of 2002, USC Title 18, Section 486 came under close scrutiny and review by the Liberty Dollar community and its attorneys. The outcome was a public DISCLAIMER, that acknowledged that the one ounce Gold and Silver Libertys were not in violation of federal law and particularly Section 486. So, I hope by this time that everybody knows the Gold and Silver Libertys are not "legal tender". Nor are they "coins", as a "coin" is something issued by a government and we are not they, nor do we ever want to be. The fact that the "Libertys" cannot be described in these terms has been enshrined in the United States Code, so it is not just numismatic, it is the law. And as the government also defines "money" and "current money", the Gold and Silver Libertys are neither of these.
There are three key points to keep in mind when researching this page: First when 486 was passed on June 8, 1864, the United States was embroiled in Civil War, legal tender was instituted, specie as payment was all but suspended, the new Greenbacks were not convertible to gold and silver. So the intent of the law was primarily a counterfeit statue. The key point is that it only deals with metals. It does not include paper currency nor digital currency. That is why the Disclaimer below mentions ONLY the one ounce Gold and Silver Libertys by name. And third the government has redefined money and current money and now specifically excludes gold and silver as money. And finally, even if the circumstances, legitimate intent, or metals were not enough, we publicly disclaim any intent to misrepresent the Gold and Silver to be anything but examples of the goods stored in the warehouse as required by law.
Drawing upon our ongoing legal and monetary research, USC Title 18, Section 486, dates from the time of the War between the States. Section 486 was originally known as the Act of June 8, 1864, which came about shortly after the first legal tender laws were passed, when Lincoln ushered in the country's first fiat "greenback" currency and drove all specie out of circulation. The Act was revised in 1873, 1909 and 1948. The current statute states:
Section 486: Uttering coins of gold, silver or other metal Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined not more than $3,000 or imprisoned not more than five years, or both. June 25, 1948, c. 645, 62 Stat. 709.
Upon careful review of all cases pertinent to Section 486, it is the opinion of our lead attorney that the Gold and Silver Libertys distributed by NORFED are not in conflict because they are not "coins", nor are we circulating them as "money" as defined by the government. Please continue to refrain from referring to Gold and Silver Libertys as "coins", "money" or "current money". We can continue to refer to The Liberty Dollar as "real money" and/or "currency" because Section 486 only applies to metal; it does not apply to paper warehouse receipts, nor digital currencies. In fact, Section 486 actually reinforces our original position on these two items.
Based on independent legal research and the Legal Opinion Letter by our lead attorney, Section 486 is largely based on "intent". So upon advice of counsel, NORFED hereby issues this disclaimer to officially state that it is not the intent of the Gold and Silver Libertys to be in conflict with federal law. Please note the Disclaimer that follows and which is now posted on the Liberty Dollar web site.
"Gold and Silver Libertys are neither legal tender, money, "current money" nor coins; they do not resemble nor appear to be coinage minted, issued, authorized, or approved by any government agency; and do not relate to taxation or avoidance of taxation. They are privately minted one-ounce gold and silver examples of the goods on deposit for the warehouse receipts distributed by NORFED."
Henceforth, all Gold and Silver Libertys will be provided with the clear understanding that it is NORFED's intent that all Gold and Silver Libetys are provided as examples of the goods on deposit for the warehouse receipts distributed by NORFED. Of course, what you and thousands of other freedom loving, consenting adults choose to do in response to the government's fiat money is beyond NORFED's ability or duty to police.
Furthermore, all new Gold and Silver Libertys will carry the web site address and phone number to further brand them as advertising specialty items and examples only.
Please note that in keeping with our defensive position, NORFED does not disclose any of our legal research nor Legal Opinion Letters. Of course, you are welcome to do your own research, and we would welcome a copy of your findings relative towards our common goal. For an example of such private research, please click HERE for a 42 page report on the Research on the Legislative Intent and Case Law of 18 USC 486 by David Rostcheck North Bridge Training Institute, firstname.lastname@example.org 214-707-1004.