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This is the Dr. Beter AUDIO LETTER(R), 1629 K St., NW, Washington, DC
20006

   Hello, my friends, this is Dr. Beter. Today is January 20, 1981,
and this is my AUDIO LETTER(R) No. 61.

   It's been about a month and a half now since I recorded AUDIO
LETTER No. 60 at the end of November. Beginning with this issue No.
61, I plan to record my AUDIO LETTER on a slightly more flexible
schedule. I still plan to record a message roughly once a month, but
from now on I want to tie my schedule more to events and less to the
calendar. After all, the AUDIO LETTER is recording history in the
making. Sometimes the end of the month arrives just as a major story
is breaking, either in public or behind closed doors. From now on when
that happens, I may well delay for a few days to give you a more
complete story. On other occasions it may work the other way, speeding
up my AUDIO LETTER schedule. All of this will have no effect on your
subscription. You will receive all the issues you paid for no matter
when they are released; so I hope that with a more flexible schedule I
will be able to serve you better than ever before because, my friends,
events are building toward a climax.

   Since I spoke with you last, the world was shocked, saddened, and
angered by a seemingly senseless murder in New York City. The victim
was the former Beatle and rock star John Lennon. Lennon was fond of
saying that a rock star can say things without being killed for it;
and after five years out of the public eye, Lennon was going back to
work--not because he needed the money but because he had things to
say. But the things he had to say this time, my friends, would have
caused trouble for those who are maneuvering us into nuclear war; and
so a former fan of his was turned into a psychologically-programmed
assassin. This was done using the techniques I made public over five
years ago in AUDIO LETTER No. 5. And on the eve of his return to
public life, John Lennon was silenced.

   My friends, lawless forces are destroying our way of life. They
have spawned a soaring crime rate about which many of you have written
to me asking questions. If you want to understand how these lawless
forces affect you personally, there's a new book I would like to
recommend to you. The author is a highly respected business
consultant, Mr. Fred Muller. His book is titled: "America's Coming
Nightmare Inflation, Economic Collapse, and Crime Revolution." The
price is $10.00 postpaid, and you can order it directly from:

  Fred Muller
  P.O. Box 11909, Columbia, SC 29211.

   If we sit idly by and let it happen, these forces of lawlessness
will sweep away everything that is dear to us. They are destroying our
money and our economy, robbing us of our hard-won assets. They are
making many fear for their own lives when they walk the streets; they
are perverting our laws, and corrupting our lawmakers; and they are
working night and day to betray us into the insanity of nuclear war.

   But there is something we can do. Last July 1980 I began answering
your questions about what you can do; and because so many of you have
responded with action, I will continue to tell you more. We are making
progress; and if we do not lose heart, I am convinced that we are
going to win.

   My three special topics for this AUDIO LETTER are:

Topic #1--THE LEGAL SABOTAGE OF THE REAGAN TRANSITION Topic #2--THE
FORFEITED OPPORTUNITY OF SENATOR WILLIAM PROXMIRE Topic #3--THE GOLDEN
SWINDLE OF THE FEDERAL RESERVE BANKS

Topic #1--Two months ago America was buzzing over the great surprise
landslide in the name of Ronald Reagan. There were all kinds of upbeat
promises to "hit the ground running." But the transition to a new
Administration has actually done just the opposite. First, the early
choices for several Cabinet positions fell apart. People who had
appeared interested suddenly just backed out. Meanwhile the job of
filling lower echelon positions became even worse. Instead of "hitting
the ground running", the Transition Team was wading through a swamp.
Weeks ago the Transition Team exhausted its Government money and had
to start asking their corporate friends for donations to stay in
business. Puzzled reporters and columnists have been scratching their
heads over it all. Veteran Washington watchers can tell something is
wrong. They can sniff it in the air. And for public consumption, the
so-called "Reagan Team" has tried to blame it all on the "Ethics in
Government Act" of 1978. But, my friends, that is not the real
problem. Something much more far-reaching is involved. The fact is
that the new Administration has been virtually locked out by the
Bolsheviks in bureaucratic power here.

   The symptoms of this unprecedented situation are growing on all
sides. For example, a few days ago on January 12, the New York Times
carried an article with the headline: "CAMPAIGN AIDES FOR REAGAN FEAR
THEY ARE LEFT OUT." The article said, quote: "The Reagan transition
aides now expect to have only about 50 upper-level officials chosen by
the time Mr. Reagan is sworn in on January 20" and this is in
connection with, quote "filling of the 400 jobs considered essential
for the control of the bureaucracy." In other words, my friends,
Reagan aides were saying that the bureaucracy would still be beyond
their control as of today. And one more very significant quote: "To
the Reagan transition staff the current process of filling the
hundreds of jobs below the level of Cabinet officer is perhaps more
important than the filling of the Cabinet positions. The lower level
aides, they said, will be the ones actually carrying out Mr. Reagan's
policies."

   My friends, the power struggle for control of the United States
Government is continuing. I outlined that struggle in AUDIO LETTER No.
59 last October, and in AUDIO LETTER No. 60 I explained how the
Election surprise came about. But as I mentioned then, that was only a
mild setback for the Bolsheviks entrenched in powerful positions here
in Washington.

   The real problem which is confronting the alleged Reagan forces is
not in the news. It is a Supreme Court decision which was quietly
engineered by the Bolsheviks here on March 31, 1980. For the lawyers
among my audience, the case is that of Branti vs. Finkel. The citation
is: 445 U.S. 507 (1980).

   The case itself was unspectacular at first glance. A newly
appointed Public Defender in the New York County tried to dismiss two
assistants who were leftovers or holdovers from the other political
party; but the assistants filed suit to keep their jobs. The Supreme
Court upheld them in the Branti decision last March; and in the
process, the Court made new law by declaring that the same principle
applies at all government levels, including federal. That general
principle is that governmental employees cannot be dismissed simply
because of their political affiliation.

   The ramifications of this decision are stunning, my friends. They
were spelled out very well in the dissenting opinions under the names
of Justices Powell, Rehnquist, and Stewart. The dissenting opinions
are of many pages  long and naturally are filled with numerous detailed
citations and arguments. But let me read a few quotations to you which
speak for themselves, quote:

 "The Court today continues the evisceration of patronage practices."

And, quote:

 "With scarcely a glance at almost 200 years of American political
tradition, the Court further limits the relevance of political
affiliation to the selection and retention of public employees. Many
public positions previously filled on the basis of membership in
national parties now must be staffed in accordance with a
Constitutionalized Civil Service Standard that will affect the
employment practices of federal, state, and local governments."

And, quote:

 "Today's decision is an exercise of judicial law-making."

   My friends, almost since the founding of our Republic, America's
political system has depended upon patronage. Without patronage, your
vote means nothing at all. This fact is brought out in the dissenting
opinion of the Supreme Court itself in the words, quote:

 "Elected officials depend upon appointees who hold similar views to
carry out their policies and administer their programs. Patronage, the
right to select key personnel and to reward a party faithful, serves
the public interest by facilitating the implementation of policies
endorsed by the electorate."

   Thanks to the Supreme Court Branti decision, the new Administration
is having to take office with a bureaucracy that is beyond its
control. The Bolsheviks entrenched in key positions nation-wide at all
levels of government are immune to wholesale firing. Instead, they
have to be pried loose one by one based on non-political arguments.
Likewise, new appointees cannot be brought in just because they are
Republicans. The result is a quagmire, a government out of control.
The Corporate Socialists have for the moment succeeded in seizing the
White House under the banner of Ronald Reagan, but it is still the
Bolsheviks who control the Government.

   One result will be the opposite of the plans we are hearing for a
"hiring freeze." There will actually be duplicate hiring under various
disguises in order to get around the entrenched Bolsheviks. That will
lead to a mushrooming, inefficient government, and more government
spending, more bureaucracy--not less. And so, thanks to the
little-known Branti decision of the Supreme Court, the Bolsheviks here
still have a stranglehold on the United States government. The new
Administration will try everything to whittle away at their power; but
the Bolsheviks have no intention of letting themselves be whittled
very far. Before that can happen, they plan to cut short the new
Administration under the name of Ronald Reagan.

      THE FORFEITED OPPORTUNITY OF SENATOR WILLIAM PROXMIRE

Topic #2--For nearly six months now many of you have been joining me
in a preventive war of Truth. Ours is a war to turn aside the plans
for economic collapse, dictatorship, and thermonuclear war. To do
that, we are seizing the chief weapon of our enemies and turning it
against them. That weapon is the GOLD weapon. Those who have cornered
our gold and our money are using it to destroy our way of life; but
their giant GOLD weapon is also their Achilles' heel, because they
have broken laws and they have made mistakes. They have left a trail.
You and I are following that trail to track them down; and if we will
keep at it and not lose heart, I firmly believe that we are going to
win.

   As you know, we began our action campaign last summer with Senator
William Proxmire. At that time he was Chairman of the powerful Senate
Banking Committee. He will no longer be Chairman in the new Congress
because of the change from Democrat to Republican control of the
Senate; but Proxmire will remain on the Committee and he will continue
to exercise a great deal of power, so I want to bring you up to date
on our efforts with him.

   If you will recall, there were basically two things which we were
asking of Senator Proxmire. Our main request was that he launch a
public, honest investigation into the true status of America's alleged
gold supplies. We specifically asked him not to just accept the
self-serving words of the Treasury Department. The time is long over
due for proof, not words, so we wanted Senator Proxmire to press for
an impartial, independent, complete physical inventory. Either
America's gold is there, or it is not there; so I urged you to
challenge Senator Proxmire to prove Dr. Beter wrong. But we did not
expect Senator Proxmire to do all that out of a clear blue sky. Any
investigation as large as that must have a starting point; and so as a
preliminary step, we gave him that starting point. We asked him to
look into one very specific matter first. That was the matter of the
missing gold shipment from Fort Knox of January 20, 1965, the very day
Lyndon Johnson was inaugurated! Any truthful, independent inquiry
about that one shipment alone would raise questions that are far
broader in scope, and those questions would have led into the complete
investigation we are asking for.

   But what has the champion of the "Golden Fleece Award" done up to
now? First, consider the matter of the missing gold shipment which I
discussed in AUDIO LETTER No. 56. Proxmire has yet to launch an
independent investigation of any kind. Instead he started off by doing
what we asked him not to do. He asked for a report by the Treasury's
own Inspector General. Then he wasted months of precious time in
sending computerized brush-off letters in reply to your letters.
Following standard procedure in Washington today, he gave you nothing
but lip service. He kept promising you that as soon as he received the
Treasury report, he would decide what to do next.

   My friends, even when Proxmire did receive the worthless Treasury
report, he just sat on it. He was hoping that he could stall you until
you lost interest and went away. Proxmire never made the promised
report available until you insisted that he do so around early
December. The report of the Treasury's Inspector General carries a
hand-stamped date of September 30, 1980. It adds nothing new about the
missing shipment; instead it just expands on a 5-year-old letter of
Mrs. Mary Brooks, then Director of the United States Mint. I first
made that letter public in AUDIO LETTER No. 2 for July 1975.

   The Brooks letter of 1975 served only to multiply the questions
about the missing Fort Knox gold shipment. And the 1980 report by the
Treasury's Inspector General only muddied the waters still further. No
wonder Senator Proxmire tried to sit on the report for two months,
because it is an unsatisfactory report. As such it calls for Proxmire
to do his duty to dig deeper--and digging deeper is the one thing
Proxmire seems determined not to do.

   The missing gold shipment of January 20, 1965 is only one thread in
the giant web of scandal surrounding our missing gold, and Proxmire
has stubbornly refused even to take a glance at the giant scandal as a
whole. To show you what I mean, let me remind you of a letter to
Proxmire which I quoted in AUDIO LETTER No. 59 last October. It was
written by an acquaintance of Proxmire in Proxmire's home state of
Wisconsin. As an astute business man, he asked Proxmire some very
penetrating questions. This man has kept my good friend, Mr. Edward
Durell, informed about his correspondence with Proxmire. As a result,
I can give you the sequel to what I reported to you in October. It is
very revealing.

   To begin with, Proxmire never answered the letter from his friend
which I read to you. After a few weeks, Proxmire's friend wrote again.
He made it abundantly clear that he expected an answer. And answer
Proxmire did.

   Proxmire's letter dated December 3, 1980 begins with the words,
quote:

 "I have no record of having received your earlier letter concerning a
physical inventory of the nation's gold reserves. I have received a
great deal of mail regarding this issue, so I do apologize for the
oversight."

By the way, some of you have asked me how many people are joining in
our campaign, so now you have Proxmire's own words, not just mine,
that you have a lot of company. You are making yourself heard.

   But Proxmire spends the rest of the letter giving nothing but
excuses for refusing to do his duty. It is little more than a rehash
of things you have already heard, including factual errors. The letter
was so bad that his friend wrote again and picked it apart almost line
by line. But for you and me, there's no point in wasting any more time
on Proxmire right now.

   My friends, we gave Senator Proxmire the benefit of the doubt. He
has responded by forfeiting the opportunity to take the lead which
could have been his. Under British common law he would be considered a
traitor, so for now we will just go away and leave him alone. But
Proxmire will remain a powerful member of the Senate Banking
Committee. We may have occasion to deal with him again; but if we do,
my friends, it will be on very different terms.

Topic #3--Just after Christmas last month a big article about Fort
Knox began appearing in newspapers nation-wide. Alert listeners all
over the United States have sent me copies. The publicity
counterattack against our "preventive war of TRUTH" has now begun.

   The article had three basic points to get across. Two of these were
familiar from countless gold propaganda in the past. One of these old
familiar points was a rehash of the old myth about the impregnability
of Fort Knox. The officer in charge of the Bullion Depository, George
B. Wright, was photographed at attention outside the locked gates, and
there were quotes from him like: "This is the most secure facility you
will find anywhere. We are continually improving our security system"
and "We have tanks and personnel carriers standing by."

   A second familiar point of the long article was the standard
personal attack on me. My 1974 charges about our missing gold are
mentioned, but those are dismissed with a yawn, as quote: "Beter's
farfetched claim."

   But the third propaganda trick in the article was new. In AUDIO
LETTER No. 60 four weeks earlier I had reported, quote:

 "Watch for the non-existent gold reserves to be revalued at current
market prices. In terms of dollars, our fictitious gold reserves will
suddenly look 15 or 20 times bigger."

The Fort Knox newspaper article started the ball rolling. It never
mentioned the old official gold price of $42.22 per ounce which is
reflected in Treasury balance sheets. Instead, it hammers away at the
great increase in market prices of gold, and so our psychological
conditioning has now begun. We are being mentally set up for the gold
revaluation publicity stunt to come.

   In AUDIO LETTER No. 59 I discussed the way in which America's gold
reserves are listed on Treasury and Federal Reserve balance sheets. I
did that in order to call your attention to a little known but crucial
fact. Our gold is often referred to loosely in the press as the
"Treasury's gold" or the "government's gold", but that is not correct.
The gold actually belongs to the Federal Reserve System. The Treasury
only serves as a physical custodian for the Federal Reserve gold, and
the Treasury and the Federal Reserve balance sheets confirm that this
is the situation. If this sounds like a strange arrangement, you're
right. It is. But it was set up that way for a reason.

   Treasury custody of Federal Reserve gold created a situation of
mixed responsibility, and it enabled those lines of responsibility to
be blurred wherever convenient. This made it easier for those who
stole our gold to hide what they had done. Even so they have broken
laws and they have left a trail. The legal evidence is mounting that
points to the Treasury Department and the Federal Reserve Board of
Governors here in Washington as co-conspirators. The legal principle
involved is that of a pledge, misapplied in a wrongful and fraudulent
manner. And, my friends, you and I are not the only victims! By and
large the Presidents and Directors of the Regional Federal Reserve
Banks have also been victimized. They have been placed in positions of
enormous liability by the actions of the Board here in Washington, and
the evidence so far indicates that they do not realize what has been
done to them.

   What I want to do now is to outline the legal case that is taking
shape. Laws have been broken, and some very powerful men are destined
for prison! I know that I have many lawyers among my listeners, and it
is as a lawyer that I speak to you now; but I will also try to make my
comments as clear as possible for everyone. We are being forced to try
our case first in the "court of public opinion", and I will conclude
this topic with a new suggestion for action for you and for the
Regional Federal Reserve Banks.

   On December 3, 1974, then Secretary of the Treasury William Simon
testified before a Subcommittee of the House Banking Committee. The
Congressmen were asking about various details of the Treasury's
announced plans to start holding "gold auctions." The auctions were to
begin a few weeks later in January 1975. In the course of the
questioning, then Congressman John Conlan in Arizona asked:

 "Is the government gold owned by the Federal Reserve or is it owned
by the Treasury but the Federal Reserve has a mortgage-like interest
on that gold?"

Simon's answer included the words, and I quote:

"It is sort of a pledge."

   When Simon said those two words "sort of" he almost let the cat out
of the bag. Fortunately for him, Simon's slip of the tongue went
unnoticed at the time; and Government witnesses before Congress always
have a special privilege. It goes under the euphemism "correcting for
the record"--that is, a Government witness can revise his oral
testimony before it is printed by the Government Printing Office. So
the officially-published version of Simon's testimony was sanitized in
several places. Among other things, it omits those two incriminating
words "sort of" which Simon said. According to the officially
published version, Simon said to Congressman Conlan, quote:

 "Legally, I want to check with my attorney. Yes, it is the same. I
thought it was. It is a pledge."

Later in the same testimony Conlan asked Simon how the decision is
taken to sell gold. In his replies Simon said he took the decision to
the President; but he also claimed, quote:

 "I have the authority to do that."

Now, my friends, please notice something very important. The then
Secretary of the Treasury, William Simon, was questioned about sales
of Federal Reserve gold, and yet he never once made any mention of
obtaining Federal Reserve permission to do so! Instead he asserted
that the Treasury itself can sell the gold without asking anyone else,
not even the President. The only legal basis held out for this is the
claim that the gold is "a pledge."

   My friends, please bear with me now. There is an essential legal
point here which has to be made. Those who need to know about it most
urgently are the Officers and Directors of the Regional Federal
Reserve Banks, but I will need your help to bring this about. As I am
about to explain, the wool has been pulled over their eyes as well as
ours.

   When I use the word "conspiracy", I'm doing so in the strict legal
sense.

   A CONSPIRACY is the term which refers to any situation in which two
or more individuals join together to plan and execute a crime; and
that is exactly what the Federal Reserve Board, not the Banks, and the
Treasury have done.

   The key to it all is the legal concept of a pledge. For nearly 20
years now, the United States Treasury has been using a pretended
authority to sell Federal Reserve gold at will. That pretended
authority is based upon a claim which has been made to sound plausible
but is totally false. That claim is the Treasury's assertion that the
Federal Reserve gold is a pledge; or, as Simon really said, "sort of a
pledge." That is why Simon's testimony of 1974, which I just quoted,
was sanitized so carefully.

   To show you what has been done, first I should define what a pledge
is in law. First I will describe it in legal terminology because this
is a legal battleground. The Officers and Directors of the Regional
Federal Reserve Banks will have to take legal steps if they are to
save themselves. But  I also want to make sure everyone understands
what is involved, so I will try my best to give you examples of what I
am talking about.

   Legally, a PLEDGE is defined as a bailment or transfer of personal
property as a security for some debt or obligation. It is redeemable
on certain terms; but if the Debtor defaults on the contract, the
Creditor can sell the property which the Debtor has turned over to
him. In this situation, the debtor is called a pledgor because he is
pledging to pay or repay something. The creditor is called the
pledgee. He holds on to physical possession of the pledgor's property
until the pledge is satisfied.

   For a contract of pledge of property to exist, three elements must
be present:

(1) The pledgor must turn over possession of the property to the
pledgee; (2) Title to the property--that is, actual ownership--is
retained by the pledgor; (3) and this is essential: There must be a
lien of some sort against the property involved for payment of a debt
or performance of an obligation, and that debt or obligation must be
due the pledgee by the pledgor or some other person.

  For my fellow attorneys, just a reminder that a contract of pledge
is one form of hypothecation. Hypothecation, of course, is the
contractual power of a creditor over the property of a debtor to cause
the property to be sold to satisfy the debt. "Pledge" applies
specifically when the property of the debtor is physically handed over
to the creditor.

   Now let me come down to earth and give you an everyday example.
Suppose you needed some money and decided to pawn your gold watch. You
go to the pawnshop and physically turn over your gold watch to the
pawnbroker. In return, the pawnbroker gives you two things: He hands
you some money as a loan, and he also hands you a receipt for your
watch. Your pawn receipt gives you the legal right for some period of
time to go back in and redeem your watch. That is, if you want your
watch back, you give the pawnbroker the receipt plus the money you
borrowed plus some interest.

   My friends, a pawn transaction like this is a contract of pledge.
You are the debtor because he has loaned you money. He keeps your
watch in his possession as security for your loan. During the
redemption period you have the right to get your watch back if you pay
the loan; but if you do not repay the loan by a certain deadline, you
default on your loan. The pawnbroker may then sell your watch.

   Now then, my friends, the United States Treasury claims that a
similar arrangement applies to the Federal Reserve gold. The property
at issue is America's entire monetary gold hoard instead of a gold
watch; but they claim that the same principle applies, that the gold
is "a pledge." In effect, the Treasury thereby claims to be in the
position of a giant pawnbroker. By referring to the gold as "a
pledge", the Treasury has claimed in effect that the Federal Reserve
System pawned the gold. Can you imagine? Beyond that, the Treasury is
behaving as if the Federal Reserve System had defaulted in some way.
The Treasury has disposed of most all of the Federal Reserve gold,
just like a pawnbroker; and this has been done without even notifying
11 of the 12 Regional Federal Reserve Banks! The Federal Reserve Board
of Governors right here in Washington knew about it, so did certain
people at the New York bank, but they have left the other 11 Regional
Banks in the dark.

   My friends, the United States Treasury pretends to have the
authority to sell off the Federal Reserve gold at will. That is what
William Simon, who parades today as the darling of the Conservatives,
said as Treasury Secretary in 1974. This pretended authority to get
rid of our gold is based on the Treasury's contention that it is "a
pledge." But is it? Or was it ever really a pledge? The Treasury's
claim does not make it so all by itself. That famous quotation of
Abraham Lincoln applies just as well now as it did in AUDIO LETTER No.
59: "A flower does not become a rose just because I call it a rose."

   I will now point out some facts which prove that the Treasury's
possession of the Federal Reserve gold was never on the basis of a
pledge.

   The Treasury's pretended authority to sell the gold is completely
fraudulent, and there has been collusion between the Treasury and the
Federal Reserve Board here in Washington. As a result, 11 of the 12
Regional Federal Reserve Banks have been swindled. They are claiming
assets--gold assets--in the mistaken belief that those assets still
exist.

   To trace the true status of the Federal Reserve gold, we need to go
back to the beginning--in 1933 and 1934. On March 4, 1933, Franklin D.
Roosevelt was inaugurated President for his first term. The very next
evening just before midnight he declared a "National Emergency." He
proclaimed a week-long Bank Holiday, closing all banks and placing an
embargo on gold payments. Then the Treasury Secretary, William H.
Woodin, made a public statement to quiet the fears of the people. He
said, quote:

 "It is ridiculous and misleading to say that we have gone off the
Gold Standard any more than we have gone off the Currency Standard. We
are definitely on the Gold Standard. Gold merely cannot be obtained
for several days."

   But they always lie, my friends. The Treasury Secretary said it
would be just a few days, but IT WAS 42 YEARS before Americans would
regain the right to own gold, because only four (4) days after he
spoke, on March 9, 1933, the "National Banking Emergency Act" was
rushed into law. Under that Act, American citizens were forced to turn
in all of their gold. It was collected by the Federal Reserve System
at the old bargain price of $20.67 per ounce.

   Despite those soothing words of the Treasury Secretary only days
before, America was off the Gold Standard. The Act also authorized the
Treasury Secretary to instruct the Federal Reserve to deliver its gold
into possession of the Treasury. The Treasury Secretary did issue
those instructions on January 17, 1934, but the 1933 Law did not take
title of the gold away from the Federal Reserve. It only required that
it be physically held by the Treasury for safekeeping. Finally, the
"Gold Reserve Act" of 1934 was passed on January 30 of that year.
Section 2-A of the Act says, quote:

 "Upon the approval of this Act, all right, title, and interest in
every claim of the Federal Reserve Board of every Federal Reserve Bank
and of every Federal Reserve Agent in and to any and all gold coin and
gold bullion shall pass to and are hereby vested in the United
States."

   My friends, that sounds ironclad, doesn't it? It sounds as if the
Treasury took over ownership of the gold from the Federal Reserve, but
the fact is that it was only a pretended transfer.

   On January 24, 1934, six (6) days before the Act was passed, one
brave Congressman tried to expose the entire ruse. He was a bitter
enemy of the Federal Reserve System, and on the floor of Congress he
gave a speech that revealed exactly what was afoot. Describing the
provisions of the Act for the gold transfer, then Congressman Louis T.
McFadden said, quote:

 "It provides that the United States Government shall give the Federal
Reserve Board and the Federal Reserve Banks new Gold Certificates to
the full value of the loot. The Gold Certificates will give the
Federal Reserve Board and the Federal Reserve Banks legal title to the
gold, and the United States Treasury will be nothing more than its
physical custodian. The Secretary of the Treasury will give the
Federal Reserve Banks gold for their new Gold Certificates whenever
they ask for it. It is a fraudulent transfer."

   The situation McFadden described is exactly what happened. The
Federal Reserve System owns the gold through its Gold Certificates,
the Treasury only acts as physical custodian; and this arrangement
has, in legal terms, been confirmed, ratified, and condoned by the
Federal Reserve and Treasury balance sheets for 46 years. It is the
fact, no matter what the words of the 1934 Act may seem to say; and
law, my friends, deals with the questions of fact, not just
assertions.

   Now let me return to the present-day claim of the Treasury that it
holds the Federal Reserve gold as "a pledge." That claim is in direct
contradiction to the Treasury's own balance sheets. As I detailed in
AUDIO LETTER No. 59, the Treasury is a debtor with regard to the gold,
while the Federal Reserve is the creditor; but if it were a pledge, as
claimed by the Treasury, the reverse would be true. The Treasury is
trying to turn day into night, and night into day, simply by calling
it "a pledge."

   That raises two questions, my friends.

(1) What pretended authority was the basis of Simon's 1974 claim that
the gold is "sort of a pledge"? (2) How could the Treasury get away
with this fraud?

   The answer to the first question is a June 30, 1961 Act of
Congress, the "Old Series Currency Adjustment Act." The citation is:
31 USC 912. The Treasury misled Congress in 1961 with the excuse that
it was to enable the retirement of a variety of old obsolete
currencies including certain Gold Certificates used as currencies, but
nowhere did the Act define the term "Gold Certificates." The real but
unstated purpose of the Act was to provide a pretended authority to
dispose of Federal Reserve gold. In fact, gold began leaving the
country under the "London Gold Pool Agreement" only three (3) months
later. By virtue of that Act, the Treasury pretends that the gold
became what Simon called "sort of a pledge." The Treasury claims a
right that it does not legally have to convert the gold to its own use
and give the Federal Reserve System nothing but paper money or
bookkeeping credits in exchange. In this way, the Federal Reserve
Banks have been swindled out of their gold bullion.

   That brings me to the second question. That is: How could the
Treasury get away with it? The answer involves collusion by the
Federal Reserve Board of Governors here in Washington.

   In AUDIO LETTER No. 59 I suggested that you write to the President
and Directors of the Federal Reserve Bank in your Region. I suggested
that you urge them to press for an independent, reliable, physical
inventory of the Federal Reserve gold in Treasury vaults. Based on the
replies of which you have sent me copies, a very significant pattern
has emerged. I do not include the New York bank in what I am about to
say, but the responding Chairmen and Presidents of the other 11
Regional Banks have said basically two things:

No. 1--Not one single Chairman or President of a Regional Federal
Reserve Bank says he has ever seen the gold or had it inventoried.
Instead to a man, they are all relying totally on the assurances of
the Treasury and their own Federal Reserve Board here in Washington.

No. 2--Not one single reply reflects a correct understanding of his
own enormous legal liability involving the gold. Every indication is
that they were never properly informed that they were taking on this
responsibility.

   My friends, I know this sounds astonishing, but the correspondence
demonstrating these two points is just too overwhelming to ignore. Let
me just read you a few quotes to show you what I mean.

From the Federal Reserve Bank of Atlanta, President William F. Ford
wrote, quote:

  "As you may know, I have no jurisdiction over the stock of gold at
Fort Knox. However I have discussed the issues that you raise with my
colleagues at the Federal Reserve Board in Washington."

From the Federal Reserve Bank of Boston, President Frank E. Morris
wrote, quote:

  "I have never had reason to doubt that the gold stock and shipments
have been properly accounted for."

From the Federal Reserve Bank of Kansas City, President Roger Guffey
wrote, quote:

  "I did not perform a physical count of all assets of the Bank at the
time I became president, nor have I conducted a physical inventory of
the nation's gold stock held by the United States Treasury Department.

   As I am sure you are aware, the nation's gold reserves are no
longer held by the Federal Reserve System but rather the title and
custody is held by the United States Treasury as a result of the 'Gold
Reserve Act of 1934.'"

From the Federal Reserve Bank of Philadelphia, Chairman John W. Eckman
wrote, quote:

  "While the 12 Reserve Banks and their Directors have a degree of
local autonomy, the questions you and Mr. Durell ask and the actions
you request are more logically in the province of the Board of
Governors."

From the Federal Reserve Bank of Dallas, President Ernest T. Baughman
wrote to my good friend, Mr. Edward Durell, quote:

  "With respect to the gold which underlies the Gold Certificates held
by the Federal Reserve Banks, I have made no effort to eyeball that
gold. I am prepared with no reservations whatever to accept the
representations of those government officials responsible for the gold
that they do in fact have it."

And from the Federal Reserve Bank of Richmond, President Robert P.
Black wrote, quote:

  "I would like to emphasize as strongly as I know how that neither
the Federal Reserve System nor the Federal Reserve Bank of Richmond
has custody or control of the gold stock of the United States."

Then he quotes the gold legislation of 1933 and 1934 which I discussed
for you earlier, and he concludes on that basis that, quote:

  "It seems clear to me that this legislation removes from the Federal
Reserve System any responsibility for the custody and control of the
gold stock of the United States."

   My friends, it is little wonder that the Chairmen and Presidents of
the Regional Federal Reserve Banks are so dangerously misinformed.
Their own legal responsibility for the gold is based not on custody
but on ownership. And as I have already established in detail for you,
that ownership is not open to dispute. It is reflected in the Gold
Certificates owned by the Federal Reserve Banks, but here is the
shocker: The 12 Regional Banks do not have those Certificates, even
though they are shown on their respective balance sheets as "Gold
Certificate Accounts."

   Where did all those certificates go? Here is the answer. I quote
now from a letter dated January 9, 1981 to my good friend Mr. Durell.
It was written by Robert P. Black, President of the Federal Reserve
Bank of Richmond, quote:

  "I am unable to send you a copy of the certificate you requested.
The 'Gold Certificate Account' shown on the balance sheets of the
Federal Reserve Banks is managed by the Board of Governors of the
Federal Reserve System in Washington, D.C. Amounts in this account are
allocated to the 12 Federal Reserve Banks by the Board of Governors."

   My friends, I speak again now as a lawyer. In any conspiracy to
commit a crime, the circle of conspirators is always kept as small as
possible. The fewer the people involved, the less the risk of
exposure, and that is exactly the pattern that is emerging now.

   By every evidence up to now, the officers and directors of 11 of
the 12 Regional Federal Reserve Banks are not party to the gold
conspiracy. They are dangerously misinformed, but they appear to be
acting in good faith. It is they who will be faced with enormous
fines, prison terms, and ruined lives when the Scandal breaks; and yet
they appear to be blissfully unaware of their great danger. And that,
my friends, is the second telltale sign in all great conspiracies--the
conspirators always make sure that there will be someone else handy to
take the blame!

   For example, when the CIA, on orders, assassinated President John
F. Kennedy, they made sure a  "patsy" named Lee Harvey Oswald was on
hand; and they also made sure he was silenced before he could raise
too many doubts. Likewise, the conspirators within the Treasury and
the Federal Reserve Board of Governors have made sure that they, too,
will have their scapegoats. Those scapegoats are to be the officers
and directors of the Regional Federal Reserve Banks. Ignorance of the
law is no excuse; so when the Gold Scandal breaks, as it will, they
will be bundled off to prison to satisfy the rage of the American
public--that is, my friends, unless they take action now to save
themselves.

   During the past six weeks or so they have been p ut on legal notice
for the first time ever about the missing Federal Reserve gold--so
they can break free of the web of intrigue if they will. They can do
this by taking the initiative to bring about an independent,
conclusive, physical inventory of the gold. By doing that, they can
free themselves of any taint of suspicion; but if they choose not to
act, my friends, they will only be sealing their own fate because they
are now on legal notice. And if they choose inaction, they will make
themselves accessories after the fact in the biggest scandal in
American history--the GOLD SCANDAL. The choice is up to them!

   My friends, it's up to us--you and me--to alert the Federal Reserve
Bank officials to these things, and so I will be sending a copy of
this tape to the President of each Federal Reserve Bank by Registered
Mail. I need for you to back me up with your letters.

   I am about to read you a sample letter to get you started. Please,
write a letter like this to the President of the Federal Reserve Bank
in your Region. I told you how to get the address in AUDIO LETTER No.
59.

   Send the original to the President of the Federal Reserve Bank, and
send a copy to each one of the other Directors. A photo copy will do;
and as always, be sure to keep a copy for your own file.

   Now here's the sample letter I suggest. Feel free to use your own
words, but please do not cut corners. WE MUST HAVE ACTION--AND SOON,
because time is fast running out:

"Dear Mr. (so and so):

 I am writing to you again because of my continuing deep concern over
the loss of our gold reserves. Thank you for your earlier reply; but I
am concerned that you do not appear to be aware of certain extremely
large legal responsibilities on your part. In a recent cassette tape,
Dr. Beter has given a legal discussion of these responsibilities on
your part. Dr. Beter speaks as a lawyer and a former Counsel to the
United States Export-Import Bank, the largest governmental bank in the
Western world. Therefore I do not believe that you can safely afford
to ignore his legal briefing of your responsibilities regarding the
gold.

 Dr. Beter has notified his listeners that he is sending a copy of
this cassette tape--AUDIO LETTER No. 61--to you by Registered Mail. It
will take you and the other Directors of your bank just one hour to
hear what he has to say. I cannot urge you strongly enough to do just
that.

 After you hear Dr. Beter's tape, I believe you will agree with me
that you should take steps to protect your own personal interests. To
that end, I urge you to demand immediate action by the Federal Reserve
Board of Governors to arrange an independent, conclusive, physical
inventory of the gold in Treasury vaults. As you will hear Dr. Beter
explain, you do have the authority to bring this about.

 Please insist that the committee which oversees the inventory include
the President or another Director from each one of the Regional
Reserve Banks. You dare not delegate this duty to anyone else,
including even the Federal Reserve Board of Governors. Your own
personal vital interests are at stake!

 If you will do this, it can only have one of two possible outcomes,
both good. One possibility is that the inventory will prove that all
the gold is there, and Dr. Beter is wrong. That would lay to rest
seven years of unanswered questions which have undermined confidence
in America's banking system.

 The only other possibility would be to prove that much, if not all,
of the gold is missing. In that case, you will be taking the first
step toward correcting the real causes of our crumbling economy, and
you will have removed yourself from any taint of suspicion.

 Either the gold is there--OR--it is not there. Dr. Beter is not
afraid to learn the truth. Are you?"

                                  --Followed by your signature.

   My friends, once again I'm asking you to go to work. Please get
your letter and copies off to the Federal Reserve Bank in your Region
right away. As I said before, I hold out no hope for the New York
bank, but the other 11 Regional Banks appear to be a real ray of hope;
and if they will do their duty and use their latent powers, they can
save themselves while doing a great service to America.

                       LAST MINUTE SUMMARY

   Now it is time for just a few final words as my "Last Minute
Summary."

   Today, January 20, 1981, is Inauguration Day. To all outward
appearances, a new Administration has begun; but thanks to the
obscure, recent Branti decision of the Supreme Court, the change is
only on the surface. The real battle to control the United States
Government continues unabated.

   My friends, these things cannot be allowed to continue. It is up to
you and me to do our Constitutional duty to save our land.

   Until next month, God willing, this is Dr. Beter. Thank you, and
may God bless each and every one of you.
------------------------------------------------
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