US v. Kahre - What's the Verdict?

Christopher called me about an hour ago. He tells me that the verdict is in regarding the USA v Kahre case here in Las Vegas. The jury has only deliberated for a day and a half and there are over 100+ counts. Christopher's brother, Joel (an defense attorney in this case), believes that this means acquittal! Christoper is on his way down there now to find out what's what.

As I write this, I do not know what the verdict is. However, I do have some musings that I would like to share with you regarding the central issue in this case.

I personally believe that the federal reserve notes that people carry around in their wallets are not "dollars".

What matters is the definition of a "dollar"

[T]he term "dollar" means money, since it is the unit of money in this country, and in the absence of qualifying words, it cannot mean promissory notes or bonds or other evidences of debt. The term also refers to specific coins of the value of one dollar. (27 Ohio Jur pp. 125, 126, § 3), (United States v. Van Auken, 96 US 366, 24 L ed 852) - American Jurisprudence, Volume 36, § 8

and

dollar. The legal currency of the United States; State v Downs, 148 Ind 324, 327; the unit of money consisting of one hundred cents. The aggregate of specific coins which add up to one dollar. 36 Am J1st Money § 8. In the absence of qualifying words, it cannot mean promissory notes, bonds, or other evidences of debt. 36 AmJur. 1st Money § 8. - Ballentines Law Dictionary, 3rd Edition (1969)

Next, we look at the definition of the term "federal reserve note"

federal reserve note. The paper currency in circulation in the United States. The notes are issued by the Federal Reserve Banks, are effectively non-interest-bearing promissory notes payable to bearer on demand, and are issued in denominations of $1, $5, $10, $20, $50, $100, $500, $1,000, $5,000, and $10,000. - Black's Law, Second Pocket Edition (1996)

So, if "federal reserve notes" are promissory notes, and promissory notes cannot be "dollars," federal reserve notes are not dollars. The government witness in the Kahre case testified as much.

Next we have to address the issue: "other than money." Supposedly, these legal tender gold and silver non-numismatic coins are somehow something "other then money," when in fact it is the federal reserve notes that are not dollars. I suppose the question really becomes whether federal reserve notes are money. While I will admit that they can be used as money, they are not, in fact, money. They are evidence of the national debt.

So, if I am being paid in money whose face value is fifty-dollars, what am I supposed to report as income to the IRS? That's what this case is about.

Christopher just called and reported that the jury came back with a mix of acquittals and guilty verdicts for each of the four defendants excepting Kahre, who was convicted on all counts. The US Attorney requested that all of the defendants be taken into custody pending appeal, and the judge denied that motion. There is a report that Kahre said that his life was over, anyway, and that the judge remarked, "I assure you Mr. Kahre, your life is not over.” Wonder what that means.

In any event, this matter will be appealed to the 9th circuit and then on to the Supremes. We have to know what a dollar is if we are going to report income in dollars.

Here is an update: Kahre Convicted on All Counts