Ron Paul, currently 10th term Republican Congressman from Texas, 2008 presidential political candidate for the Republican party, and former Libertarian presidential candidate introduced this bill into the House of Representatives on June 15th, 2007. It is similar to previous bills entered by Rep. Paul calling for abolishment of the Federal Reserve such as H.R. 5356 in the 107th Congress (2002). Rep. Paul has also supplimented this bill with H.R. 2756 which is a perfunctory repeal of section 5103 of title 31 in the United States Code, pertaining to the ability of Congress to issue legal tender currency, also similar to previous bills introduced by Rep. Paul. The overall purpose of these initiatives is to reduce the regulatory authority the Federal Government has over monetary policy, which damages the continued economic viability of the U.S. Dollar in the American marketplace.

This bill introduced by Rep. Ron Paul orders a complete dissolution of the Federal Reserve System and particularly, the Presidentially-appointed Board of Governors that oversees the administration of monetary policy. The Federal Reserve system is the nation's central bank and a quasi-governmental, quasi-private institution that controls the supply of money in the United States. If passed, the responsibility of dealing with monetary policy in the United States would be given to the various independent banks which currently produce its supply, which will no longer be under a central authority. Paul has attempted in the past to suppliment this bill with another designed to negate Federal law establishing a legal tender bill, which would allow private citizens to establish what is to be used as money. In a system where both of these laws go into effect it is very likely that the economy would stop producing fiat bills entirely and instead produce bills backed by a specie such as gold, likewise planned monetary inflation would cease. Libertarian motives for the abolition of the Federal Reserve are discussed in greater detail in the article Repeal of the Federal Reserve Act.

As provided by GovTrack.us

[edit] SECTION 0. INTRODUCTION

110th CONGRESS

1st Session

H.R. 2755

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

June 15, 2007

Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[edit] SECTION 1. SHORT TITLE

This Act may be cited as the `Federal Reserve Board Abolition Act'.

[edit] SECTION 2. FEDERAL RESERVE BOARD ABOLISHED

(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.

(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.

(c) Disposition of Affairs-

(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System--

(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks--

(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and

(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and

(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.

(2) LIQUIDATION OF ASSETS-

(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.

(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.

(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.

(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.

Since this bill pertains to the abolishment and dissolution of a major institution of the current government, it is classified as a SECTION 2 "TRANSITIONAL MEASURE".