How to Achieve and Maintain Financial Success

Many years ago I made the decision that I wanted to become financially successful, yet I was never taught in school or at home exactly how to achieve this goal. I therefore went to the bookstore and purchased Napoleon Hill's famous book "Think and Grow Rich". I took the book home, settled in my easy chair, and then began to read in earnest. I felt that if only I could discover the secret(s) of the wealthy my life would forever change.

On page 6 the following statement was written by the publisher. "What is it that makes one man march forward all his life, accomplishing, earning, multiplying his wealth and his happiness - while another man never gets started? What is it that gives one man great personal power, but leaves another ineffectual? What makes one man able to see his way through any problem, finds his path over all the rough spots of life to the fulfillment of his dearest dreams - while another struggles, fails, ends nowhere"? The answers to these questions were exactly what I was searching for. I got out my highlighter and began to score every word or sentence which I felt may when united provide the insight needed to fulfill my dream.

As I continued on, turning each page with great anticipation, I was struck by two comments made by the author in his written preface which caused me to pause and consider the importance. On page 9 he stated that "In every chapter of this book I mention the money-making secret that has made fortunes for hundreds of exceedingly wealthy men. On page 14, he stated that "Somewhere, as you read, the secret to which I refer will jump from the page and stand boldly before you, if you are ready for it! When it appears, you will recognize it". It was at this point that I came to understand that achieving my goal of financial success would not be presented to me on a silver platter, yet if I focused intently on what was written I would eventually make the discovery.

I continued to read on and highlighted the words and sentences which I intended to review later. Eventually I came to page 36 where the author titled the section as "Six Steps that Turn Desires into Gold". I began to read the first recommended step which stated, "Fix in your mind the exact amount of money you desire". As soon as I read the words I was struck with the thought - the ultimate goal is to make money. Now I concluded that if I was going to spend a majority of my waking hours in the pursuit of making money, it then made sense that I should first take the time needed to understand what money is so I would be sure I was on the correct path to attaining and maintaining financial security. I finished the book, and then immediately began to do research related to money.

Believe it or not it wasn't long before I discovered that "money" was not what I thought it was. I then, like many still today, was of the belief that the Federal Reserve Notes I received in payment and later exchange for goods and services was money. It wasn't then and it isn't now. In fact you cannot even honestly refer to FRN's as money substitutes. It is a fraud to even call them notes because legally they do not meet the criteria as set forth in the Uniform Negotiable Instruments Act. This act states that a note "to be negotiable" (1) must be in writing and signed by the maker or drawer, (2) must contain an unconditional promise or order to pay a certain sum in money, (3) must be payable to order or to bearer, and (4) where addressed to a drawer, he must be named or otherwise indicated therein with reasonable certainty.

At one time in US monetary history there did exist Federal Reserve Notes which did comply with items 1-3 of the UNIA (the fourth being unnecessary for "bearer" paper). These were the notes which circulated from 1913 - 1934 where it was clearly indicated on the face of the note that they were "Redeemable in gold on demand at the United States Treasury or in gold or lawful money at any Federal Reserve Bank". The other Federal Reserve Note which complied with the UNIA was issued from 1934 - 1963 and it clearly stated that "This note is legal tender for all debts public and private and is redeemable in lawful money at the United States Treasury or any Federal Reserve Bank".

When the Gold Reserve Act of 1934 made it illegal for Americans to own gold, Gold Certificates were removed from circulation which had a gold redemption clause and was replaced with the new FRN with the new clause as indicated above. Two points of interest should be noted with regards to the redemption clause which then appeared on the FRN's issued. The first is that the FRN's became "legal tender" as a result of the Thomas Amendment to the Agricultural Adjustment Act of 1933 and second they were redeemable in "lawful money". What was the lawful money that could be used for redemption? Apparently that would have included at that timeSilver Certificate, silver coins, and US Notes.

After 1963, the redemption clause on Federal Reserve Notes was eliminated and now reads as follows: "This note is legal tender for all debts, public and private". There no longer is any mention of redemption by either the US Treasury or the Federal Reserve. A FRN today is nothing more than a rectangular piece of green paper with the image of a dead president, signatures of government officials, and enforcement by the government to be accepted by all due to legal tender laws. Obviously one cannot in all honesty call the script which circulates today throughout the world economies "money". It is only money because the governments insist that it is money.

So you may be asking yourself what's the problem. As long as people accept this paper in exchange for goods and services I may need and desire there is no problem to be concerned about. Those who would make such a comment then, without a doubt, have no understanding of monetary history. Simply stated, there has NEVER been a currency that has not collapsed at some point once the backing of gold and silver has been removed. No Exceptions.

My next article will discuss why a currency which no longer is backed by precious metals has, and will continue to have extreme negative ramifications to maintaining long-term financial independence and security. You will need to read the book Think and Grow Rich to discover how to increase your wealth, you will need to own gold and silver if you intend to maintain that wealth in the future.