Federal Reserve Act - Remedy video.

[shikamaru]

And that is where I - mentally, conceptually, understandingly - get stuck. IF there really are no "reserves" then there is nothing backing it nor is there any 'full-faith & credit of the people' since the people (the majority of them anyway) are not aware of this.

There are some reserves behind FRNs, but not "reserves" in the traditional sense.
Fractional-reserve lending has some levels or limits that a bank has to maintain.

FRNs are backed by the labor and assets of the American people. These properties have been pledged as collateral for FRNs.
It is not the FRNs so much as the Treasury bills and Treasury notes the government sells in which said government owes interest on.

By the by, Treasury bills and Treasury notes are lawful money as well .

From my understanding, it was the King who decided upon using tally marks upon sticks/wood. That means HE was the sovereign, not the People. Are we not in the very same situation right now? THEY decided we should use FRN's, THEY decided to take us off the gold standard. This is where my own conundrum begins regarding 'redeemed for lawful money' & believing we "should" be back on the gold standard.

True. The Constitution may have been a false bill of goods for the majority of people.
A gold or silver standard would be no better. Check out the movie, "The Secret of Oz" on YouTube.com
I would make the demand for lawful money however. It would seem to have tax implications in your favor.

However, I have yet to find anything that says we are limited to contract, therefore, if I want to bargain/exchange/trade with you, that would fall under Private Contract (which it does appear we would HAVE To PROVE to avoid being 'taxed')

You can do private contracts in gold, silver, or sheepskins if you like. Private is private.
In fact, you can do better for yourself negotiating private contracts in gold and silver than FRNs, in my opinion.