Anthony Joseph
I do not not agree that "the last act", as you describe it by being handed FRN paper, consitutes conversion or agreement to the FR code when one clearly demands lawful money.
http://www.treasury.gov/resource-cen...al-tender.aspx
U.S. notes serve no function that is not already served by Federal Reserve notes. As a result, the Treasury Department stopped issuing U.S. notes, and none have been placed into circulation since January 21, 1971. Those that remain in circulation are obligations of the U.S. government.
How can that be? How can Federal Reserve notes serve or function as U.S. Notes if FRNs are "for no other purpose"? The Treasury is speaking to the dual function and character of the Federal Reserve note in that it can serve the function of a U.S. note. U.S. notes are without the scope of the Federal Reserve system's rules, regulations, obligations and liabilities. So, according to the Treasury, a FRN will serve as a U.S. note if need be. Your opinion is that is not possible or spelled out in their "law" and yet, he it is in plain english.
How does one establish or initiate the "U.S. Note function" of an FRN since it is obviously possible by the admission of the Treasury? The demand for lawful money makes FRNs function as USNs thereby avoiding the obligations and liabilities of the private credit of the FED.