Dr. Peter David Beter - Audio Letter No. 59.
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Inc., a Texas corporation, which originally produced this tape
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This is the Dr. Beter AUDIO LETTER(R), 1629 K St., NW,
Washington, D.C. 20006.

Hello, my friends, this is Dr. Beter. Today is October 31,
1980, and this is my AUDIO LETTER(R) No. 59.

Earlier this month millions of baseball fans were preoccupied
with the World Series. The World Series is always great fun with
plenty of excitement and suspense right to the end; and even if
your team loses, it's not so bad. There's always next year.

Now you and I are caught up in a "world series" of a different
sort. Ours is a series of battles to determine what sort of
world we will leave to our children, and there will be no rematch
next year! If we strike out now, the game is over, so we need to
keep swinging until we finally hit that home run we need in order
to win.

My three special topics this month are:


Topic #1--During this month of October 1980 three issues have
dominated the news here in the United States. One has been the
continuing war between Iraq and Iran. That has been overshadowed
in turn by sudden new rumors about a possible release of our
hostages in Iran. And the third issue, riding the waves of other
events, has been the up-coming election. These three on-going
news stories are all related, and in turn they all reflect a
fierce struggle behind the scenes among three (3) different power

One group is that of the Satanic Bolsheviks who now control
the United States government. Another group is that of the
Rockefeller Oil Cartel now under the control of John J. McCloy.
And the third power center is in the Soviet Union whose rulers
today are in a battle to the death against the Satanic
Bolsheviks. The primary actors right now are the Bolsheviks and
the McCloy Oil Group. It is they who have done most of the
maneuvering in the Iraq-Iran war, in the hostage release rumors,
and in the election build-up. But in all three areas, Russian
agents have been joining the fray too. Wherever possible they
are trying to interfere with Bolshevik plans even if that helps
Big Oil temporarily.

For most Americans, the rumors about a possible hostage
release have become a central issue in recent days. It seems to
have sprung from the Iraq-Iran war and talk of trading spare
parts to Iran for the hostages. And the prospects for a hostage
release are also being watched for their effect on our national
election. And so after nearly one year, the Iran hostages are
again on center stage. And now as then, my friends, the real
stakes in the Iran hostage issue involve the danger of
thermonuclear war.

Last month in AUDIO LETTER No. 58 I explained how the
Iraq-Iran war was triggered. It involved a huge bribe to Iraq
engineered by the Rockefeller Oil Cartel, and it was paid in
gold--$8,000,000,000 worth of gold! This was part of the very
gold which was stolen years ago from the United States Treasury
Depositories. The goal of Big Oil is the one I explained last
month. They want to finish what they started by their overthrow
of the late Shah of Iran. They want to retake control over Iran
with its oil riches on new and more profitable terms, and to do
that they want to topple the so-called Khomeini regime one way or
another. The war with Iraq is supposed to begin that process,
but Iran is not the only arena in which the crumbling Rockefeller
Cartel is trying to reassert itself.

It's happening also right here in the United States. All of
the old faces from the heyday of Rockefeller power under the
Nixon Administration are clustered together right now under the
Republican banner. The ghost of Nelson Rockefeller is grasping
for the White House once again. Meanwhile the Bolsheviks who
have seized control of the United States government have no
intention of letting go, and the easiest way for them to retain
control is simply to keep the same faces on the scene. And so
the Bolsheviks here are doing everything they can to prevent a
change in the White House.

Last month I reported that the Rockefeller Big Oil Group had
worked hand in glove with this Bolshevik government in the
Iraq-Iran war. But here at home, the two are rivals. Last month
I said that Big Oil was only setting itself up for double-cross
by the Bolsheviks; and sure enough, this month the Bolshevik
double-cross began to materialize in the form of a sudden new
hostage release plan. By means of this one ploy, the Bolsheviks
in the United States Government were hoping to pull the rug out
from under the Rockefeller Oil Group, both in the Persian Gulf
and in the election here.

On October 6 the Republican campaign announced the formation
of a Special Advisory group. The group was said to be for the
purpose of watching for and planning against a so-called "October
surprise." It was feared that something was about to happen to
upset the apple cart just before the election. The very next
day, October 7, their fears began to be realized. An independent
presidential candidate, Barry Commoner, announced that he had
received a hostage release proposal from Iran. It was turned
over to the State Department, and there began to be flurries of
excitement. On October 9 the hostage story warmed up some more.
That day State Department spokesmen stated that they were in
contact with the hostages. Referring to the top ranking hostage,
Bruce Langdon, the spokesmen said, quote: "We are in contact on a
regular basis."

The next item to build anticipation over the hostages came
from Norway. Norway, like Iran, is in the front lines of the
Bolshevik planning for a nuclear first strike at Russia. I
reported that long ago in AUDIO LETTER No. 37; and on October 10
a newspaper in Oslo, Norway helped to move along this latest
Bolshevik ploy. The Norwegian newspaper quoted former Iranian
Foreign Minister Ghotbzadeh as saying that Iran should release
the hostages immediately. In the United States the excitement
built up another notch.

For the next week or so the Iran hostage release rumors were
allowed to simmer for a while. Then on October 17 Iran's Prime
Minister Rajai provided the next excuse for heightened rumors.
He appeared before the United Nations Security Council where he
bitterly attacked the United States for helping Iraq in the war,
but that was downplayed in the news compared to other remarks
Rajai made in a news conference a day later. Under pressure of
the war with Iraq, Iran seemingly was looking for a way out of
the hostage crisis.

The rush of rumors turned into a torrent after that, and on
Wednesday October 22 NBC Nightly News carried a sensational
report. It was said that there had been a "breakthrough" in the
negotiation over the hostages. Supposedly the Iranian Parliament
was almost certain to set conditions for the hostage release
during debate on Sunday, October 26, and that could be followed
by the actual release of the hostages as early as the next day.

Up to that point the Bolshevik planners had everything going
their way. By their calculations, the release of hostages on
that schedule would have guaranteed re-election of this Bolshevik
Administration, because the entire week preceding the election
would have been filled with news of the hostages. There would
have been the drama of the release itself, then for days stories
of some of the hostages coming home, others going to intermediate
stopovers for medical treatment. Stories of reunions, interviews
of former hostages and their families, special news reports to
rehash it all. And, my friends, if it had all gone as planned
there would have been euphoria here on election day 1980.
Millions of formerly undecided voters would have been caught up
in the emotion of the moment, and the Bolsheviks were certain
that they would pull the lever marked "Jimmy Carter" in the
voting booth. It did not matter that cynicism would set in later
over the timing of the release. By then, the election would have
been over and the deed would have been done. That was the
Bolshevik plan of the United States Government, but once again
Russian agents are trying to intervene in an effort to unravel
these Bolshevik plans.

From the very beginning the hostage situation in Iran has been
under Bolshevik control, as I first revealed in AUDIO LETTER No.
52. But the Bolsheviks do not exercise complete control over
Iran, because the Russians have also succeeded in establishing an
important level of influence in Iran nearly a year ago. In the
present situation, Bolshevik agents in Iran tried to stampede the
Iranian Parliament into the quick action they wanted. But
Russian agents succeeded in at least slowing down the stampede,
and the Bolshevik timing was delayed. So now even if the release
of the hostages does take place in one form or another, the
effect on our election is less predictable. A last minute
release could even have a backlash effect on voters due to
cynicism, and so the election is now up for grabs. It could
easily go contrary to Bolshevik wishes. If it does, that will be
a setback for the Bolsheviks, mainly in terms of delay. They
will be forced to re-establish control over any new
administration. That will cost the Bolsheviks a little bit of
valuable time in their frenzy to set off NUCLEAR WAR ONE, and
that is exactly why the Russians want a change of administration
simply to slow down the Bolsheviks.

But I mentioned earlier that the hostage release ploy of the
Bolsheviks was set in motion for two (2) purposes. One was to
undermine the grab for the White House by the Rockefeller Big Oil
Group under the name of Ronald Reagan. That purpose depended
strongly on timing, and so has probably been ruined; but the
other purpose of a hostage release at this time is still on
track. It is part of the latest Bolshevik scenario to lead up to
a nuclear first strike against Russia.

The first step in this latest war plan was to set off the
Iraq-Iran war, as I mentioned last month. The Rockefeller Big
Oil Group did this, thinking they were starting the downfall of
the Khomeini regime; but the Bolsheviks here used it for another
purpose instead. Basically the Bolshevik United States
Government is saying to Iran: "Release the hostages and we will
give you military help against Iraq", which is backed by Big Oil;
and to get ready, a sizeable Amphibious Attack Force of United
States Marines is on the way. The Force includes a helicopter
carrier, landing craft, and some 1,800 Marines. It passed
through the Suez Canal very quietly on October 27 heading for the
Persian Gulf. The tactics keep changing but the strategy is
always the same.

Lately our fears have been stoked up over Russian designs on
the Middle East and Persian Gulf. First Russia was given a black
eye by its past ties with Iraq when Iraq invaded Iran. Now we
are hearing about Russian overtures to Iran by supplying certain
war needs. And in the midst of it all is the hostage release
ploy. The Bolsheviks here are trying to set the stage for a
massive American military return to Iran. If the plan succeeds,
it will be as I described it long ago in AUDIO LETTER No. 37, and
I quote:

"The American public will demand that it is time to stand up to
Russia, and with full public support American troops and weapons
will pour into Iran. From that point onward the outbreak of
NUCLEAR WAR ONE will be all but impossible for the public to
follow by way of the so-called news."

(End of my quotation from AUDIO LETTER No. 37.)

The Russians know what is afoot and they are trying to ruin
the plan. In this case, that means trying to spoil the hostage
release negotiations altogether. Up to now Russian agents in
Iran have succeeded in spoiling the timing of a hostage release,
and they are still at work as I say these words on October 31,
hoping to prevent the hostages from being released at this time.
If they succeed, it will be the fourth time during 1980 that
nuclear war has been averted. Even so, the Bolsheviks who have
taken over our government never rest.

By the time you hear this, the election will be past and the
matter of the hostages may have been decided, but the Bolsheviks
already have another serious crisis building up in Poland. For
two years now the Bolsheviks have been trying to create an
explosion in Poland. The first plan was the one for a Pope's
Revolution, as it would have been known. I described that plan
in detail in AUDIO LETTER No. 42; but just as in the present
hostage release ploy, timing was critical to the Pope's
Revolution plan; and the Russians were able to spoil the plan by
changing the timing of the Pope's visit to Poland. But now the
Bolsheviks have a new weapon of destruction in Poland. It is the
so-called "Independent Trade Union" movement. It has been given
the old Bolshevik name "Solidarity", but its real purpose is not
solidarity but division, turmoil, and revolution.

Two months ago the new rulers in the Kremlin defused the
confrontations then brewing by approving major concessions to the
strikers. Now many of the Polish workers want to take a breather
to consolidate their gains, but the Bolsheviks did not create the
new Labor movement for that purpose. Instead there are new and
bigger demands, spreading agitation, and threats of a new major
strike. So now Poland's borders with Russia, East Germany, and
Czechoslovakia are slowly being sealed off. Large concentrations
of Russian troops are now poised along the border in Russia and
East Germany. The Polish workers, having been used as pawns, may
soon lose everything; but those who have used them, the
Bolsheviks, may well get everything they want--revolution,
strife, and bloodshed. If that happens, my friends, it may be
the last straw for the leaders in the Kremlin.

Last month I reported that Russia had begun making feverish
preparations to be able to decimate New York City by means of
geophysical warfare. I can now report that these preparations
also extend in more limited form northward into New England.
There is a little known but major fault that runs along the east
coast, partly offshore, partly on land, and Russian cobalt bombs
for earthquake generation have now been planted in eight (8)
areas along this fault in the Northeast. These locations
respectively are: south of Providence, Rhode Island; south of
Norwich, Connecticut; several near Hartford, Connecticut; near
New Haven, Connecticut; south of Springfield, Massachusetts; and
near Northampton and New Bedford, Massachusetts. But it is still
New York City that is now subject to the greatest devastation by
far. The reason, as I explained last month, is that New York is
the headquarters city of the Bolsheviks here in America. Right
now the Bolsheviks are trying to see to it that Russia has her
hands full due to revolution in Poland; but if that happens, the
Bolsheviks here will also have their hands full. They may well
find themselves picking through the smoking rubble of that ruined
headquarters city because, my friends, at last report there are
now 85 earthquake-producing cobalt bombs buried beneath the
waters around New York City.

Topic #2--For several months now I have been offering you my step
by step answers to the question, "What can I do?" I began doing
this because more and more of you were asking me to do it. You
had started telling me that you were no longer satisfied just to
watch and listen as our crises multiply; instead the time has
come for action--now or never.

In AUDIO LETTER No. 56 last July I said that what we must do
is to wage PREVENTIVE war. Ours is a war of truth to head off
nuclear war. Our strategy is to take away the gold weapon which
our enemies within are using against us; and by revealing the
truth about the theft of America's gold supplies, the gold weapon
will become our very own. This is the only way, my friends, we
can seize a weapon big enough to halt our betrayal into national

The first battle front in our preventive war is our campaign
directed at Senator William Proxmire, and we must continue what
we have started along those lines. But up to now Senator
Proxmire has been conspicuous by his failure to take meaningful
action, so this month we are about to open up a second front in
our preventive war. It lies totally outside Proxmire's control
yet could also increase the pressure for him to act. I will go
into all that in Topic #3, but for now I want to concentrate on
our direct campaign with Senator Proxmire.

For more than two months now many of you have been showering
Senator Proxmire with letters. As I have suggested, you have
demanded that he open up a full, public investigation of
America's gold reserves. Ultimately there will have to be a
complete physical inventory of our gold, if there is any left.
My friends, in any campaign like this, every effort is always
made to make you feel isolated; but if you think you are alone in
your concern about our missing gold, think again. To give you an
example of what I mean, I have an important letter to read to
you. It was written to Senator Proxmire early this month on
October 2. The writer is a very astute businessman in Proxmire's
home state of Wisconsin. What's more, he's a man who knows
Proxmire socially; but wait until you hear what he thinks about
the situation. He sent a copy of his letter to my dear friend
Mr. Edward Durell. He gave permission to make it public if
desired, and Mr. Durell provided me with a copy. I will now read
it to you:

"Dear Bill,
Mr. Edward Durell, a close friend of mine, has sent me a copy
of his letter to you of September 5, 1980. The crux of the
letter asks that you demand an inventory of the nation's gold
reserves. I have written to you on this subject myself more than
once. The reluctance of the Treasury Department to provide a
sensible answer to this basic and simple question appears to
indicate that the present real value of the Treasury's gold
reserve might represent the ultimate 'Golden Fleece.'

The inventory practices which the Treasury is currently using
would not be accepted by any public accounting firm nor by any
corporate management I know of. It is elementary that the nation
know what its gold reserve is; and the fact that no action is
taken to take a physical inventory, as would be required by
generally accepted accounting standards, makes the United States
Gold Reserve an open question around the world. I have
personally heard this question raised by financial people in both
London and Zurich, and of course many times in the United States.

As Chairman of the Senate Banking Committee, this is certainly
one of your responsibilities. It seems strange that you do not
take a determined action on this question which is so much more
important than the many other incidents of waste which you have
pursued with vigor.
Sincerely, "

and there follows the signature of the writer.

My friends, the letter I've just read to you represents the
thinking of more and more highly informed business and financial
people, so don't let anyone bluff you into thinking otherwise.

Now let me return to your own letter-writing campaign. By now
you should have received at least one reply from Senator
Proxmire. Some of you have received two replies by now. The
first wave of letters to Proxmire in August produced a
computerized form letter, which I quoted last month. Proxmire
began sending that letter to people in late August. In the
letter Proxmire passed the buck to the Treasury itself.
Supposedly he asked the Treasury's Inspector General for a report
about a specific missing shipment of gold. This was the mystery
shipment of January 20, 1965 from Fort Knox. It was a shipment
worth more than a billion dollars--1000 million dollars--at
today's prices; and it was admitted in writing five years ago by
Mrs. Mary Brooks, then Director of the United States Mint. Yet
it was listed nowhere on the official Treasury listing of
shipments from Fort Knox.

Now the time has come to ask a new question, my friends, and
that is: "Whatever happened to that promised report by the
Treasury Inspector General?" After all, you've been writing to
Senator Proxmire since mid August. I hope that you've been
keeping a file of all your correspondence to and from Senator
Proxmire, because now it's time to write your most important
letter yet to Senator Proxmire; and if you can refer back to the
date of your first letter, it will increase the impact of this
letter. If you have not been keeping a file as I urged you to
do, then just do the best you can on this letter; but please do
start now to keep a file in a folder or in a manila envelope. As
time goes on, this will become more and more important.

By the way, if you have not written before but want to write
this time, by all means please do so. Make whatever changes you
need to in the model letter I'm about to suggest, to fit your own
situation, and send your letter to:

Senator William Proxmire
Senate Office Bldg., Washington, D.C.

Now here's what I suggest as a starting point for your newest
letter to Senator Proxmire:

"Dear Senator Proxmire,
For several months now I've been writing to you to urge that
you open a full, public investigation of America's gold supplies.
I first wrote you about this urgent matter on (date so and so).
In reply you promised as a first step to obtain a report about
one matter from the Treasury Inspector General. This matter was
the missing gold shipment on January 20, 1965 from Fort Knox.

I have also written you more recently on this over-all subject,
but up to now your replies continue to say that you have
requested a report, not that you have received one; so I now ask:

'Have you received the report you said you requested from the
Treasury Inspector General over two months ago? If so, then I
request that I be furnished a copy promptly. But if not, then
why not after so long a time? If it takes over two months for
the Treasury to figure out what happened to a billion dollars
worth of gold, then something is very wrong. And something is
also very wrong if you are content to accept silence about so
vital a matter.'

Once again, I urge you to open up a full, public investigation
into the condition of America's gold supplies without further
delay. And more and more of my friends and neighbors are
beginning to agree--that is the message of the additional
signatures at the end of this letter."

After signing your letter, then get everyone else you can to add
their signature below yours, just signatures of anyone who agrees
that your question deserves an answer. Even if only two or three
friends will add their signatures below yours, it will help.
Every name counts. Use your influence. Before, Proxmire was
receiving letters; now he will begin to see petitions, petitions,
and more petitions. And, my friends, so will other certain very
important people!

After you have collected all the signatures you can, please
make a generous supply of photo copies before mailing the
original to Proxmire, because copies of this latest letter to
Senator Proxmire will be a weapon you can begin using for other
purposes, and we will use them right away as we open up the
second front in our Preventive War to SAVE AMERICA.

Topic #3--As you probably know, America's currency is not issued
by the Treasury but by the "Federal Reserve System." If you look
at a dollar bill you will see the words: "Federal Reserve Note."
In banking terms, a Note is an I.O.U.--a promise to pay
something; and it's the Federal Reserve System, not the United
States Government itself, that issues these I.O.U.s which we use
as currency. They're printed by the United States Government
Mint for the Federal Reserve System for a small fee. In effect,
the United States Mint, a branch of the Treasury Department,
serves as a mere print shop for the Federal Reserve System.

Many people assume that the Federal Reserve System is a
Government agency, which IT IS NOT. It is purely a
privately-owned Central Banking System! What I've just said is
essential to understand. It's the key to our opening up the
Second Front in our Preventive War to Save America. So before I
go on, I want to say a few more words about the purely private
nature of the so-called "Federal Reserve System." I realize that
for some of you what I will say will be review. You've already
studied the Federal Reserve System yourself and know that it is a
private corporation, but my mail indicates that many of my newer
listeners are not aware of this.

It's not surprising that so many people believe the Federal
Reserve System to be a Government agency. From its very
beginning in 1913, the Federal Reserve has always presented a
false governmental image. To begin with, its creation in 1913
required an act of Congress; but that was not because Congress
was authorizing a new Government agency. Instead, it was because
Congress was abdicating its CONSTITUTIONAL duty to create and
issue the nation's money! In effect, Congress gave a Federal
Corporate Charter to the new privately-owned Central Banking
System. In turn, that system was given the name "Federal Reserve

There were many Americans in those days who were bitterly
opposed to the creation of a private Central Bank. They believed
that the creation and control of our money should be left in the
hands of the Government--not a private corporation. Others
believed that private control of our money would not be so bad if
it were dispersed. What these critics opposed was concentrating
our money control in just one bank.

To silence these critics, the architects of the new private
Central Bank for America did two (2) things. The first had to do
with the Board of Directors of the System as a whole, which they
call a "Board of Governors" because it sounds better. They agree
to allow the Chairman of the Board to be a presidential
appointee; and just for good measure, they agree to let the
appointment be subject to confirmation by Congress. The other
maneuver by the Federal Reserve architects of 1913 was to abandon
the idea of a single Central Bank. Instead they created a system
of 12 banks scattered across the United States. That gave the
image of a diffusion of control over America's money; but
actually that, too, was only for show purposes to silence the
critics. All of the real action in the Federal Reserve System
takes place within the Federal Reserve Bank of New York. The
other 11 Regional banks just follow the lead of the New York
Bank. They have power but rarely use it, and so in effect the
Federal Reserve Bank of New York is the real Central Bank of the
United States.

The governmental cloak that seems to surround the Federal
Reserve System is actually very thin, but it's enough to mislead
most people, because they do not look close enough. For example,
people often assume that the word "Federal" is a sign that the
Federal Reserve System is a government agency; but as Abraham
Lincoln once said in a famous court case: "A flower does not
become a rose just because I call it a rose." And the Federal
Reserve System is not a government agency just because of its
name. If you will look around you, you will see many private
companies that use the word "Federal" in their names. For
example, there is even an air freight company called "Federal
Express", but of course Federal Express is not a government
agency. It's a private company, with private stockholders.

The real criterion as to whether an entity is public or
private is that of ownership; and by that criterion the 12
Federal Reserve Banks are totally and unmistakably private
corporations. They issue stock like any other private
corporation; and, my friends, the United States Government does
not own one penny's worth of Federal Reserve stock. Even the
buildings which house the Federal Reserve Banks and the land
which they occupy are privately owned. They pay local real
estate taxes thereon. That is even true of the building here in
Washington where the Federal Reserve Board of Governors meet.
Employees are not governed by Civil Service rules like the
Government employees. The President of the United States
rubber-stamps each new Federal Reserve Board Chairman as if he
were a public official; but the minute he is confirmed, the
Chairman of the Federal Reserve Board passes through private
doors, and behind those doors the private Federal Reserve System
does exactly as it pleases, issuing or withholding money and
credit at will.

Federal Reserve stock is issued only to banks, which in turn
are controlled by other powerful private interests. Banks which
own this stock are called "Member Banks." Your own bank may be a
member. If it is, your bank has paid money into the Federal
Reserve in two forms. One form is ownership of Federal Reserve
stock. This bears interest in the form of dividends of only 6%.
But also, your bank is required to turn over a certain percentage
of its own deposits to the Federal Reserve Bank in your district.
Those deposits, called "Reserve deposits", bear no interest to
your bank. Even so, Member Banks of the Federal Reserve System
do receive certain services and advantages from membership, but
they are also burdened and restricted in important ways. As a
result, more and more banks have been withdrawing as members of
the Federal Reserve System. Smaller banks especially have been
pulling out for a breath of fresh air. Like any monopoly
threatened with competition, the Federal Reserve money monopoly
panicked. The "Fed" generally ignores Congress except when faced
with trouble.

When trouble does flare up, the "Fed" always runs to Congress
for help. Most of all, they count upon a favorable hearing from
the Banking Committees of the Senate and House; and the Wisconsin
twins--Senator William Proxmire and Congressman Henry
Reuss--never fail to oblige. And so earlier this year, Congress
passed a new law to rescue the Federal Reserve--a sort of a Union
shop for banks. It requires even non-member banks to place
interest-free deposits with the Federal Reserve System. What is
more, it creates a bureaucratic nightmare for all small banks.
As usual, the little guy is being squeezed out in favor of big
money. The alleged excuse for this new Act is that it's needed
to promote financial soundness of our nation's banking system.
The argument is very simple. Supposedly, the new law is to help
guarantee the safety of the underlying assets of your bank. Your
bank is now forced to place a fraction of its assets in the
Regional Federal Reserve Bank. Your bank cannot use those funds,
and so we are told it cannot lose them.

But now, my friends, consider this. The Federal Reserve Banks
are themselves claiming to have assets they do not have--gold
assets. So your bank stands to lose everything that it deposits
in the Federal Reserve Bank. And, of course, if your bank loses
everything, so do you! You have the option of either making or
not making deposits to your bank, but your banker no longer has
any such option. He is forced to be a depositor to the Federal
Reserve Bank in your region, and the Federal Reserve Bank does
not have part of the assets it claims to have; because, my
friends, the monetary gold hoard of the United States is not
owned by the United States Treasury. Instead, title to the gold
has belonged to the Federal Reserve System since 1934. The
Treasury is only the custodian while the Federal Reserve Banks
are the title owners, and they are now owners of gold that is
long gone. They are claiming assets that do not exist.

Every Saturday the New York Times publishes the abbreviated,
unaudited financial statement of the Federal Reserve System.
Almost all of the assets boil down to nothing but paper, with one
major exception. That is the item titled "Gold Stock." The
current value listed is slightly over $11,000,000,000--that is
11,000 million dollars, but that is at the meaningless official
price of gold, a little over $40 per ounce. The real value at
current market prices is closer to $200,000,000,000. That is the
Federal Reserve "Gold Stock" so called. It is by far the biggest
asset of the Federal Reserve Banks on paper. The quantity held
by each bank varies, but all 12 Regional Banks own portions of
that Gold Stock.

My friends, America's monetary gold hoard is often referred to
as the Treasury's gold, but that is not correct. The Federal
Reserve Banks have title to the gold through their Gold Stock.
The Treasury only acts as a depository or custodian for the gold.
For example: The famous United States Bullion Depository at Fort
Knox is really just a giant safety deposit box. The owner of the
gold is the depositor, the Federal Reserve System.

For my listeners in business, financial and banking circles, I
feel I should drive this point home in one more way. You can see
what I am saying if you will simply compare the Balance Sheets of
the Treasury and the Federal Reserve System. First look at the
Federal Reserve Balance Sheet. On the Asset side you will see
the Gold Stock item, formerly called "Gold Certificates." To be
concrete, for example, on October 22, 1980, the Gold Stock value
was listed as $11,165,000,000. Now look at the Treasury Balance
Sheet for that day. You will find the same figure, but on the
Liability side. So the Federal Reserve is a creditor with regard
to the gold, and the Treasury is a debtor--that is, the Federal
Reserve is the depositor of the gold while the Treasury is only
the custodian.

My friends, I realize that all this may be rather involved,
but also it is vitally important because the facts I have been
discussing provide the basis for our second avenue of action to
try to SAVE AMERICA. I want to make these details available to
you so that you can refer back to them from time to time; but let
me recap the basic points to remember:

First, and very important. The Federal Reserve System is a
private Central Banking System. It is not an agency of the
United States Government.

Second: The owner of America's monetary gold hoard since 1934 has
been the Federal Reserve System; and the gold, carried as "Gold
Stock", is by far the largest asset claimed by the Federal
Reserve Banks.

Third: The United States Treasury does not own this alleged
monetary gold. Instead, the Treasury acts only as a custodian
for the Federal Reserve gold.

My friends, the soundness of America's entire banking system
is now tied directly to the Federal Reserve System, and the
Federal Reserve is counting assets that it does not have--gold
assets. The gold has been spirited away from Fort Knox and other
Treasury Bullion depositories.

It is in your financial interest to make sure that your bank
deposits are safe. It is in the interest of your banker to make
sure that his deposits with the "Fed" are safe; and all other
things being equal, it's in the interest of the "Fed" to make
sure that its giant gold deposits with the Treasury are safe and

So I am now ready to suggest what we can start doing through
the banking system itself. To begin with, please go to your bank
to obtain some information. The information you need concerns
the Federal Reserve Bank which serves your region. There are 12
Federal Reserve Banks located respectively in: New York, Boston,
Philadelphia, Richmond, Atlanta, Cleveland, Chicago, Minneapolis,
St. Louis, Kansas City, Dallas, and San Francisco. Find out
which one of these is the one which banks in your Region deal
with, and find out its address. In addition, find out the name
of the President of that Federal Reserve Bank and the names of
every one on the Board of Directors.

My friends, you will no doubt have to speak to a bank officer
to obtain all this information, and that's good. Speak to the
highest officer you can in your bank, because when you ask for
all those details about the Federal Reserve Bank in your Region
you're likely to raise some eyebrows. Hardly anyone ever comes
in with a question like this. If he asks why you want the
information, tell him you intend to write some letters and will
be glad to give him a copy. Make it clear though that you are
not writing the Federal Reserve to complain about your own bank.
You should have no difficulty in getting the address of your
Regional Federal Reserve Bank and the names of its President and
Directors. In the unlikely event, my friends, that you do
encounter any resistance, just keep in mind that you have a legal
right to this information. As a depositor, you are a creditor of
your bank, which in turn is a creditor of the Federal Reserve
Bank; and both you and your bank have the right to seek
assurances that your money is safe.

Once you have this information, what you should do next
depends on where you are. If your banking Region is served by
any Federal Reserve Bank except the NEW YORK Federal Reserve
Bank, then it is time to write some more letters. But the New
York Federal Reserve Bank is a special case. If that is the one
which serves your Region, do not write any letters at this time.
on to the information you have obtained about its address and

Now here is what to do if your Region is served by any of the
other eleven (11) Federal Reserve Banks which I listed earlier.
I urge you to write a letter to the President of the Federal
Reserve Bank and also to each of its Directors. I realize this
is a lot of work, my friends, but nothing less than our survival
is at stake. We cannot cut corners. Every letter should be
typed or written separately in order to have a personal impact,
but it's all right to use the same wording to the President and
each of the Directors.

To get you started, here's the outline of what I suggest you
write. As in the past, feel free to modify the wording to fit
your own concerns and your own way of expressing things. That
will help to personalize and vary the letters they will be
receiving. Other listeners, after all, will be writing to them
too; but whatever you do be sure to refer to Senator Proxmire, as
you will hear in a moment. Address each letter to:

President, or Director
Federal Reserve Bank (of whatever city) at the Federal Reserve
Bank address.

"Dear (so and so):

I am writing to you because of my declining confidence in the
banking system of the United States. I am one of a growing
number of people with similar concerns. As a key official in the
banking life of our nation, my hope is that you will take action
to help restore confidence before it is too late.

To illustrate my growing concerns, I'm enclosing a photo copy
of a letter which I sent recently to Senator William Proxmire.
As Chairman of the Senate Banking Committee, Senator Proxmire
should be able to reassure the public about banking matters, but
my correspondence with Senator Proxmire for several months has
had the opposite effect. Instead of reassuring me, Senator
Proxmire's replies to serious questions are alarming me; and as I
discuss this with all my friends and neighbors, they too are
becoming more and more worried.

Since Senator Proxmire is only managing to reduce confidence in
our banks by his behavior, I believe that I should turn to you
for help. If elected representatives will not do their duty,
perhaps responsible banking officials will.

My basic concern is one which I believe you, as a Federal
Reserve official, should share. I believe that the United States
Treasury has been negligent or even worse in acting as custodian
of the Federal Reserve gold. Like many other people, I am
convinced that it is time for a physical inventory of the gold
stocks in Federal Depositories. There may be little or no gold
left at all. If the Treasury has defaulted on its obligation to
protect the Federal Reserve gold, we are in deep trouble indeed
as a nation; and the Federal Reserve System is counting assets
listed as gold stocks which do not exist.

As a concerned citizen and bank depositor, I appeal to you for
help. I respectfully urge you to use your authority to press for
a physical inventory of the Federal Reserve gold in Treasury
vaults. There is no other way to stop the spreading doubts about
America's entire banking system."

(End of letter, followed of course by your signature.)

My friends, now you know why I suggested that you make a
supply of good photo copies of your next letter to Senator
Proxmire. You will want to enclose a photo copy of your Proxmire
letter with each letter to a Federal Reserve President and
Director. By doing this, my friends, we can accomplish two
things at once. For one thing, Federal Reserve System officials
all across America may become a little perturbed at Senator
Proxmire. They will not be pleased to hear that Proxmire is
alarming you and others by his behavior. If even one Federal
Reserve official should write a note of displeasure to Proxmire,
it will have its impact.

But aside from Proxmire himself, we are beginning to open up a
whole new avenue of action through the banks. For one thing,
action could take place through the Federal Reserve System itself
to inventory the gold because, as I explained earlier, 11 of the
12 banks were originally intended for show, but they do have
power. The New York Federal Reserve Bank is now tightly
controlled by the Bolsheviks who want to destroy America, but the
other 11 Banks are another matter. Their Directors are
indoctrinated basically to follow the lead of New York. For the
most part they are not given the inside track about the most
secret plans, and so they could decide to flex their muscles in
ways contrary to the wishes of the New York Bank. Specifically,
they could decide that a gold inventory is a good idea, and they
could help make it happen, my friends.

At still another level, be sure to give your banker copies of
your latest letter to Proxmire and to the Regional Federal
Reserve President and Directors; because your banker, like you,
has a tremendous stake in all of this. And even the American
Bankers Association should press the Federal Reserve System to
look into this question. They should demand that the 12 Regional
Bank Presidents raise this question with the Board of Governors
of the Federal Reserve System here in Washington.

My friends, I realize that all this is hard to digest at one
hearing, so I urge you to listen to it over and over again if you
need to until it all begins to sink in; because this is only the
beginning of our battle on a powerful new Second Front, and the
key to it all is the private corporation known as the "Federal
Reserve System."

Now it's time to give you my last minute summary. In this
AUDIO LETTER I've tried to alert you to some of the latest battle
fronts which are involved in the secret war now raging. During
this month of October 1980 there have been all kinds of rumors
that our hostages in Iran may soon be released. In Topic #1, I
reported to you how this came about, and why. It was set in
motion partly for reasons related to our national election four
days from now. But even more importantly, the release of our
hostages right now is intended to be one step on the path to
nuclear war. The Russians know this and want to avoid becoming
the targets of a Bolshevik-triggered American first strike, and
so Russian agents in Iran are trying hard to stop the
preparations for a release of our hostages at this time. But
even if this crisis should fizzle out, others are being set in
motion to take its place. One of these is already on the horizon
in Poland. If full scale revolution should erupt there, the
Russians are prepared to retaliate by means of geophysical

The true capital city of the Bolsheviks--New York City--may
very well suffer a massive earthquake. According to my last
minute reports, other geophysical warfare preparations are also
continuing. In AUDIO LETTER No. 55 I described how Russian
geophysical warfare techniques triggered the explosion of Mount
St. Helens last May. The final step in the process involved a
squadron of Cosmospheres firing their Charged Particle Beam
weapons from overhead. And as of October 26, squadrons of four
(4) Cosmospheres each were on station over several volcanic
mountains of the Northwest. These are: Mount St. Helens, Mount
Adams, Glacier Peak, and Mount Rainier. There is also a single
Cosmosphere, purely for observation, stationed high above Mount

My friends, the warring factions of the Bolsheviks, Big Oil,
and the Russians are bringing us closer and closer to open
all-out war. They are attacking and counterattacking on many
fronts; and if you want to stop our downward slide into
catastrophe, we too must take action on many fronts.

The TRUTH is a powerful weapon, and we must use it in every
way we can. Month by month I am trying to bring avenues for
action to your attention; and because more and more of you are
taking action, I believe there is a glimmer of hope for America.
Last month, for example, many of you did succeed in getting
LETTERS TO THE EDITOR published. Even the Washington Star
published one of them and gave it the headline "WHERE IS OUR

What we are trying to do together, my friends, can be learned
in only one way and that is by doing it. I know it is not easy,
but so far I believe you are doing a magnificent job, and I thank

Until next month, God willing, this is Dr. Beter. Thank you,
and may God bless each and every one of you.

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