Jo Xappie
Clearfield Doctrine
"Governments descend to the Level of a mere private corporation, and take on the characteristics of a mere private citizen...where private corporate commercial paper [Federal Reserve Notes] and securities [checks] is concerned. ... For purposes of suit, such corporations and individuals are regarded as entities entirely separate from government." -
Clearfield Trust Co. v. United States 318 U.S. 363-371 (1942) What the Clearfield Doctrine is saying is that when private commercial paper is used by corporate government, then Government loses its sovereignty status and becomes no different than a mere private corporation.
As such, government then becomes bound by the rules and laws that govern private corporations which means that if they intend to compel an individual to some specific performance based upon its corporate statutes or corporation rules, then the government, like any private corporation, must be the holder- in-due-course of a contract or other commercial agreement between it and the one upon whom demands for specific performance are made.
And further, the government must be willing to enter the contract or commercial agreement into evidence before trying to get to the court to enforce its demands, called statutes.
This case is very important because it is a 1942 case after the Erie RR v. Tomkins 304 U.S. 64, (1938) case in which the Legislatures and Judiciary changed from legislating under "Public Law", which was in consonance with the CONstitution, to legislating under "Public Policy" according to the wishes of the "Creditors of the US Corporation".
Printed copy · Anthology Volume 4, page 154
