Re: Banking Secrecy and Nazi Gold

[frissell@panix.com]

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At 07:50 PM 5/7/97 -0500, Igor Chudov @ home wrote:
>According to americal common law, as I understand it, no one can get
>a valid title to the property from someone who did not have such title.
>
>E.g., if you steal Vulis's car and then sell it to me, I will not have
>the title to the car and will have to return it back to Vulis (and may
>be able to try to recover my loss from you). The same will be true if
>you lend the stolen car to me -- he can get it back if he proves that it
>is his.

The thief's ownership of personal property is good against the whole world
save the true owner. 

"18. In general, possession constitutes the criterion of title of 
personal property, because no other means exist by which a knowledge of the 
fact to whom it belongs can be attained. A seller of a chattel is not, 
therefore, required to show the origin of his title, nor, in general, is a 
purchaser, without notice of the claim of the owner, compellable to make 
restitution; but, it seems, that a purchaser from a tenant for life of 
personal chattels, will not be secure against the claims of those entitled 
in remainder. Cowp. 432; 1 Bro. C. C. 274; 2 T. R. 376; 3 Atk. 44; 3 V. & B. 
16."

http://www.constitution.org/bouv/bouviert.txt  (Bouvier Law Dictionary a fun
Net resource) 

In the case of money (including gold) and other fungible commodities it can
be very hard to determine who owns what once it is out of possession because
it all looks alike.

>Lending stolen money (or stolen golden teeth) to banks is no different
>than lending stolen cars.
>
>American law does not have to apply to Switzerland, but I find that 
>particular part of it to be just. The issue, of course, is coming up
>with the proof.

Most of the assets involved (by volume and value) were the property of
governments that had been conquered by Germany or property confiscated from
German citizens.  Unfortunately, German citizens (like American citizens) are
not protected by international law from predation by their own government. 
Private citizens of conquered countries would be protected but proof will be
hard.  

All of these issues were debated at length in 1946 and settled by the
Washington Agreement.  The U.S., Britain, and France sat on the gold that
Switzerland transferred to it for 50 years (in the basement of the FRB NYC)
parcelling it out in dribs and drabs mostly to the treasuries of the
conquered nations.  They still have a fair chunk of it  and are trying to
figure who to give it to.  I guess holding other people's gold is OK some of
the time.

Article II.2 of the Washing ton Agreement stipulated: 

"The Allied Governments declare on their part that, in accepting this amount,
they
waive in their name and in the name of their banks of issue all claims
against the
Government of Switzerland and the Swiss National Bank in connection with gold
acquired during the war from Germany by Switzerland. All questions relative
to such
gold will thus be regulated." 

Switzerland transferred appox 1,658,000 oz of gold to the Allies with a
current value of $568,750,000.

DCF


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