In 1979, the Helvetian Assembly passed the Federal Reserves Contingency Act which gave the authority to the Confederate Reserve to take any former holdings of the Federal Reserves. From 1980 to 1983, the Confederate Reserves conducted extractions, the two largest being the removal of gold form the United States Bullion Depository at Fort Knox and the Federal Reserve Bank of New York. International claims in 1997 portrayed that the actions by the Helvetian government was theft.
Formation & Expansion
In 1966, the Federal Charter gave monetary responsibility to the cantons of the confederation, which most designated the former United States dollar as the official currency. In two cantons, trading was a legal form of trade. The Canton of Sutter formed their own currency which was based around private banks. With this system, economic transaction was constricted locally. With the extension of the Helvetian state with the inclusion of Palacade, Helvetia wanted to finally connect the new canton economically to the Confederate government. In 1976, Zachary Birnen pushed for the creation of a central bank, one that would become the dominant banking reserve in the former United States. Under the 1976 Reserves Act gave monetary control to the Reserves Director, controlling inflation rates, printing of money and how much should be held in the reserves.
In 1979, Jonathan Williams sought to empower the current Director Kyle Melander, the first member of the Helvetian Nationalist Party in an executive position. The legislative branch, in control at the time by the Nationalists wanted to give the Director a lasting impression on the country, they implored him the power to seek and extract former Federal Reserve assets.