"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".