Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Smokin' Joe
-- The 1914 Federal Reserve Note merely said that the note was "Authorized by the Federal Reserve Act of December 23, 1913" --

The "redeemable in gold" language is on the back of that note.

One reason the "lawful money" definition eludes me is that these notes were redeemable for gold or lawful money. The notes appear to be in the nature of some sort of deposit certificate, making them useful to conduct transactions without actually handling whatever it was that was on deposit at the bank.

The constitutional limitation you point out runs to the states, and aimed to prevent paper monetization of debt by the states, which, although I'm not studied on the history, I think had occurred prior to the constitution being adopted.

Money is a strange and powerful thing. A convenience over barter, a tool to facilitate commerce large and small. It should be created in proportion to agricultural and industrial production (which isn't always production, people are paid to demolish things, too), and destroyed after it has served its purpose.

58 posted on 08/26/2015 4:23:53 AM PDT by Cboldt
[ Post Reply | Private Reply | To 57 | View Replies ]


To: Cboldt
Silver and copper coin were also considered lawful money, (Specie) Silver and Gold by the Constitution (for the States, anyway), and copper or bronze coins have been in use even longer. In some areas, tobacco was used as currency during the colonial era. There are many media of exchange.

But, still getting back to basics, a "note" is a promise to pay, not currency. That promise to pay was repeated on the early FRNs, US Notes, and Gold and Silver Certificates.

That would seem to exclude paper as "money" and leave hard coin or bullion.

61 posted on 08/26/2015 4:38:50 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
[ Post Reply | Private Reply | To 58 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson