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To: processing please hold
The dollar is ultimately just another money supported only by faith that others will willingly accept it in the future in return for the same sort of valuable things it bought in the past.

The things we carry around today are not dollars. They are denominated in dollars. Their value depends upon the ability of the US Government to coerce people to use them. A real dollar (codified by US Law) is a quantity of silver unchanged since 1792. Miners used to bring their silver to a government mint which would stamp the silver into recognizable units in exchange for a small fee known as seignorage. This ended in 1964. The coins minted in that year and before have a value that does not depend upon government coercion. Most coins minted by the government since 1965 have been made to look like the old coins but essentially have no value apart from the government's ability to coerce their use. If you look up counterfeit in any reasonable dictionary, you will see a description of the coins (and bills) we utilize today.

ML/NJ

12 posted on 05/29/2007 4:41:10 PM PDT by ml/nj
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To: ml/nj

Thank you very much. I did not know that.


15 posted on 05/29/2007 4:52:53 PM PDT by processing please hold (Duncan Hunter '08) (ROP and Open Borders-a terrorist marriage and hell's coming with them)
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To: ml/nj
A real dollar (codified by US Law) is a quantity of silver unchanged since 1792.

Almost. Between 1873 and 1878, "Trade dollars" of a heavier weight, intended for use in purchasing trade goods from asian nations, were minted by the US, while the subsidiary silver coinage has been minted using less silver (than the definition of a dollar in silver under the 1792 Act) since 1853. During that 6 year period, and any other time silver dollars were not minted (e.g., 1905-20), actual practice supports the view that the legal definition of a dollar was different from the 1792 definition, albeit that definition has not been repealed.

Miners used to bring their silver to a government mint which would stamp the silver into recognizable units in exchange for a small fee known as seignorage. This ended in 1964.

That was, indeed, the original practice; I do not know when it ended. However, starting in 1878, statutes required the purchase of silver bullion to be minted into silver dollars. So our coinage was not limited to what citizens brought to the mint.

37 posted on 05/29/2007 6:34:53 PM PDT by DeaconBenjamin2
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To: ml/nj
Miners used to bring their silver to a government mint which would stamp the silver into recognizable units in exchange for a small fee known as seignorage. This ended in 1964.

That ended way before '64, pretty sure. Maybe 1857, when "foreign" coins were finally demonetized. Amsterdam/Holland was pretty much where this started. In those days you had to pay to store your metal, but the receipts traded just like money. They would expire though, and one never wanted to do that. Claim your metal at the bank. (I don't begin to even understand it - try http://www.mises.org/story/2564 ) for a background on "free coinage" and let me know what you think - why would people want to pay to store their money, unless safety was the reason. But "free coinage" - that was what it was called.
51 posted on 05/29/2007 7:20:10 PM PDT by Freedom4US
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