Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: cleoning
Article 1 Section 10 reads in part: "No state shall ... make anything but gold and silver coin a tender in payment of debt"

This just means that states can't print their own currency. I suppose a state could pass a law allowing debts owed to the state to be paid in gold or silver, but I doubt any state does that.

4 posted on 08/18/2003 2:32:08 PM PDT by Modernman
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Modernman

To: cleoning
Article 1 Section 10 reads in part: “No state shall ... make anything but gold and silver coin a tender in payment of debt”
;
This just means that states can’t print their own currency. I suppose a state could pass a law allowing debts owed to the state to be paid in gold or silver, but I doubt any state does that.


That is not what it means. It is referring to legal tender not the creation or stamping of money. It says that the only money that can be used to complete a legal transaction is gold or silver.

ie: tender for payment of a debt.

tender meaning a legally recognized means of exchange.

I am not a big wiki fan but they were convenient and i will say they have it right up to this point, you can google it yourself if you feel it is incorrect.

Legal tender
From Wikipedia, the free encyclopedia

Legal tender or forced tender is payment that, by law, cannot be refused in settlement of a debt denominated in the same currency.

Legal tender is a status which may be conferred on certain examples of money, which may depend on circumstances including the amount of money. The term legal tender does not refer to the money itself.

So the congress has to power to create and regulate and both the states have the obligation and power to enforce.


23 posted on 04/12/2007 6:38:12 PM PDT by kokomoj0
[ Post Reply | Private Reply | To 4 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


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