The Formation of the Legal Tender Acts In 1862 the American civil war was raging and war time expenditures had depleted the treasury of all its gold and silver. A fight for survival caused a Congressman to deal with the dilemma by suggesting the federal government print U.S. notes and decree them legal tender for all debts public and personal.
The federal govt passed legal tender legal guidelines and circulated U.S. notes greenbacks to maintain alone for the duration of a time of crisis and want. Under the authority of legislation these notes had been nearly as good as gold in addition to the govt became an alchemist.
The Early Influence Since the federal government employed these notes to pay out its debts the provide of currency began flooding the marketplace along with the notes started to reduce their value. How can you get free money from the government In July of 1864 the notes hit a reduced of 2.85 for a single dollar in gold coin questioning the legitimacy from the legal tender legal guidelines.
The initial Legal Tender Circumstance Alongside came Mrs. Hepburn who borrowed a whopping 11250 in gold and silver coin from Mr. Griswold. When it arrived time for you to fork out up Mrs. Hepburn made available Mr. Griswold greenbacks. Not getting a fool Mr. Griswold rejected Mrs. Hepburns tender and demanded gold and silver coin.
A lawsuit was filed plus the two began battling it out in courts where Mr. Griswold claimed the govt had no constitutional authority to decree paper cash legal tender and Mrs. Hepburn the opposite. The situation went all of the way as much as the Supreme Court wherever a choice needed to be crafted did Congress have the electric power to decree paper cash payment for all debts public and private
The Court hemmed and hawed analyzed it using this method and analyzed it that way but at some point Chief Justice Chase held considering the vast majority of the Court and determined the answer was NO Congress didnt possess the constitutional authority for like a legislation. Mr. Griswold won and Mrs. Hepburn had to shell out in gold and silver coin. Was justice finished
Revisiting Legal Tender Legal guidelines A year later a further Supreme Court case was heard exactly where Mrs. Lee desired to become compensated again for just a wrong dedicated against her by Mr. Knox who unlawfully took her sheep. The composition belonging to the Court had improved as President Ulysses Grant had appointed two new justices about the day that Hepburn v. Griswold was resolved. This time the answer was diverse. The Court ruled that Mr. Knox was entitled to pay Mrs. Lee in greenbacks as absolutely the govt had the power to decree paper bucks payment for all debts public and private under the authority to carry on war.
Legal Tender while in Peace Time For particularly a while there was peace as well as the government had no war it needed to combat. So a question arose could Congress carry on to compel collectors to accept paper revenue below the authority to carry on war when none existed
Julliard marketed bales of cotton to Greenman and wanted to paid in gold and silver coin. No reported Greenman I will pay out you in U.S. notes. Back again for the Supreme Court went the legal tender legal guidelines but this time the problem was did the authorities possess the authority to decree paper bucks legal tender in days of peace
On this situation the case hardly designed a splash in addition to the Court ruled eight to one that in war or peace the federal govt had the authority to decree paper dough legal tender. Why Well surely the authority to borrow coupled using the authority to coin funds presented the authorities with this sort of a perfect.
So Now we have now Paper Currency From 1884 when Julliard v. Greenman was determined until eventually presently the courts have ruled which the national govt has the authority to decree paper payment for all debts public and personal. The actual fact that present-day paper income is issued from the Federal Reserve rather than Congress is lead to to get a completely different discussion. How can you get free money from the government
