I've solved the Lawful Money Riddle

[Jaro]

Well, I think I've solved the lawful money riddle. What is meant by the term 'lawful money' is LEGAL TENDER US COINS. Which would then mean that redeeming FRNs in LM, should get you US coins at the bank, or endorsing a check with the LM demand language, should be considered as a deposit of LEGAL TENDER US COINS.

And they don't have to give you silver or gold coins, since non-precious coins are LTLM also, and they got a choice which LTLM to give as redemption. Simple.

Here are some simple definitions of "money" which are historically and legally based specifically related to the United States.


Money - a common commodity used to faciliate the barter system. Such commodities have predominately been gold, silver and copper coins but have also included tobacco, whiskey and even tulips in Europe at one time. Any common commodity can be "money" but some commodities have properties that are simply better for this purpose.

Lawful Money - A commodity that is controlled as far as weight, content or other criteria by a government. Examples would be Spanish gold and silver coins used in the United States up until about 1850 or Canadian Gold Maple Leafs today which can be accepted as payment but where that acceptance is not mandatory under US Law.

Legal Tender Lawful Money - Lawful money that's produced by the US Mint and where acceptance is mandated under the law for public and private debts. First defined and established under the Coinage Act of 1792 and most recently by the American Gold Bullion Coin Act of 1985 with subsequent revisions.

Legal Tender Currency -A promissory note backed by the government that is redeemable in Legal Tender Lawful Money where the acceptance for debts is required except as excluded under contract (i.e. since 1977 and prior to 1934 contracts could require payment in gold "legal tender" coins in the United States). Legal Tender currency is Constitutional based upon the Supreme Court decision in Julliard v Greenman based upon the authority of Congress to "borrow agianst the credit of the United States" in Article I Section 8 Clause 1 and it is not "money" as authorized by Article I Section 8 Clause 4.

In most cases today, the term "money" is really referring to Legal Tender Currency and not to money.



And this would pretty much mean that FRNs are LEGAL TENDER CURRENCY, and should be redeemable under the 12USC411 in LEGAL TENDER LAWFUL MONEY, i.e. US coins. Also regarding true lawful money, one dollar was defined as about one ounce of silver. So if you had a $1 FRN before 1933, you were entitled to redeem it for an ounce of silver coin. ALthough that might have been true until 1963.

BTW, the Federal Reserve people are either real stupid or liars. They claim that their worthless crap FRns are lawful money:
http://www.federalreserve.gov/faqs/money_15197.htm