History of paper currency Part 1 of 2

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Definition of "Dollar"

Bouvier's Law Dictionary, 1856 Edition
DOLLAR, money. A silver coin of the United States of the value of one hundred cents, or tenth part of an eagle.

2. It weighs four hundred and twelve and a half grains. Of one thousand parts, nine hundred are of pure silver and one hundred of alloy. Act of January 18,1837, ss. 8 & 9, 4 Sharsw. Cont. of Story's L. U. S. 2523, 4; Wright, R. 162.

3. In all computations at the custom-house, the specie dollar of Sweden and Norway shall be estimated at one hundred and six cents. The specie dollar of Denmark, at one hundred and five cents. Act of May 22, 1846.

CENT, money. A copper coin of the United States of the value of ten mills; ten of them are equal to a dime, and one hundred, to one dollar. Each cent is required to contain one hundred and sixty-eight grains. Act of January 18th, 1837, 4 Sharsw. cont. of Story',s L. U. S. 2524.

Blacks Law Dictionary, 1st Edition (1891)
DOLLAR. The unit employed in the United States in calculating money values. It is coined both in gold and silver, and is of the value of one hundred cents.
CENT. A coin of the United States, the least in value of those now minted. It is the hundredth part of a dollar. Its weight is 72 gr., and it is composed of copper and nickel in the ratio of 88 to 12.

Ballentines Law Dictionary, 2nd Edition (1930 & 1948)
Dollar (dol'ar). " There is no ambiguity about the word 'dollar'." If any word has a settled meaning at law, and in the courts, it is this. It can only mean the legal currency of the United States, not dollars vested in lands. A dollar is the volume of money, and is by law made a money unit value of the value of one hundred cents. See State v. Downs, 148 Ind. 324, 327.

Blacks Law Dictionary, 3rd Edition (1933)
DOLLAR. The unit employed in the United States in calculating money values. It is coined both in gold and silver, and is of the value of one hundred cents.
Thompson v. State, 90 Rex. Cr. R. 125, 234 S. W. 406, 408.

Blacks Law Dictionary, 4th Edition (1951)
DOLLAR. The unit employed in the United States in calculating money values. It is coined both in gold and silver, and is of the value of one hundred cents.
People v. Alba 46 Cal.App.2d 859, 117 P.2d 63. Money or currency issued by lawful authority and intended to pass and circulated as such. Neufield v. United States, 118 f,2d 375, 387, 73 App.D.C. 174.
The dollar of nine-tenths fine consisting of the weight determined under the 31 U.S.C.A. § 321, shall be the standard unit of value, and all forms of money issued or coined shall be maintained at a parity of value with this standard. 31 U.S.C.A. § 314.

Blacks Law Dictionary, 4th Edition Revised (1957)
DOLLAR. The unit employed in the United States in calculating money values. It is of the value of 100 cents. People v. Alba, 46 Cal.App.2d 859, 117 P.2d 63.

Money or currency issued by lawful authority and intended to pass and circulated as such. Neufield v. United States, 118 f,2d 375, 387, 73 App.D.C. 174.

Blacks Law Dictionary, 5th Edition (1968)
Dollar. The money unit employed in the United States of the value of one hundred cents, or any combination of coins totalling one hundred cents.

Blacks Law Dictionary, 6th Edition (1979)
Dollar. The money unit employed in the United States of the value of one hundred cents, or any combination of coins totalling one hundred cents.

Cent. A coin of the United States, the least in value of those now minted. It is the hundredth part of a dollar.

Blacks Law Dictionary, 7th Edition (West Group 1999)
(No definition for "dollar" or "cent" found)


Ballentines Law Dictionary, 3rd Edition (1969) dollar.
The legal currency of the United States; State v Downs, 148 Ind 324, 327; the unit of money consisting of one hundred cents. The aggregate of specific coins which add up to one dollar. 36 Am J1st Money § 8. In the absence of qualifying words, it cannot mean promissory notes, bonds, or other evidences of debt. 36 AM J1st Money § 8. (Emphasis Added)

American Jurisprudence, Volume 36, § 8
[T]he term "dollar" means money, since it is the unit of money in this country, and in the absence of qualifying words, it cannot mean promissory notes or bonds or other evidences of debt. The term also refers to specific coins of the value of one dollar. (27 Ohio Jur pp. 125, 126, § 3), (United States v. Van Auken, 96 US 366, 24 L ed 852)

Black's Law, Second Pocket Edition (1996) Federal Reserve Note
Federal reserve note. The paper currency in circulation in the United States. The notes are issued by the Federal Reserve Banks, are effectively non-interest-bearing promissory notes payable to bearer on demand, and are issued in denominations of $1, $5, $10, $20, $50, $100, $500, $1,000, $5,000, and $10,000. (Emphasis Added)

Title 18 § 8. - Obligation or other security of the United States defined The term ''obligation or other security of the United States'' includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of
deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps. (Emphasis Added) Link

Today’s coins are they different than the one produced by the mint years ago?

History of composition

The strange thing about money is the way it has changed, over time from being valuable commodities (such as gold and silver) to becoming pieces of paper with promises to pay the gold or silver to pieces of paper that are "legal tender for all debts public and private" to pieces of paper that promise to give you the other pieces of paper (i.e. cheques) to electronic entities that tell you how much numbers of these pieces of paper you have.

We have given up our real money for fiat money and we have given up our fiat money for promises to pay fiat money. What a wacky world we live in.

A common misconception is that paper currency is money. Currency is a form of money but it is, by far, not the predominant form of money today. In today's world, money is created by bankers at the stroke of a pen by issuing debt. Similarly, money is destroyed when a loan is repaid or, worse, when loans are defaulted on.

On the other hand, coins made of gold or silver may not necessarily be legal tender, if they are not fiat money in the jurisdiction where they are preferred as payment.


The Coinage Act of 1965 states (in part):
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes and dues. Foreign gold or silver coins are not legal tender for debts.

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts. 31 USC § 5103 - Legal tender | Title 31 - Money and Finance | U.S. Code | LII / Legal Information
Institute http://www.law.cornell.edu/uscode/text/31/5103

My question is why I have to accept them?
There is, however, no federal statute that a private business, a person, or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise.

Lawful money in Indiana.

If In trade operations with foreign countries Iran does not limit itself to dollars, and any state is free to use its own currency, Bahmani is quoted as saying by Russia's Itar-Tass news agency. He also added that if any client state wants to pay in gold, Iran would accept it without hesitation. http://rt.com/news/iran-gold-currencies-oil-453/

We were never short of silver in the North American Continent.
Comstock Lode http://en.wikipedia.org/wiki/Comstock_Lode


It's hammer time "Foreign gold or silver coins are not legal tender for debts".