Federal Reserve Defines Lawful Money

[martin earl]

I will point out the Federal Reserve has no authority to define 'lawful money' for anyone or anything but itself and the District of Columbia, same for the SCOTUS.

I will counter that historically, the law of the land, common practice and the founding documents make clear what lawful money is and was in the Republic. Anyone who says it was not known or defined in law and in the hearts and minds of the people is an outright liar or ignorant to the point their opinion is irrelevant on the subject.

[shikamaru]

I will point out the Federal Reserve has no authority to define 'lawful money' for anyone or anything but itself and the District of Columbia, same for the SCOTUS.

I will counter that historically, the law of the land, common practice and the founding documents make clear what lawful money is and was in the Republic. Anyone who says it was not known or defined in law and in the hearts and minds of the people is an outright liar or ignorant to the point their opinion is irrelevant on the subject.

The founding documents don't mention anything concerning "lawful money". In fact, it doesn't even use the term.

Coinage Act of 1792 uses the term "lawful tender".

"Lawful money" is an older term coming from England.

[martin earl]

The founding documents don't mention anything concerning "lawful money". In fact, it doesn't even use the term.

Coinage Act of 1792 uses the term "lawful tender".

"Lawful money" is an older term coming from England.

I agree that term was not used or defined in legal diction, but it was understood. My point is there was not the sheer ignorance (or outright lies) back then of what the term meant or would have meant and that meaning would have been recognized for generations if not thousands of years before the founding of the Republic.

Good grief, the reason Congress was forced into the District of Columbia was because it could not pay the Continental army (or rather would not redeem its private issued debt notes) in Gold or silver coin!

Do some research on the "Pennsylvania Mutiny of 1783". Ever hear the term "not worth a continental"?

Back then, nobody had any question what "lawful money" was nor what paper money was to be redeemed for. Today, that may not be the case. BUT to

conceive that in 1913 or 1933 the authors of 12-USC 411 did not know, without question, what "lawful money" is and was is an untenable position and ignores not only history and common practice and understanding but common sense as well.

[Chex]

"Lawful money" is an older term coming from England.

Well this book doesn't say that.

BANKING LAW OF NEW YORK CHAPTER 2 OF THE CONSOLIDATED LAWS Google Books

BANKS. ARTICLE 3. Lawful money reserve. page 84 of 497 at §67

[shikamaru]

Well this book doesn't say that.

BANKING LAW OF NEW YORK CHAPTER 2 OF THE CONSOLIDATED LAWS Google Books

BANKS. ARTICLE 3. Lawful money reserve. page 84 of 497 at §67

Note the date of the link you provided: 1913.

Here are statutes from 1822 from Britain: link