What about legal tender?

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2 responses to “What about legal tender?

  1. Warren Hathaway

    In the case of Julliard v. Greenman, the United States Supreme Court held that: 1) Congress had the power to make its obligations a legal tender in the payment of private debts, and 2) that this power was an implied power under the Constitution based on the case of McCulloch v. State of Maryland. The Court determined that this implied power of making the obligations of the United States a legal tender in payment of private debts was a means (incident) to the power (expressly) given to Congress to borrow money on the credit of the United States.

    However, the case of McCulloch v. State of Maryland was wrongly decided. The concept of implied powers does not exist in the Constitution. In fact, such a concept, if a doctrine would be in conflict with the doctrine that the Congress is a government of enumerated powers. As such, Congress does not have the power to make its obligations a legal tender in payment of debts, since the concept of implied powers does not exist in the Constitution. Since the power is not granted (expressly) to Congress, the power to make its obligations a legal tender in payment of private debts is not given to Congress under the Constitution of the United States of America. This is shown in the work, “The United States government does not have the power to make its obligations a legal tender” (online) by Dan Goodman.

    • Thanks for providing that background and reference. Salmon P. Chase, when he was Chief Justice of the Supreme Court, said, “The legal tender quality is only valuable for the purposes of dishonesty.” And so it is, but the government gets away with it anyway. Only by forcing acceptance of debased currency can government spend virtually without limit (deficit spending).

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