why do we as Americans use federal notes as legal tender?

Question

The constitution specifically states that gold and silver is the only thing that can be used as legal tender for Americans yet, we don't use gold and silver but federal notes. I quess were not American citizens but federal citizens uh?????

Answer 1

The appropriate part of the Constitution reads: To coin money, regulate the value thereof, and of foreign coin... [Art. I, Sec. 8] There is no reference here to either gold or silver. Do not confuse this with the strictures of Section 10, which provides that the STATES may not issue money or make anything except gold or silver a tender in payment of debts. In short, there are no Constitutional objections to the issuance of paper currency. The Federal Reserve notes now used as money are technically IOU's authorized in Section 8 -- To borrow Money on the credit of the United States.

Answer 2

What would you suggest? Carrying gold and silver around? Wouldn't that make money banking a very difficult task. How far would you get without your credit card and debit card??? We left a Gold standard in the 30's due to necessity, and left Silver behind in the late sixties. Money is only as good as its backing..its value goes up, goes down..and has world wide value. The US dollar has been relatively stable throughout the years. The yen soars, then crashes. The euro is way up there today, but tomorrow, it may come tumbling down. IF we do not get a grip on Deficit, ours will tumble. The Bush administration has done more long term damage to the US dollar than any of us can understand. Good luck.

Answer 3

They have given you a lot of beating around the bush answers.

The answer is Nixon took us off the species standard and put us on the "full faith and credit" standard. this was done for economic reasons to better control the cash flow market. If you can control the amount of dollars in the market you can control inflation better. More dollars means greater inflation. Less dollars means less inflation. At any rate Gold and silver is still traded between countries, but; it is not used in currency because of the relative expense. The smallest gold coin we mint will cost you over 200 dollars. That is not very good for exchange.

Answer 4

this is a hard question because it's so complex. At one time we had bank notes that could be exchanged for gold and silver because of the weight these had. But we went off the gold standard during fdr and we went on the gold standard and off the silver standard before that. During the depression fdr made it illegal to own gold or silver in the sixties Kennedy tried to put us back on the silver standard so you can find some silver certicates.

Answer 5

It also states something about owning slaves, and their vote being only worth 2/3 of a person. You want to follow that law too??

All of the "notes" are representation of gold bullion that is owned by the US government (heard of Fort Knox?). Carrying $100 in gold coins would get awfully cumbersome. So paper money, or "notes" were devised to aid in the issue.

So technically speaking, we do use gold and silver (in our coins) as legal tender.

Answer 6

try to carry your pay check in gold. my allotment would definitely be too heavy the note is supposed to be back in gold but today the note is back by the strength and stability of the country.

Answer 7

thoroughly criminal and Constitutional. the proper of that argument is depending upon the superb courtroom ruling in McCulloch v. Maryland in which the superb courtroom determined that Congress had the flexibility granted with the aid of the structure to confirm a economic company and to authorize that economic company to problem circulating notes. that selection become made in 1819 and considering contributors of that courtroom were particularly contributors contained in the state conventions that ratified the structure and those Justices likely in my opinion knew and corresponded with contributors of the Constitutional convention that drafted the structure, excuse me at the same time as I settle for his or her interpretation of the structure over Giordano's.

Answer 8

Try spending a gold coin at a store if you are so unhappy about it.

Answer 9

rhsaunders is correct, including quotes.

Answer 10

they changed it