dvk@mi-cec.UUCP (Dan Klein) (01/11/84)
I seem to recall hearing about a law that states that pennies may be refused if the total amount of pennies exceeds $50. A bank, however, is required to accept them. Another interesting note: The statement: "This note is legal tender for all debts public and private" used to be a bit more wordy. It used to say: "This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve bank". (That was circa 1950. Prior to that it said even more. Gold and silver certificates had further terms attached.) I wonder what "lawful money" is? -Dan Klein, Mellon Institute, Pittsburgh
johnc@dartvax.UUCP (John Cabell) (01/14/84)
>> I wonder what "lawful money" is?
Isn't that as opposed to "Chaotic money" or "neutral money"?
I suppose thxt lawful money would have to be nice to every
one and chaotic money, if it were a check, would bounce on
everyone. :->
--johnc
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Unix path: ...!decvax!dartvax!johnc
Universal id: 50
USnail: 4 Ridge rd., Hanover, NH 037550248leichter@yale-com.UUCP (Jerry Leichter) (01/17/84)
"Lawful money" on old bills: Up until 197?, American money was legally backed by gold (or silver?). You could theoretically take your dollar bill down to the Treasury at any time and demand your 1/35'th ounce of gold. A bill was marked as a "gold certificate" to indicate that it was merely a place- holder for gold in a government vault. When the amount of money in circulation could no longer be backed by the gold available, "silver certificates" were added. "Lawful money" was either of these, or the actual gold or silver. In 197? - some time during Nixon's first term, during a major international monetary crisis - the US went "off the gold standard"; your dollar bill is not even theoretically backed by gold. (In fact, the backing has been theoretical for a long time - since the 1930's - since between 193? (5?) and 197? American citizens were not allowed to own gold (I don't know how the exceptions for jewelry, gold fillings, etc. were formulated). Your dollar bill in principle was convertible to gold, but in fact the US would only do the conversion for other governments. Today, you can own all the gold you can afford - but the government is not under any obligation to convert bills to gold for anyone, private citizens or governments.) -- Jerry