The Background US ConstitutionCoinage Act 1792 & 1964 Federal Reserve Act
Federal Reserve Act● USC Title 12 Chapter 3● Enacted December 23, 1913● Establishes The Federal Reserve System as the central banking system for the United States.● Granted authority to issue Federal Reserve Notes as Legal Tender.
USC Title 12 Chapter 3 Sub Chapter XII Section 411●Federal reserve notes...shall be obligations of theUnited States...shall be redeemed in lawful money on demand at the Treasury Department of the United States
Key Words to Define● Note: a writing acknowledging a debt and promising payment.● Legal Tender: money that is lawfully accepted for payment of a debt or obligation...All legal tender is money but not all money is legal tender.● Redemption: to purchase back; to regain possession by payment of a stipulated price.● Lawful Money:...???? “see President Richard Nixon 1971.”
US Constitution Article 1 Section 8To coin money, regulate the value thereof, and offoreign coin, and fix the standard of weights and measures
Coinage Act of 1792● Section 1: Establishes the US Mint regulating the coins of The United States● Section 9: Sets that coins be minted of Gold, Silver, and Copper.● Section 9: Establishes the denominations and values for these coins as Eagles, Half Eagles, Quarter Eagles, and Dollars and Cents● Section 20: Money of Account for the United States to be expressed in Dollars
Key Words to Define● MONEY: Gold, silver, and some other less precious metals...● DOLLAR: money. A silver coin of the United States of the value of one hundred cents, or tenth part of an eagle.● EAGLE, money. A gold coin of the United States, of the value of ten dollars Source: Bouviers Law Dictionary 6th Edition 1856