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The value of Legal Tender Greenbacks swung wildly but trading was from 85 to 33 cents on the gold dollar. [citation needed] This resulted in a situation in which the greenback "Legal Tender" notes of 1862 were fiat, and so gold and silver were held, and paper circulated at a discount because of Gresham's law. The 1861 Demand Notes were a huge ...
The later United States Notes could not be used to pay customs duties or interest on the public debt, which could be paid only by gold and Demand Notes. Importers, therefore, continued to use Demand Notes in place of gold. In March 1862, Demand Notes were made legal tender. As Demand Notes were used to pay duties, they were taken out of ...
[7] [8] In 1986, the federal government introduced the American Gold Eagle coin series, the first gold money produced by the United States since the Great Depression. These coins are legal tender at their face value but the Mint offers them only as collectibles at their much higher bullion value, not as a form of payment by the government.
Butler, 95 U.S. 694 (1877), establishes that the law makes no legal distinction between the values of coin and paper money used as legal tender: A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin.
The alternative to a commodity money system is fiat money which is defined by a central bank and government law as legal tender even if it has no intrinsic value. Originally fiat money was paper currency or base metal coinage, but in modern economies it mainly exists as data such as bank balances and records of credit or debit card purchases, [3] and the fraction that exists as notes and coins ...
Gold and oil both offer investors unique benefits. / Credit: Getty Images/iStockphoto Gold's price surpassed $2,700 per ounce in October 2024, drawing renewed interest worldwide.
As an example, gold and silver coins from other non-U.S. countries are specifically exempted in U.S. law from being legal tender for the payment of debts in the United States, [11] so that a seller who refuses to accept them cannot be sued by the payer who offers them to settle a debt. However, nothing prevents such arrangements from being made ...
Gold and silver can both offer big benefits to your portfolio, but one could make more sense than the other right now. / Credit: Getty Images. Gold has been a hot investment lately.