I’ve prepared a short 15-page summary on what the U.S. Constitution’s provisions on money mean. It summarizes pp. 1-177 of Edwin Vieira, Jr.’s book Pieces of Eight, which is out of print. The article also can be found in my archive on that site.
Pressed for time? Here’s a 6-sentence summary. Only silver and gold coins are constitutional Money, and Money in the Constitution means only silver and gold coins. Neither the states nor federal governments may issue paper money, a.k.a. bills of credit. The dollar is the Money-Unit or unit of account, and it’s a silver coin with 371.25 grains of fine silver. The federal government, but not the states, may coin Money, with the mint being open to the public, i.e., anyone can get bullion minted into coins; and vice versa, anyone can melt coins down for commercial use. The federal government may borrow Money (again coins) on its credit but may not obtain forced loans. Legal tender can only be silver and gold coins.
Consequently, the current money of the Federal Reserve and the Federal Reserve itself are unconstitutional. The Constitution enables a free market in money in which its supply is determined by the public, not the government, whose role is limited to coining Money, setting the Money-Unit, and “regulating” the metal content (making known or setting out the “Value”) of other coins relative to the standard.
3:33 am on March 17, 2010
