11. The Kinds Of Money More Fully Described. Gold Coins

Having defined money and its substitutes and shown their relation to each other, and also what quantity of money is needed to transact the myriad exchanges made by the people, we will now describe more in detail the different kinds of money and substitutes that are in use.

1 Bolles, American Finance, page 222.

There are four gold coins, - the double eagle, the eagle, the half eagle, and quarter eagle. The double eagle is the largest, of the value of $20, and was authorized to be coined in 1849. The eagle is the oldest of all the gold pieces, and was authorized in 1792.

12. Gold Coins Are A Legal Tender

All of these coins are a full legal tender for the payment of debts, public and private. By this phrase is meant that individuals as well as the government are obliged to receive them from debtors in payment of their obligations. A creditor can not say to a debtor who offers to pay him in double eagles, "These are very heavy, I will not accept them; you must pay me in government notes." The debtor can rightfully reply, "You must take these or nothing, because the law says so, and that is final."

13. Silver Coins

The largest silver coin is the dollar, which was authorized in 1792, but discontinued by the act of February 12, 1873, and reauthorized and limited by the acts of 1878, 1890, and 1893. The other silver pieces still coined are the half dollar, quarter dollar, and dime. The silver dollar is a lull legal tender in payment of debts, but the other silver pieces are a legal tender only to the amount of S10. The minor coins consist of the nickel live-cent piece and the bronze cent. The five-cent piece was authorized by the act of May, 1866, and is a legal tender to the amount of 25 cents. The bronze cent was authorized two years later, and is a legal tender for the same amount.

14. The Kinds Of Notes

a. Greenbacks. The kinds of notes issued by the government and the national banks and their legal tender properties may next be explained. The greenback or legal tender note was first authorized in 1862, and is a legal tender for all debts, public and private, except duties on imports.

b. Gold Certificates. The gold certificates which circulate, to some extent, especially among the banks, are issued for gold, deposited with the assistant treasurer of the United States. Like the silver certificates, they are receipts for gold, which is left with the government, and must be given up when demanded to certificate holders.

c. Silver Certificates. The silver certificates authorized by the law of 1878, when the coinage of the standard silver dollar was resumed, are a legal tender for customs, taxes, and all public dues, and when so received may be reissued. They are not a legal tender between individuals, but only between individuals and the government.

d. Treasury Notes. The treasury notes issued by authority of the Sherman act of 1890 are a legal tender in payment of all debts, public and private, except when otherwise expressly stated in the contract, and shall be received for customs, taxes, and all public dues, and when so received may be reissued; and such notes, when held by any national banking association, may be counted as a part of its lawful reserve.

e. National Bank Notes. The national bank notes are issued by the national bank. "Every national banking association shall take and receive at par for any debt or liability to it any and all notes or bills issued by any lawfully organized banking association." They are therefore a legal tender between the banks, but can not be forced on individuals by any national banking association.

On the other hand, every national bank must take from an individual any national bank note tendered to it in payment of a debt.