First Legal Tender Case in the United States

Introduction to First Legal Tender Case

First Legal Tender Case, a United States Supreme Court case (Hepburn v. Griswold) in 1870 that reviewed Congress’s right to pay its debts with unbacked paper money. The case was one of numerous suits protesting the use of $450 million issued under the Legal Tender Acts of 1862 and 1863 to repay loans. The court found the acts unconstitutional because they made the paper money legal tender for the payment of all debts, including ones contracted before the passage of the acts, a violation of the obligation of contracts. The court also noted that the Constitution of the United States prohibits payment of public debts with anything but gold and silver.” (1)

Resources

Notes and References

• Information about First Legal Tender Case in the Encarta Online Encyclopedia

Guide to First Legal Tender Case