Legal Tender

Legal tender in the United States

Legal tender, in its widest sense, an offer to perform a contract according to specified conditions. It also designates the coin and paper money which a creditor may be compelled to accept in payment of debts. Generally speaking, all kinds of United States money are legal tenders in ordinary transactions, either with or without limit as to amount. Specifically, gold coins are a legal tender for any amount; gold and silver certificates are not legal tenders; silver dollars, United States notes and the few United States treasury notes of 1890 still outstanding are unlimited tenders unless otherwise contracted; subsidiary silver coin are legal tenders for all dues to the amount of $10, and minor coin for all dues to the amount of 25 cents. National bank notes are not really legal tenders, but in ordinary business they pass as such. They are receivable at par in payment of dues to the United States, except duties on imports and for payments by the United States, except interest on the public debt or redemption of the national currency. Certificates of deposit payable to order are issued to national banks for United States notes; they bear no interest, and are chiefly used in the settlement of clearing-house balances and in the reserves of the banks. State banks are governed by varying local laws, and their circulation is almost wholly within the several States.

On May 27, 2011, Jason West in Vernal, Utah dumped 2500 loose pennies onto the counter of Basin Clinic when disputing a bill. The police there cited him with disorderly conduct for causing unnecessary alarm when the dumped pennies were strewn about the counter and the floor, but paying in pennies itself was not the reason to cite him.

See also

  • Currency
  • Gresham’s law
  • Standard of deferred payment
  • Bitcoin

Further Reading

  • Breckenridge, S. P., ‘Legal Tender’ (Chicago 1903);
  • Hepburn, A. B., ‘History of Coinage and Currency in the United States’ (New York 1903);
  • Hunt, A. R., ‘Treatise on the Law of Tender’ (Saint Paul, Minn., 1903);
  • Laughlin, J. L., ‘Economic Effects of Legal Tender,’ in Yale Review (Vol. X, New Haven 1902);
  • Smith, J. C., ‘Legal Tender: Essays’ (London 1910),
  • United States Revised Statutes, §§ 3584-3590, as amended.

legal tender Background

Resources

See Also

  • Legal Topics.
  • Greenbacks ; Legal Tender Act ; Revolution, American: Financial Aspects.

    Further Reading (Books)

    Ferguson, E. James. The Power of the Purse: A History of American Public Finance, 1776_1790. Chapel Hill: University of North Carolina Press, 1961.

    HarveyWalker/a. r.

    Further Reading (Articles)

    Rupee serves more as a legal tender than a pledge to redeem., Economic Times (New Delhi, India); July 28, 2005

    Legal tenders: ; Inmates learn horticulture as way of earning green on the outside, Sunday Gazette-Mail; December 19, 1999; Greg Stone

    Payments and the Concept of Legal Tender, The Reserve Bank of New Zealand Bulletin; September 1, 2007; McBride, Nick

    LEGAL TENDER OF EURO: QANDA ON NEW COMMISSION RECOMMENDATION., States News Service; March 22, 2010

    COMMISSION ADOPTS A RECOMMENDATION ON SCOPE AND EFFECTS OF LEGAL TENDER OF EURO BANKNOTES AND COINS., States News Service; March 22, 2010

    Arizona Lawmakers Continue Their Quest to Use Gold and Silver as Legal Tender, Arizona Capitol Times; April 12, 2013; Giles, Ben

    What’s legal tender?, The Scotsman; January 24, 2008

    Think your money is legal tender? Don’t bank on it, Belfast Telegraph; May 25, 2012; Paul Con nolly

    Legal Tender Cases, Encyclopedia of the American Constitution; January 1, 2000

    Australia Tender Notice: Future Fund Management Agency Seeks “Future Fund Management Agency legal services tender”, US Fed News Service, Including US State News; August 28, 2010

    Bank notes are not legal tender, even in our country, The Herald; August 26, 2011

    BROKERAGE COMMISSIONS, LEGAL TENDER REGISTRATION DUTIES DROP, Info-Prod Research (Middle East); September 9, 2007

    EGYPT: BROKERAGE COMMISSIONS, LEGAL TENDER REGISTRATION DUTIES DROP., Info-Prod Research (Middle East); September 9, 2007

    Legal tender, Supply Management; February 17, 2005; Hitchcock, Clare

    Abolish Legal Tender, Freeman; February 1, 1999; Moseley, D. Alexander

    Colorado Inventors Develop Legal Tender Receipt Authorization Seeking Process, US Fed News Service, Including US State News; March 20, 2007

    Arizona Gov. Jan Brewer Vetoes Bill to Make Gold and Silver Legal Tender, Arizona Capitol Times; May 2, 2013; Duda, Jeremy

    Cold hard cash still legal tender despite barriers along the way., New Zealand Herald (Auckland, New Zealand); May 17, 2012

    5c Coins Legal Tender, Says Reserve Bank, Daily News (South Africa); May 22, 2013Kelantan dinar not legal tender (HL), New Straits Times; August 14, 2010; Aidi Amin


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