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Constitution provision for medium of exchange

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Todd Marshall posted on Fri, Sep 4 2009 9:45 AM

Why didn't the USA founding fathers incorporate something as important as "management of the medium of exchange" in the document?

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Answered (Verified) Bogart replied on Fri, Sep 4 2009 12:18 PM
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The Framers of the Constitution were very concerned about paper money and did not want a repeat of the experience of the Continental.  Here are the passages in the Constitution about making money:

Article 1 Section 8: Powers of Congress: To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

Note that Congress has the power to COIN money, not PRINT (Or worse electronically create money.).  And yes this means Congress does not have the power to establish a paper or other currency, the dollar, green back, etc unless directly convertable to some COIN.  Furthermore Congress certainly does not have the power to delegate this to a third party outside of its ability to regulate, except if it does not set the value of money at all and leaves this up to market forces.

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Saan replied on Fri, Sep 4 2009 11:44 AM

They understood tyranny, there is a provision though. Gold and silver

 Criminals, there ought to be a law.

Criminals there ought to be a whole lot more.   Bon Scott.

 

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Answered (Verified) Bogart replied on Fri, Sep 4 2009 12:18 PM
Verified by krazy kaju

The Framers of the Constitution were very concerned about paper money and did not want a repeat of the experience of the Continental.  Here are the passages in the Constitution about making money:

Article 1 Section 8: Powers of Congress: To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

Note that Congress has the power to COIN money, not PRINT (Or worse electronically create money.).  And yes this means Congress does not have the power to establish a paper or other currency, the dollar, green back, etc unless directly convertable to some COIN.  Furthermore Congress certainly does not have the power to delegate this to a third party outside of its ability to regulate, except if it does not set the value of money at all and leaves this up to market forces.

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