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Federal firearms license government The Formation of the Legal Tender Acts In 1862 the American civil war was raging and war time expenditures had depleted the treasury of all its gold and silver. A fight for survival caused a Congressman to deal with the dilemma by suggesting the federal government print U.S. notes and decree them legal tender for all debts public and private.
The federal authorities handed legal tender laws and circulated U.S. notes greenbacks to maintain alone in the course of a time of crisis and need. Less than the authority of legislation these notes had been as good as gold and then the federal government became an alchemist.
The Early Result Because the government made use of these notes to pay its debts the provide of forex started flooding the market and therefore the notes commenced to drop their price. In July of 1864 the notes hit a reduced of 2.85 for 1 dollar in gold coin questioning the legitimacy of the legal tender laws.
The 1st Legal Tender Circumstance Together arrived Mrs. Hepburn who borrowed a whopping 11250 in gold and silver coin from Mr. Griswold. When it arrived time for you to pay up Mrs. Hepburn made available Mr. Griswold greenbacks. Not currently being a fool Mr. Griswold rejected Mrs. Hepburns tender and demanded gold and silver coin.
A lawsuit was filed and also the two began battling it out in courts just where Mr. Griswold claimed the authorities had no constitutional authority to decree paper dough legal tender and Mrs. Hepburn the opposite. The case went the many way as much as the Supreme Court the place a decision had to be designed did Congress possess the energy to decree paper capital payment for all debts public and private
The Court hemmed and hawed analyzed it using this method and analyzed it that way but gradually Chief Justice Chase held together with the majority in the Court and made the decision the solution was NO Congress didnt have the constitutional authority for these kinds of a regulation.