Posted by T. Mann on July 27, 1998 at 15:55:10:
In Reply to: With a link this time posted by Oh Really? on July 27, 1998 at 13:57:41:
In support of New Kid –“Yeah Really!!!”
Per your posted link to the legal tender cases.
… he offered and tendered to the plaintiff, in full payment, $22.50 in gold coin of the United States, 40 cents in silver coin of the United States, and two United States notes, one of the denomination of $5,000 and the other of the denomination of $100, of the description known as United States legal tender notes, purporting by recital thereon to be [110 U.S. 421, 422] legal tender, at their respective face values, for all debts, public and private, except duties on imports and interest on the public debt, and which, after having been presented for payment, and redeemed and paid in gold coin, since January 1, 1879, at the United States subtreasury in New York, had been reissued and kept in circulation under and in pursuance of the act of congress of May 31, 1878, c. 146; that at the time of offering and tendering these notes, and coin to the plaintiff the sum of $5,122. 90 was the entire amount due and owing in payment for the cotton, but the plaintiff declined to receive the notes in payment of $5,100 thereof; and that the defendant had ever since remained, and still was, ready and willing to pay to the plaintiff the sum of $5,100 in these notes, and brought these notes into court, ready to be paid to the plaintiff, if he would accept them.
Your comments are off-point for not less than the following reasons:
1) Clearly the dispute was over the form and not the substance of payment.
2) United States Notes are NOT Federal Reserve Notes. The notes in question here (circa 1878) were redeemable in gold coin via a Treasury “bank” in New York. FRNs didn’t come into being until after 1913. Today’s FRNs are not even notes, per the UCC!!! You’re comparing apples and stones.
3) The first round of legal tender cases were struck down by the Supreme(s) until it was pointed out that the military necessity of enforcing these notes as legal tender. Military necessity, in the minds of the Supreme(s) over rules the Constitution. The only reason FRNs are enforceable today is due to the ongoing state of emergency declared and reaffirmed periodically.
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