What does the Constitution say about legal tender?

What does the Constitution say about legal tender?

Article I, Section 10 of the Constitution explicitly forbids the states from issuing “bills of credit” (promissory notes) or making anything but gold and silver coin legal “tender”.

What makes a federal law constitutional?

The Supremacy Clause of the Constitution of the United States (Article VI, Clause 2), establishes that the Constitution, federal laws made pursuant to it, and treaties made under its authority, constitute the “supreme Law of the Land”, and thus take priority over any conflicting state laws.

Is the US dollar legal tender?

5103, entitled “Legal tender,” which states: “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues.”

What was the purpose of the legal tender Act of 1862?

With the Legal Tender Act of 1862 Congress revolutionized the U.S. monetary system by making paper notes legal tender and creating a national currency for the first time.

What is the difference between legal tender and legal currency?

Fiat money has no intrinsic value, while legal tender is any currency declared legal by a government. Governments can issue fiat currency and make it legal tender by setting it as the standard for debt repayment.

What is an example of legal tender?

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes and dues. For example, a bus line may prohibit payment of fares in cents or dollar bills.

Can states ignore federal law?

Thus, the federal courts have held that under the Constitution, federal law is controlling over state law, and the final power to determine whether federal laws are unconstitutional has been delegated to the federal courts. The courts therefore have held that the states do not have the power to nullify federal law.

What is Article 1 Section 9 of the Constitution about?

Article I, Section 9 specifically prohibits Congress from legislating in certain areas. In the first clause, the Constitution bars Congress from banning the importation of slaves before 1808. In the second and third clauses, the Constitution specifically guarantees rights to those accused of crimes.