Evening star., 1895-02-04
MANY KINDS OF MONEY
Those That Are a Legal Tender and Those
That Are Not,
Some Facts About the National Cur
rency Which Are of Interest at
the Present Time.

Although people talk glibly and wisely
about the national currency, the vast ma
jority of them have but superficial knowl
edge Of the functions Of the various issues
In response to several communications re-
ceived at this office for information on the
subject a few facts are briefly given thai
may afford clearer understanding Of the
present discussion of the national finances
Legal Tenders.
The official definition of the term "lega
tenders" taken from Bouvier's Law Die
tionary, is money of character which by
law debtor may require his creditor to re
ceive in payment, in the absence of any
agreement in the contract or obligation IT.
SELF" In government transactions the golC
coins Of the United States are legal tender
in all payments, at their nominal value
when not below the standard weight ano
limit of tolerance provided by law for the
single piece, and when reduced In Welgn'
below such standard and tolerance are
legal tender at valuation in proportion te
their actual weight.
Standard silver dollars are legal tender
at their nominal value for all debts ano
dues, public and private, except where
otherwise expressly stipulated in the con-
tract. The silver coins of the United States
of smaller denominations than one dollar
are legal tender in all sums not exceeding
ten dollars in full payment of all dues, pub
lie and private.
Minor coins whether of copper, bronze or
copper nickel, are a legal tender at their
nom:nal value for any amount not exceed
ing rs cents IN any one payment
United States notes, otherwise known as
legal tender notes. and "greenbacks,' are
a legal tender in payment of all debts pub
lie or private, within the United States, eX-
cept duties on imports and interest on the
public debt.
Treas sury notes, issued in payment of
ha n h1IIion under the Sher-
man act of 1880, are legal tender in pay
ment of all debts, public or private, except
where otherwise expressly stipulated in
the contract, and are receivable for GUS
toms, taxes and all public dues.
Columbian half dollars are legal tender
to the same extent as subsidiary silver
coin-that is $40 in any one payment. Co.
lumbian quarters are also a legal tender
to the same extent IS subsidiary silver coin.
Not Legal Tenders.
Gold certificates are not a legal tender.
They are, however. receivable for customs.
taxes and all public dues. Silver certifi-
Gates have precisely the same standing as
gold certificates.
National bank notes are net a legal ten
der. They are, however, receivable at par
in all parts of the United States in pay
ment OF taxes, excuses, public lands and all
other dues to the United States except
duties on imports; and also for all salaries
anu OlUtT uSDlS anu ueIndnUS OW1ES Dy lne
United States to individuals, corporations
and associations within the United States,
except interest on the public debt and in
redemption of the national currency.
Trade dollars are not legal tender. By
the act of February II, 1873, they were a
legal tender at their nominal value for any
amount not exceeding five dollars in any
one payment. but under date of July %
1876. it was enacted that they should not
thereafter be q legal tender.
By the act of March g. 1863 fractional
currency was receivable for postage and
revenue stamps. and also in payment of
any dues to the United States, less than
five dollars. except duties on imports; but
they are no longer a legal tender to any
extent whatever.
The Treasury Department has also de-
cided that for eign gold and silver coins are
not legal tender in payment of debts.
The question has been raised and disputed
as to whether what was called the "conti-
mental currency" issued during the war of
the revolution by the old government, was
or was not a legal tender. The facts ap-
pear to be that while the Continental Con-
greSs did not by any ordinance attempt to
give it that character, they asked the
states to do so, and all seem to have COM
piled, except Rhode Island. The Continen-
tai Congress only enacted that the man who
refused to take the money should be an
enemy of his country This currency, as
now classified at the Treasury Department,
is not a legal tender.
By law, treasury notes are redeemable in
coin. The kind of coin employed is OPP
ticnal with the Secretary of the Treasury.
Secretary Carlisle has directed their Ie-
demption in gold whenever that coin is
demanded. In case the holder has no
preference, he will receive silver in eX-
change, but such cases are extremely rare.
United States notes are also redeemable in
gold.
There is no standard in the matter of
government bonds. Each loan stands on its
own bottom. During the war legal tender
notes were accepted in payment for bonds,
been negotiated in gold it's equivalent,
gold certificates. The recent issues Of bonds
were for the purpose of replenishing the
dwindling gold reserve in order to enable
the government to maintain the parity Of
the two metallic standards of value. Con-
sequently no other currency was receivable
in payment of the bonds. Bonds are re-
deemable in coin, either gold or silver, at
the option of the government.