Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1907-08-29
LEGAL TENDER LIMITED
Only Four Of Our Ten Glasses of
Money Acceptable for all Debts.
Gold Only IL Unlimited--JIttIc I'm
dcrstood restrictions Attaching
Even TO Three Glasses Of
Legal Tender.

Secretary Cortelyou's reported intention
of making payments by check against
treasury bank deposits is a radical enough
departure from the time -honored ,and rcd
tape-bound treasury fiscal usage TO
focus attention on the whole cumbersome
structure OF our money system.
In the ordinary course of business few
people are made to realize that ont of the
ten different KINDS Of money in circula-
ton In the United States only four species
are acceptable legally for all debts. pub
lie and private. It is generally known
that subsidiary coinage may be refused in
payment for amounts exceeding $40. Spite
cases are frequently cited in the news
papers where disgruntled debtor has
thought 70 get even with his creditor by
fairly cngulflng him in dimes. nicltels,
and pennies. only to have payment re-
fused. 1t is matter of less common
knowledge that the minor coins which
is the official designation nckels and
pennies, are legal tender only to The
amount Of Or cents
As matter of fact. gold coins, stand
ard silver dollars. treasury notes of the
act of July "A. 1890. and United states
notes, are tho only four classes which are
legal tender. and out Of these gold coin
alone =. legal tender without limitation.
Though they may he below "thc standard
weight and limit of tolerance prescribed
by law" they remain legal tender in pro-
portion to weight. Standard silver dollars
are legal tender without regard to
amount. except where otherwise express
~ stipulated in the contract" and treas
ury notes also may be refused acce pta nee
under similar provision. United States
notes the government itself refuses to ac-
copt In payment of duties on IMPORTS and
interest on the public debt: though they
must be accepted without limit in pay
ment Of all other public and private in
debtedness
Gold certificates and silver certificates
though representing actual ct'n on de-
post in the United States treasury. are
not legal tender. yet they are receivable
for all public dues National hanknotes
are also accepted from the legal tender
class but are receivable for public dues.
except duties on Imports Though the
government refuses to accept national
bauknoteS itseIfNOn parity with legal
tender, it abrogates to itself the privilege
VI ptNIHS lIl'll out Tor All S1larleS ana
other debts and demands owing by the
United states by individuals, corporations
and associations within the United States,
except interest on the public debt and IN
redemption of the nationa, currency"
All national banks are required by law
to receive the notes Of other national
banks at par but an individual or cor
poratiOn may not only refuse 70 receive
national banknotes. hut may limit accept
auce Of United States money generally to
the two classes which are unlimited legal
tender
This limitation attaching TO most of our
currency was emphasized recently in the
settlement of a real estate tran sn ction in
which the seller was unwlllingly held to
his bargain. The agents of the buyer. ex-
pecting the seller to take advanta ge Of
every possible legal quibble over the pay
ment thought they We're absolutely COM
plying with tho requirements In tendern e
gold certificates. which upon their face
specifically declared that there had been
/ deposited IN the treasury a corresponding
sum In yellow metal, repayabIe to the
bearer on demand. They were somewhat
nouplused when the crisp yellow bills
were refused. on the other hand the
sellers lawyers had not fully Informed
themselves on the complications of the
legal tender statutes and did not realize
that in refusing the small. neat bundle Of
gold certificates they were propa ring the
way for retaliation in the shape Of sack
of silver dollars which required the. SER
vices of porter and a hired cab to take
to the bank
| -,11
the curb. a broker -ho was compelled Ia
| accept delivery of some stock he did not
want got square by making his settle
ment In a sack OF dimes and quarters.
which made haCk-load for a husky nor
ter. Neither he nor the seller knew that
subsidiary silver may not legally be ten
! dered for one payment In excess of 80
and the seller of the stock moekly accept
ed the sack of cumbersome small coin.
The volume of United States notes in
circulation has been considerable reduced
| In recent years and OF the treasury notes
of 1900 there are only about &C. 600 900 out
standing. These are chiefly held by the
| bank. reserve. In the money panics
of Cleveland's administration. when there
were runs upon the treasury for gold
the notes of these two classes outstand-
ing We're In larger volume and might have
been presented to tho treasury in eX-
| change for gold in sufficient volume Ia
cause real emharra ssment They could
not now. however, be gathered in sufii-
Client quantity to seriously reduce the
stocks of gold In the strong boxes Of the
government.
The redemption OF GOLD certificates
would automatically adjust itself. Each
certificate ont has its equivalent in yellow
coin In the vaults, and when the stock OF
| the metal had been reduced below 500
100000 no more certificates would be issued
against IT, The exchange OF gold for sill
Yer certificates or silver coin IS optional
with the treasury officials and in the
event of a crisis the payment of gold for
| them could be refused
| A CLEAR, EVEN COI.ORED COM
PLENION