Can states in the US issue their own money ?

[rupol2000]

One being 100% controlled by the central gubmint, the other being a separate -but parallel- entity.

So the US has a banking system independent of the feds?

 

[Oddball]

So the US has a banking system independent of the feds?

The Fed has to be independent, per Article 1, Sections 8 & 10.....Only coin is to be the proper lawful money.

The Fed doesn't produce "coin", it only belches out fiat commercial script.

 

[rupol2000]

Issue as in loan monies or create monies?

In fact, in finance, no one prints money without debt, there is always a loan agreement, which is an obligation of the debtor and it is a cover for the printed money. It is impossible to print money and buy Coca-Cola with this money. You can only lend non-existent money, and then ask the debtor to buy you Coca-Cola.

 

[rupol2000]

The Fed has to be independent, per Article 1, Sections 8 & 10.....Only coin is to be the proper lawful money.

The Fed doesn't produce "coin", it only belches out fiat commercial script.

It is not clear then why it is called federal.

Is it independent in the same sense that the branches of government, such as the executive, the legislature, and the judiciary, are independent? But they're still feds.

The Federal Reserve issues money, but it goes mostly to treasury transaction

 

[shockedcanadian]

This is why you have union of states. In Canada a confederation of provinces. All sharing one common goal in theory backed by a unified currency.

 

[postman]

OK. But there is a hole in the law.
It says nothing about the monopoly of the feds.
This means that private banks in the states can issue money in the interests of the states and under the protection of the state governments.

Actually any agent or entity working for the state like that, becomes the state. And as explained before, the state is prohibited by the 10th amendment from coining money.

A private bank can coin money, but such currency is "not" legal tender. But would be like bitcoin, or other cryptocurrency, whose value has no underlying government support.

 

[lg325]

I am not sure if this qualifies but back in the 1970s some agricultural communities issued ''Farm Dollars'' It was backed by the farm crops from participating farmers. I am not sure if it is still active.

 

[rupol2000]

This is why you have union of states. In Canada a confederation of provinces. All sharing one common goal in theory backed by a unified currency.

In fact, the distribution of money is the distribution of property rights. A monopoly on the issuance of money hinders freedom. This allows the monopoly to decide who gets rights and who doesn't.

 

[DudleySmith]

State and private banks issued their own currencies right up to the 1900's. Retail Businesses used to have to buy a catalog every year that had pictures of the various bills and denominations to help determine which ones were legit. Companies paid employees in script, usable only at company stores, to keep them unable to save up cash and quit. Lincoln had greenbaxks printed up to pay soldiers and allow businesses to pay their employees in greenbacks instead of hard currency. This paper money fell as low as 33 gold cents on the dollar.

National Bank Note - Wikipedia

en.wikipedia.org

History of United States Currency | MyCreditUnion.gov

History of United States Currency from the 1700s to Today

mycreditunion.gov

... and other sources. Of course this just made counterfeiting a big business.

During the period from 1863 to 1929, the Government again permitted thousands of banks to issue their own notes under the National Banks Acts of 1863 and 1864. These were called "national bank notes," but unlike the earlier "state bank notes," they were produced on paper authorized by the U.S. government and carried the same basic design.


In 1913, Congress passed the Federal Reserve Act, establishing this nation's Federal Reserve System. This Act authorized the Federal Reserve Banks to issue Federal Reserve Bank notes. In 1914, the Federal Reserve Banks began issuing Federal Reserve notes - the only currency still being manufactured today by the Bureau of Engraving and Printing.

History of United States Currency | MyCreditUnion.gov

History of United States Currency from the 1700s to Today

mycreditunion.gov

 

[postman]

I am not sure if this qualifies but back in the 1970s some agricultural communities issued ''Farm Dollars'' It was backed by the farm crops from participating farmers. I am not sure if it is still active.

No different than when grocery stores issued "plaid stamps" redeemable for merchandise.

 

[rupol2000]

Actually any agent or entity working for the state like that, becomes the state. And as explained before, the state is prohibited by the 10th amendment from coining money.

But the Federal Reserve is a de facto part of the state.

 

[postman]

State and private banks issued their own currencies right up to the 1900's. Retail Businesses used to have to buy a catalog every year that had pictures of the various bills and denominations to help determine which ones were legit. Caompnaies paid employees in script, usable only at company stores, to keep them unable to save up cash and quit. Lincoln had greenbaxks printed up to pay soldiersi n and allow businesses to pay their employees in greenbacks instead of hard currency. This paper money fell as low as 33 gold cents on the dollar.

Officially "coin" is redeemable for all debts public and private.

Privately minted "coin" was only good for the goods, services or legal tender, the producer of the coin would determine.

 

[rupol2000]

State and private banks issued their own currencies right up to the 1900's. Retail Businesses used to have to buy a catalog every year that had pictures of the various bills and denominations to help determine which ones were legit. Caompnaies paid employees in script, usable only at company stores, to keep them unable to save up cash and quit. Lincoln had greenbaxks printed up to pay soldiers n and allow businesses to pay their employees in greenbacks instead of hard currency. This paper money fell as low as 33 gold cents on the dollar.

National Bank Note - Wikipedia

en.wikipedia.org

History of United States Currency | MyCreditUnion.gov

History of United States Currency from the 1700s to Today

mycreditunion.gov

... and other sources. Of course this just made counterfieting a big business.

Problems usually arose due to monopoly collusion and banker fraud. If it was removed, it would be all right. It was just necessary to kill the bankers who were engaged in fraud, and prohibit over-crediting in other banks. Fractional reserve should have been banned

 

[postman]

But the Federal Reserve is a de facto part of the state.

When I said state, it referred to one of 50 such entities. Not the generic government "state", such as the government of a country.

 

[DudleySmith]

I am not sure if this qualifies but back in the 1970s some agricultural communities issued ''Farm Dollars'' It was backed by the farm crops from participating farmers. I am not sure if it is still active.

That was a barter system, and not really 'currency', kind of like green stamps and coupons.

 

[postman]

That was a barter system, and not really 'currency', kind of like green stamps and coupons.

Barter is an act of trading goods or services between two or more parties without the use of money —or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.

Anything that acts as a barter intermediary, is a form of currency. Whether legal tender, or non-legal tender.

Bills of exchange, bank drafts, postal orders, and cheques are examples of non-legal tender money. These types of money are usually accepted but legally there is no obligation to accept them. Whether it is accepted or not is the choice of lender, seller or creditor.

 

[rupol2000]

Barter is an act of trading goods or services between two or more parties without the use of money —or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.

Anything that acts as a barter intermediary, is a form of currency. Whether legal tender, or non-legal tender.

Bills of exchange, bank drafts, postal orders, and cheques are examples of non-legal tender money. These types of money are usually accepted but legally there is no obligation to accept them. Whether it is accepted or not is the choice of lender, seller or creditor.

And in the United States is not prohibited the circulation of surrogate money?

 

[DudleySmith]

Officially "coin" is redeemable for all debts public and private.

Privately minted "coin" was only good for the goods, services or legal tender, the producer of the coin would determine.

One of the problems with researching economic history and prices in the U.S. in the 18th and 19th centuries is primary sources don't always specify whether the prices are in gold, silver, or paper money. Many of the colonies had their own 'Pounds', each with a different value against the English Pound; Massachusetts Pounds were not equal to Pennsylvania Pounds or New York Pounds, etc.

Green backs were simply another way for employers to screw over employees, is all. That is why govt. bonds were always paid in gold dollars, as were its contractors during the Civil War, who then paid their peasants in greenbacks, worth a lot less than its face value in gold cents and dollars.

 

[DudleySmith]

Barter is an act of trading goods or services between two or more parties without the use of money —or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.

Anything that acts as a barter intermediary, is a form of currency. Whether legal tender, or non-legal tender.

Bills of exchange, bank drafts, postal orders, and cheques are examples of non-legal tender money. These types of money are usually accepted but legally there is no obligation to accept them. Whether it is accepted or not is the choice of lender, seller or creditor.

Which makes not legal tender; they were just coupons and stamps. You could sell green stamp books for cash as well, if you decided you didn't want anything on the shelves at the green stamp store. They are just non-cash barter rebates.

 

[rupol2000]

One of the problems with researching economic history and prices in the U.S. in the 18th and 19th centuries is primary sources don't always specify whether the prices are in gold, silver, or paper money. Many of the colonies had their own 'Pounds', each with a different value against the English Pound; Massachusetts Pounds were not equal to Pennsylvania Pounds or New York Pounds, etc.

Green backs were simply another way for employers to screw over employees, is all. That is why govt. bonds were always paid in gold dollars, as were its contractors during the Civil War, who then paid their peasants in greenbacks, worth a lot less than its face value in gold cents and dollars.

The problems of swindlers are solved by the execution of swindlers. It's no better for the feds, their money is generally not backed by anything other than debt.