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The Fed has to be independent, per Article 1, Sections 8 & 10.....Only coin is to be the proper lawful money.So the US has a banking system independent of the feds?
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.Issue as in loan monies or create monies?
It is not clear then why it is called federal.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.
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.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.
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.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.
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.
But the Federal Reserve is a de facto part of the state.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.
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.
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 bannedState 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 Todaymycreditunion.gov
... and other sources. Of course this just made counterfieting a big business.
When I said state, it referred to one of 50 such entities. Not the generic government "state", such as the government of a country.But the Federal Reserve is a de facto part of the state.
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.
And in the United States is not prohibited the circulation of surrogate money?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.
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.
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.
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.