Rensselaer Semi-Weekly Republican, Volume 41, Number 92, Rensselaer, Jasper County, 6 August 1909 — What Is Legal Tender? [ARTICLE]

What Is Legal Tender?

“I venture to say that not one banker in a hundred and not a single member of the Senate or House can te'l you accurately what parts ot the United States currency are legal tender and what are not legal tender,” was the surprising statement of a treasury official. “Learned senators, senators who are now devising a new currency cystem would have to reso-t to the laws in order to find out just exactly what is meant by this term. “A great many people know that the definition of legal tender is money of a character which by law a debtor may require his creditor to receive in payment in the absence of a special agreement. But when it comes to stating just what money is legal tender you will find the banker all at sea. “Gold certificates are not a legal tender, but are receivable for customs, taxes and all public debts. Silver certificates are not a legal tender. Neither are national bank notes. They are receivable, however, in payment of taxes, excises, public lands and all other dues to the United States, except duties on imports. Trade dollars and fractional currency are not legal tender.' Fractional currency is receivable for postage and revenue stamps, and also in payment of any dues to the United States less than $5, except duties on imports. Foreign gold and silver coins are not legal tender. “The following are legal tender, in all that the term means: Gold coins of the United States, standard silver dollars, subsidiary silver coins, minor coins ot copper, bronze or copper-nickel, up to 25 cents; United States notes or greenbacks, demand treasury notes, treasury notes of 1890. Columbian halfdollars and Columbian quarters. Subsidiary silver coin, including Columbian half-dollars and quarters, are legal tender up to $lO." —Washington Letter.