What Is Money?
"Money is the common denominator of all economic transactions. It is that commodity which serves as a medium of exchange, is universally acceptable to all participants in an exchange economy as payment for their goods or services, and can, therefore, be used as a standard of market value and as a store of value, i.e., as a means of saving."-Alan Greenspan "Gold and Economic Freedom"
The Silver & Gold Dollar
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Dollars, Half dollars, Quarter dollars, Dimes, & Half dimes were made with silver. Eagles, Half eagles, and Quarter eagles were made with gold. And pennies were made with copper. So the "true value" of a dollar was actually measured in silver, gold, and copper according to the Coinage Act and the Constitution. Take a look at the illustration below...
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Silver Coins As Money
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Gold Coins As Money
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The founding fathers of this country knew too well that only gold and silver was the best form of money for payment of DEBTS, not paper money or credit. This is why they gave Congress the power to create a monetary system with precious metals: gold, silver, and copper, as money, to distribute to the people. For the wealth should be in the hands of its citizens and not just a few.
Notes, Certificates & Fiat Currency
In order for paper money or currency to have value, it must be a legally binding document or contract. Therefore the wording on the bill is very important. Certificates & Demand Notes was not money itself but the bearer/owner of them could redeemed them at the bank for the real money. In other words, these were binding documents, a promise to pay, ....so what is the promise you receive? Silver or Gold according to the demand note or certificate.
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Silver & Gold Certificates and Demand Notes
A certificate is a document that displays ownership of "a thing".
A note is a debt or IOU.
Words on a demand note for gold:
THIS NOTE IS RECEIVABLE BY ALL NATIONAL BANKS AND FEDERAL RESERVE BANKS FOR TAXES AND PUBLIC DUES. IT IS REDEEMABLE IN GOLD ON DEMAND AT THE TREASURY DEPARTMENT IN WASHINGTON, OR IN GOLD COIN OR LAWFUL MONEY AT ANY FEDERAL RESERVE BANK.
Words on the silver & gold certificate states:
THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE TREASURY OF THE UNITED STATES OF AMERICA.
This certificate is legal tender for all debts public and private
Whatever the denomination on the certificate or note, the treasury would pay out in silver/gold to the person who redeems the bill.
A certificate is a document that displays ownership of "a thing".
A note is a debt or IOU.
Words on a demand note for gold:
THIS NOTE IS RECEIVABLE BY ALL NATIONAL BANKS AND FEDERAL RESERVE BANKS FOR TAXES AND PUBLIC DUES. IT IS REDEEMABLE IN GOLD ON DEMAND AT THE TREASURY DEPARTMENT IN WASHINGTON, OR IN GOLD COIN OR LAWFUL MONEY AT ANY FEDERAL RESERVE BANK.
Words on the silver & gold certificate states:
THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE TREASURY OF THE UNITED STATES OF AMERICA.
This certificate is legal tender for all debts public and private
Whatever the denomination on the certificate or note, the treasury would pay out in silver/gold to the person who redeems the bill.
What is Fiat Currency?
This is fiat currency:
So fiat currency is a faith base currency that the public believes that has value based on the government. So A Federal Reserve Note Is...
A promissory note that is a debt or IOU used in the form of paper currency. Words on the Federal Reserve Note states: THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE This note is not backed by anything, but a promise and has no "tangible" value. When it is exchanged for good or services, the person can no longer redeem it for silver or gold. |
Connect the dots to
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No More Silver & Gold
It clearly states in the Constitution & the Coinage Act what our money is supposed to be. But take a look on how silver and gold was removed from our money....
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1913: The Federal Reserve is created and they started to produced notes as money.
1932 &33: President Roosevelt demonetize gold. This was to stimulate the economy & The Federal Reserve started to create notes that was not redeemable in gold/silver. 1957: The Federal Reserve stop creating silver certificates. 1965: Congress passed the Coinage Act which eliminated silver from all dimes, quarters, & half-dollars and replaced it with copper and nickel. The reason for this was the rising price of silver-which led to coin shortages. 1968: You could no longer redeemed the silver certificates to get silver from the US Bank. 1971: President Nixon took us of the gold standard completely and created fiat currency worldwide. |
Paper Money Creates Inflation
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Inflation is a thief that steals wealth from individuals, that gets its power from a corrupt monetary system. As the value of fiat currency drops, it cost the public more currency (paper dollars) to purchase the same item. This is how it can wipe the savings of people over time and make the retirees go back to work instead of enjoying the rest of their time.
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Dishonest Money Tends To Do This...
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Honest Money Tends To This...
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Has the power to protect the owner purchasing power and wealth. These precious metals have three qualities that money should have: medium of exchange, store of value, and recognize around the globe.
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Gold and Economic Freedom
by Alan Greenspan
[written in 1966]
This article originally appeared in a newsletter: The Objectivist published in 1966 and was reprinted in Ayn Rand's Capitalism: The Unknown Ideal
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