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The statement does not refer to how states may pay their debts - it refers to their power to issue currencies. "...make any Thing but gold and silver Coin a Te
by hashmap 13y ago
The statement does not refer to how states may pay their debts - it refers to their power to issue currencies.
"...make any Thing but gold and silver Coin a Tender in Payment of Debts... " means states cannot issue their own currencies as legal tender. They can only make gold or silver legal tenders for debts. The federal government can make paper dollars a legal tender, and the states can pay their debts in that.
http://en.wikipedia.org/wiki/Contract_Clause#Legal_Tender http://en.wikipedia.org/wiki/Contract_Clause#Legal_Tender
- logfromblammo 13y agoDenying a power to the states is not the same as granting it to the federation. The federal government was never authorized to declare anything a legal tender. It was authorized to manufacture coins and say what they are worth. It would be nice to think that the supremes would strike down legal tender laws for that reason, but as they are paid in paper, I don't think it likely in this millennium.