The DOLLAR is a unit of measurement, same as a pound, ounce, inch, foot, yard, acre, mile, etc. Units of measure do not change only the number of units or the value of the units of measure change.The DOLLAR is a form of measurement, not money. A Dollar is 90% pure silver (412.5 grains in weight) or 90% pure gold (25.8 grains). A DOLLAR of silver weighs the same as ten silver dimes, or four silver quarters, or two silver halves.
THE TERM DOLLAR HAS BEEN DEFINED SEVERAL WAYS:
“A silver coin” Webster’s Encyclopedic Dictionary, 1980.
“A weight of gold or silver” Encyclopedia Britannica, 1962.
“412.5 grains of silver” World Dictionary, 1959.
The Century Dictionary, Published 1914 (with over 8,000 pages of definitions) defines the term DOLLAR as “The monetary unit or standard of value of the United States and Canada. By the term Dollar in the United States is intended the coined dollar of the United States, a certain quantity in weight and fineness of gold or silver…”Silver Certificates state the following: “This certifies that there is on deposit in the Treasury of the United States of America (denomination) Dollar(s) in silver payable to the bearer on demand.”
United States Notes states the following:
“The United States of America will pay to the bearer on demand (denomination) Dollar(s).”
A NOTE cannot be a DOLLAR, it can only be a promise to pay.
The United States Constitution only permits coined money to be used to pay debts.
Article 1, Section 10, paragraph 1, The United States Constitution:
No State shall make any thing but gold and silver coin a tender in payment of debts….
Coinage Act of April 2, 1792:
The money of account of the United States shall expressed in dollars or units…all accounts in public and all proceedings in the courts of the United States shall kept and had in conformity to this regulation.
Paper receipts for gold and silver are no longer issued by the United States.
Besides the denominations of United States notes, from $1 to $10,000, that were issued before 1929, several other types of United States paper receipts no longer issued have circulated within the past 75 years. National Bank notes were issued by national banks from 1863 to 1929. Gold certificates, authorized in 1865 and issued by the Treasury Department in exchange for gold coin and bullion, circulated until 1933. Silver certificates, authorized in 1878 and issued in exchange for dollars of silver, accounted for nearly all of the $1 notes in circulation until November 1963, when the first $1 Federal Reserve notes without the “Will Pay To The Bearer On Demand” notation were issued as money.
Which one is the real Money?
The Federal Reserve Note without the “Will Pay To The Bearer On Demand” removed was first issued in November 1963. It claims to be Five Dollars.
A Note is a promise to pay. It cannot be money.The United States Note that was issued before November 1963 was redeemable for Five Dollars. If it was redeemable for Five Dollars, it could not be the Five Dollars.
Real Money is for example a 1913 Dollar of Silver (412.5 grains of silver in weight)AKA the Morgan Dollar of Silver.
The paper money we use every day are Federal Reserve Notes (FRN), not Dollars as we commonly call them. The FRNs are no longer receipts for “Dollars” or “Dollars of Silver”. If a FRN is not redeemable for “Dollars” what is it worth? It is worth what you believe it is worth, since you can still use it to buy things, it has a value. But what is it costing you to use FRNs that are not backed by something tangible (like gold or silver) to control its worth? Since there is nothing controlling the actual number of FRNs printed, an unlimited amount can be produced. As in any market, the value of anything goes down if there is more of the item available to be consumed.
There is a way to place a value on a FRN by comparing it to the value of a Dollar of Silver.
As of Oct. 18, 2008 the NYMEX closing price of silver was at 9.32 FRNs per troy ounce of silver. Each Morgan Dollar contains 0.7735 troy ounces of silver. This translates to a value of 7.21 FRNs for each Morgan Dollar. Transversely, the value of a FRN is about 13.7 cents.
This is why things cost so much. The FRNs we call Dollars only have the buying power of 13.7 cents.
Today’s FEDERAL RESERVE* (Private Corporation with Federal Controls) NOTES are not redeemable for silver or gold. They survive by our faith only. We should always have faith, but to own a dollar of silver it takes 7.21 FEDERAL RESERVE NOTES.