"Lawful Money"?
Got $20 cashback at the market yesterday, and when the clerk handed me the bill, I took one look at it and said "Whoa! You got any more like that?" The clerk said no, and added that he was glad I took it. Two previous customers had refused the bill because they didn't think it was real. I said it's real, alright, it's just real old. 71 years old, to be precise. Check it out! Ever seen a bill like this before?
click image to enlarge
The Series of 1934 is actually the first-ever series of Federal Reserve Notes - what all our currency is today. It's the first paper money ever issued by our government that wasn't backed by an equal value of some precious metal. (Am I right about this, tilton? Or were United States Notes also not backed by gold or silver?) (Correction: the first Federal Reserve Notes were actually issued in 1918.) Anyway, note this pronouncement on the front of the bill:
This note is legal tender for all debts,
public and private, and is redeemable in
lawful money at the United States Treasury,
or at any Federal Reserve Bank.
"Lawful money"? That's right - this note is merely "legal tender" - meaning you are required by law to accept this piece of paper as payment for all goods and services even if you, personally, believe that it has no intrinsic value whatsoever. Because like it or not, folks, our money today doesn't have any intrinsic value. It's all one big confidence game that our government has been playing with us for the better part of a century. But now, of course, our Federal Reserve Notes don't mention "lawful money" anymore. It just says it's legal tender, and that's enough of a magic wand act to make all of us think that our money really has some value beyond its mere fancy paper and ink.
One other interesting thing about this bill (besides the lime green ink). Notice anything missing on the back? How about "In God We Trust"? It ain't there, is it?
click image to enlarge
Anyway, I just wonder where this bill has been before it surfaced at the market. It sure hasn't been in circulation for the whole last 71 years! When I see old money like this, it makes me think that someone has been raiding great-grandma's piggy bank. And likely for less-than-honest reasons...
click image to enlarge
The Series of 1934 is actually the first-ever series of Federal Reserve Notes - what all our currency is today. It's the first paper money ever issued by our government that wasn't backed by an equal value of some precious metal. (Am I right about this, tilton? Or were United States Notes also not backed by gold or silver?) (Correction: the first Federal Reserve Notes were actually issued in 1918.) Anyway, note this pronouncement on the front of the bill:
This note is legal tender for all debts,
public and private, and is redeemable in
lawful money at the United States Treasury,
or at any Federal Reserve Bank.
"Lawful money"? That's right - this note is merely "legal tender" - meaning you are required by law to accept this piece of paper as payment for all goods and services even if you, personally, believe that it has no intrinsic value whatsoever. Because like it or not, folks, our money today doesn't have any intrinsic value. It's all one big confidence game that our government has been playing with us for the better part of a century. But now, of course, our Federal Reserve Notes don't mention "lawful money" anymore. It just says it's legal tender, and that's enough of a magic wand act to make all of us think that our money really has some value beyond its mere fancy paper and ink.
One other interesting thing about this bill (besides the lime green ink). Notice anything missing on the back? How about "In God We Trust"? It ain't there, is it?
click image to enlarge
Anyway, I just wonder where this bill has been before it surfaced at the market. It sure hasn't been in circulation for the whole last 71 years! When I see old money like this, it makes me think that someone has been raiding great-grandma's piggy bank. And likely for less-than-honest reasons...