Indeed, under the Coinage Act of 1792, a bimetallic standard was made the law of the land, and, over the next century or so, only bank notes redeemable in gold or silver on demand passed as lawful money
(receivable for customs duties and taxes).
The nonnational banks were able to expand credit from both the increase in national bank notes made possible in 1870 and the lawful money
reserves that came from the national banking system As explained earlier, the national banking system allowed banks to hold a large portion of their reserves in interbank deposits, which made it possible for them to decrease their lawful money
reserves As time progressed and the national banking system matured, many of these lawful money
reserves found their way into the nonnational banking system (which had lower reserve requirements on average) and caused an increase in credit expansion that impacted both [M.
The bill's most recent revision, issued January 23, allows people to issue any instrument of value that is "redeemable for lawful money
of the United States or that has value based on the value of lawful money
of the United States".
Even the statute that authorizes the emission of FRNs requires that "They shall be redeemed in lawful money
on demand at the Treasury Department .
Civil rights action for violation of rights in connection with the plaintiff's prosecution for passing "Liberty dollar coins" as lawful money