LoveIsTruth wrote:But does it forbid private currencies? No.
LoveIsTruth wrote:"Thereof" means the value of money it coins. Learn to read.
Jason wrote:"money" as in all money....and of foreign Coin....as in not local coin which was already covered....speaking of reading...
It does not say "all money." It would be preposterous to suppose that. Private currencies existed in US up to 1913.
Whether or not they chose to regulate it....is a whole different affair than whether they had that power as established by the Constitution....
In the United States, the Free Banking Era lasted between 1837 and 1866, when almost anyone could issue paper money. While there are more restrictions today than in this era, it is still legal to create your own currencies. States, municipalities, private banks, railroad and construction companies, stores, restaurants, churches and individuals printed an estimated 8,000 different monies by 1860 and can still do so today (such as Bitcoin). If an issuer went bankrupt, closed, left town, or otherwise went out of business the note would be worthless. Such organizations earned the nickname of "wildcat banks" for a reputation of unreliability; they were often situated in remote, unpopulated locales said to be inhabited more by wildcats than by people. Yet according to Lawrence H. White's article in The Freeman, "it turns out that 'wildcat' banking is largely a myth. Although stories about crooked banking practices are entertaining—and for that reason have been repeated endlessly by textbooks—modern economic historians have found that there were in fact very few banks that fit any reasonable definition of wildcat bank". The National Bank Act of 1863 ended the "wildcat bank" period.
In 2007, Angel Cruz, founder of The United Cities Corporation (TUC) in one of the dramatic abuses of the use of private currencies, announced he was establishing an alternative "asset based" currency named "United States Private Dollars". Cruz claimed his "United States Private Dollars" were "backed by the total net worth of the assets of its members" and had printed $6,127,379,895 worth of the private currency. According to a press release, these assets were $357,170,993,418. The currency featured the slogan "In Jehovah We Trust".
Several of Cruz's employees stated that they had been promised a 30-year contract, a new car, health insurance and payment of their debts. The workers received compensation in the form of checks from United Cities. Those checks were rejected as fraudulent by local banks after the employees deposited them because they lacked standard routing numbers.
The U.S. Treasury Department's Office of the Comptroller of the Currency issued an alert warning banks that United Cities' checks were "valueless instruments" and should not be cashed.
...by the way...what's a personal check? still exist?