Originally Posted by GoSlash27
Actually, the Federal government *doesn't* have the power (never a right) to print money. It has the power to coin money and regulate it's value. Crucial difference in the wording.
A dollar bill is merely a bill of credit; something expressly forbidden to the States due to the problems it causes (which we're seeing today).
Coining money means literally that; stamping and regulating coins. "Money" has intrinsic value, whereas a bill is merely a piece of paper.
Scope the antifederalist papers #44 to see the concern
And the Federalist response #44
As you can see, both sides were agreed on this point.
Ok, I get that part of it, but when they created the Federal Reserve and started buying paper money from it...didn't they basically hand over the right to regulate the value of it as well?
Again, all I know is, real debt in this country didn't start until the Federal Reserve and the IRS were created, and that most of our tax money is going towards paying back interest to the Reserve.
Also, I have to ask after reading that again...it seems to be stating that the states do not have the power to create their own currency, I don't see anything about Congress not being able to supply it's own paper bills. i.e. "For though no state can emit bills of credit, or pass any law impairing the obligation of contracts, yet the Congress themselves are under no constitutional restraints on these points." Maybe I'm misunderstanding the wording here, but it seems to say that Congress has the power to emit bills of credit, and I'm not sure I understand why the Federal Reserve would be needed to do that for them.