scholarly journals Non-Legal-Tender Paper Money: The Structure and Performance of Maryland's Bills of Credit, 1767-1775

2014 ◽  
Author(s):  
Jim Celia ◽  
Farley Grubb
Keyword(s):  
Legal Tender ◽  
Paper Money ◽  
And Performance

The US Constitution and monetary powers: an analysis of the 1787 constitutional convention and the constitutional transformation of the US monetary system

2006 ◽  
Vol 13 (1) ◽  
pp. 43-71 ◽  
Author(s):  
FARLEY GRUBB
Keyword(s):  
Constitutional Convention ◽  
Watershed Transformation ◽  
Founding Fathers ◽  
Legal Tender ◽  
Paper Money ◽  
Monetary System ◽  
The Us ◽  
Us Constitution

The monetary powers embedded in the US Constitution were revolutionary and led to a watershed transformation in the nation's monetary structure. They included determining what monies could be legal tender, who could emit fiat paper money, and who could incorporate banks. How the debate at the 1787 constitutional convention over these powers evolved and led the founding fathers to the specific powers adopted is presented and deconstructed. Why they took this path rather than replicate the successful colonial system and why they codified such powers into supreme law rather than leaving them to legislative debate and enactment are addressed.

“Acting Directly on the People”

2019 ◽  
pp. 142-155
Author(s):  
David S. Schwartz
Keyword(s):  
Civil War ◽  
Supreme Court ◽  
Race Relations ◽  
Legal Tender ◽  
Interstate Commerce ◽  
Paper Money ◽  
Legislative Authority ◽  
The People ◽  
The Supreme Court ◽  
History Of

Post–Civil War nationalism meant a partial but significant reversion to prewar constitutionalism, recognizing federal legislative authority over “every foot of American soil” and implementing the antebellum Whig-nationalist economic agenda, but allowing states to retain, or regain control over race relations. The Supreme Court upheld the constitutionality of internal improvements, but declined to embrace implied commerce powers, suggesting instead (as in Gibbons v. Ogden) that the question involved the definition of interstate commerce as an enumerated power. The Court seemed to want to confine McCulloch v. Maryland to taxation, banking, and currency matters. The Legal Tender Cases, which relied on McCulloch to uphold the federal power to issue paper money, were a watershed in the history of implied powers, and were recognized as such at the time by many commentators. Yet the Supreme Court over the ensuing decade and a half seemed unwilling to follow through on McCulloch’s full implications.

scholarly journals Colonial American Paper Money and the Quantity Theory of Money: An Extension

2018 ◽  
Vol 43 (1) ◽  
pp. 185-207 ◽  
Author(s):  
Farley Grubb
Keyword(s):  
New England ◽  
North American ◽  
Statistical Relationship ◽  
Quantity Theory ◽  
Paper Money ◽  
American Colonies ◽  
Monetary Unit ◽  
And Performance ◽  
British North American

The quantity theory of money is applied to the paper money regimes of seven of the nine British North American colonies south of New England. Individual colonies, and regional groupings of contiguous colonies treated as one monetary unit, are tested. Little to no statistical relationship, and little to no magnitude of influence, between the quantities of paper money in circulation and prices are found. The quantity theory of money does not explain the value and performance of colonial paper monies well. This is a general and widespread result, and not a rare and isolated phenomenon.

scholarly journals Colonial New Jersey Paper Money, 1709–1775: Value Decomposition and Performance

2016 ◽  
Vol 76 (4) ◽  
pp. 1216-1232 ◽  
Author(s):  
Farley Grubb
Keyword(s):  
New Jersey ◽  
Market Value ◽  
Present Value ◽  
Time Discounting ◽  
Paper Money ◽  
And Performance ◽  
Value Decomposition ◽  
Land Bank

I decompose the market value of Colonial New Jersey's paper money into its component parts, namely its real-asset present value and transaction premium. Its market value was predominately determined by its real-asset present value. I also find a small transaction premium that is positively associated with the quantity of paper money in circulation and with the land-bank method of paper money injection. This paper money was not a fiat currency. It traded below face value due to time-discounting not depreciation.

scholarly journals Estonian currency board and economic performance

1998 ◽  
Vol 1 (3) ◽  
pp. 463-482 ◽  
Author(s):  
M. Sõrg
Keyword(s):  
Monetary Policy ◽  
Economic Reform ◽  
Economic Performance ◽  
Central Banks ◽  
Currency Board ◽  
Fixed Rate ◽  
Paper Money ◽  
And Performance ◽  
Foreign Assets

The sole function of an orthodox (or "pure") currency board was to issue paper money fully backed by foreign assets, for which it was exchangeable at a fixed rate. Present-day currency board arrangements, however, are usually coupled with certain instruments of monetary policy too, albeit less extensive than in the case of conventional central banks. This paper sketches the establishment of the Estonian currency board in 1992, and its subsequent impact on the economic reform and performance in Estonia.

The Massachusetts Paper Money of 1690

2009 ◽  
Vol 69 (4) ◽  
pp. 1092-1106 ◽  
Author(s):  
Dror Goldberg
Keyword(s):  
Systematic Study ◽  
Legal Tender ◽  
Political Constraints ◽  
Probability Of Survival ◽  
Paper Money ◽  
The Government

Modern currency originates in the inconvertible, legal tender paper money that Massachusetts devised in 1690. The circumstances that led to its creation are more complex than the typical story of wartime specie shortage. Due to temporary political constraints of that turbulent period, the currency could be neither backed by land nor imposed on anyone, as was then standard. Instead, it had to be disguised from England as a simple, private-seeming IOU. By pleasing both its pay-demanding troops and England, the government maximized its probability of survival subject to the constraints. “Monetary innovation, the development of new forms of money, has not received much systematic study from economic historians.”1

scholarly journals ‘The most difficult financial matter that has ever presented itself’: paper money and the financing of warfare under Louis XIV

2018 ◽  
Vol 25 (1) ◽  
pp. 43-70 ◽  
Author(s):  
Joël Félix
Keyword(s):  
Fiscal Policy ◽  
Recent Literature ◽  
Primary Sources ◽  
Louis Xiv ◽  
Legal Tender ◽  
Paper Money ◽  
Fiat Money ◽  
Finance Minister ◽  
Monetary Regime ◽  
War Effort

Based on an extensive survey of French primary sources and a discussion of the recent literature on fiscal policy in France and Europe during Louis XIV's wars, this article revisits the rationale behind the first experiment with paper money undertaken by finance minister Michel Chamillart, comparing it to other belligerents’ strategies, in particular England's, to adjust their monetary regime to the challenges of funding long wars of attrition. The article shows how concerns about economic activity, coinage and the need to finance the war deficit led to a series of debasements of the French currency, the establishment of a bank in the form of aCaisse des empruntsand the introduction of mint bills, which became legal tender and caused the first experience of fiat money inflation in history. Whereas Chamillart's personal shortcomings have been recently suggested as the cause of Louis XIV's humbling in the War of the Spanish Succession, I argue on the contrary that the introduction of paper money in 1704 was key to the capacity of France to sustain its military effort, but that a succession of military defeats against a more powerful coalition led to inflation. I also argue that the introduction of paper money saved theCaisse des empruntsand its bonds which helped sustain the war effort up until the peace. By situating the use of paper money within the broader question of the exercise of power in the absolute monarchy, this article examines the formation of fiscal policy, paying attention to the ways in which government sought advice from experts. It concludes by calling for further studies on policy- and decision-making under Louis XIV.

scholarly journals Szata graficzna pieniędzy papierowych emitowanych na terenach okupowanych przez wojska niemieckie podczas pierwszej wojny światowej

2015 ◽  
pp. 17-48
Author(s):  
Marcin Markowski
Keyword(s):  
World War I ◽  
Graphic Design ◽  
World War ◽  
Legal Tender ◽  
Paper Money ◽  
German Army ◽  
General Government ◽  
Occupied Territories ◽  
The Russian Empire ◽  
Set Up

The occupation authorities set up their own institutions that issued their own legal tender banknotes in the territories of the Russian Empire and the Kingdom of Romania occupied by the German army during World War I. The introduction of paper money with a new graphic design began in the middle of 1916.Lower denominations of ostrubles and ostmarks, designed for areas east of the Ober-Ost, had the poorest layout of all the money issued by the Germans in the occupied territories in the East – they were embellished only by an ornamental  drawing. In contrast, the highest denominations – 100 ostrubles, 100 and 1,000 ostmarks – had a very extensive iconography, which distinguished them from paper money earmarked for the occupied territories in Eastern Europe. Banknotes intended for the General Government of Warsaw had the most national character due to the presence of the White Eagle on the intense red background. In contrast, apart from the language, paper money intended for other occupied territories did not have any graphic features that would be targeted at ethnic groups such as the Lithuanians, Latvians and Romanians. The layouts of these banknotes contain references also to the Greek and Roman mythologies. These references include male and female busts and a group of characteristic attributes that suggest that these are images of Demeter, Athena, Hermes and Ares.

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