Paper, or money . . .

1 The paper money that Abraham Lincoln issued was called “Greenbacks” because the imprint on its back side was printed in green ink.

2 Looking at a United States Greenback we see that this Two-dollar, dollar-bill is labeled as a Note, but since no due-date is given on it, we might describe it more properly as a quasi-Note.

3 The courts of the time accepted this instrument AS a genuine Note because provisions were made in the language of the Act that brought it into existence for its ultimate redemption in United States silver or gold coins.

4 Observe the sentence printed across the top of the front side:

5 You can imagine that the structure of this sentence and the words in it were chosen with great care after much deliberation.

6 Look carefully at each component of this sentence and see what you can learn.

7 “THIS” is used to distinguish this instrument from all the other Two-dollar, dollar-bills in circulation.

8 We can distinguish this bill from the others by its serial number:

9 We also see that this Two-dollar, dollar-bill was authorized by the ACT OF MARCH 3d 1863 and that it is one from “Series 1917” (not the year 1917 but Series Number 1917).

10 We see too that this instrument is self-declared to be A LEGAL TENDER FOR TWO DOLLARS, not just LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE.

11 The phrase A LEGAL TENDER is most interesting.

12 The article A indicates that THIS NOTE is just one of many . . . One of many what? . . . One of many legal tenders.

13 Legal tenders of what? Legal tenders from whom to whom?

14 Let’s dwell on this for a moment because this is very important.

15 A LEGAL TENDER

16 A thing used in making a legal tender, such as tendering a digital watch to get a car washed, can also be used in an illegal tender, such as for the slashing of tires on an automobile.

17 This piece of paper, this Two-dollar, dollar-bill, if used to get a car washed, would be used in a legal tender.

18 Further, this piece of paper could be used in an illegal tender to pay for the commission of a crime if it were not related to the phrase A LEGAL TENDER.

19 If this Note is A LEGAL TENDER — and it is — then what purpose could there be for using the non-specific phrase LEGAL TENDER?

20 History answers this intriguing question.

21 WARNING IGNORED

22 The issuers of this bill were faced with a dilemma.

23 The American public, recalling the cautions of the Founding Fathers concerning paper emissions in the newly united States, were strongly opposed, at least in principle, to any attempt to issue paper currency again.

24 The public was fearful that they would end up holding a lot of worthless paper, as had happened to Americans who gave up real wealth in exchange for the Continental currency.

25 Remember the phrase “Not worth a Continental”?

26 The political figures of 1861 were faced with a need to pay for the Civil War, but the Treasury was empty.

27 Rather than trying to raise money through taxes, which would have been impossible at that time, they elected to borrow the wealth of the people through a paper emission to guarantee payment for the war-related goods and services they hoped to obtain.

28 Aware of the public’s then aversion to paper emissions, Lincoln used the phrase A LEGAL TENDER as a psychological ploy.

29 This phrase was placed in a prominent location on the Notes to instill confidence, to say, in effect . . .

THINK OF THIS PIECE OF PAPER AS A GOVERNMENT AGENT WITH TWO DOLLARS OF EITHER GOLD OR SILVER MONEY STANDING BEFORE YOU WITH HIS HAND EXTENDED IN YOUR DIRECTION SAYING THIS MONEY IS YOURS IN EXCHANGE FOR THIS NOTE.

30 These bills were not redeemable when they were first issued; their redemption did not begin until about 1875.

31 Because these bills were not redeemable, their purchasing power declined in the first several years following their introduction into circulation.

32 But after they had depreciated to nearly their lowest level, certain wealthy speculators began to buy them at a sharp discount over their face value.

33 It was a “smart” move by these speculators, for within a few years the government began to redeem them at face value in precious-metal coins.

34 History reveals that these speculators knew what they were doing.

35 They had great influence in the United States Congress, so their speculation was a sure thing.

36 They knew what the future held because they controlled the people who controlled the future — the politicians of the time.

37 GREENBACK LEGAL-TENDER

38 If a citizen refused to accept these paper emissions in a tender for payment of a debt, the courts held that he waived his claim to payment.

39 Therefore, the public began to say that . . .

United States Notes are legal tender . . .

Paper money is legal tender . . .

United States Notes are paper money . . .

United States Notes are money . . .

United States Notes are Dollars . . .

40 Even the courts came up with incorrect statements:

40.1 United States Notes are lawful money . . .

40.2 The lawful money of the United States includes the circulating coins and Notes of the United States . . .

41 These colloquialisms, harmfully imprecise, like others from earlier years, became presumptuously “the law” in the public mind.

42 EXCEPT INTEREST ON THE PUBLIC DEBT

43 The critical writing on the back of a Lincoln “Greenback” reads:

This Note is A LEGAL TENDER at its face value for all Debts, Public and Private, except Duties on Imports and INTEREST ON THE PUBLIC DEBT. Counterfeiting or Altering this Note or passing any counterfeit or alteration of it or having in possession any false or counterfeit plate or impression of it or any paper made in imitation of the paper on which it is printed is a Felony and is punishable by $5,000 fine or 15 years Imprisonment at hard labor or both.

44 The placement and reference to “all Debts, Public and Private” on the back of the bill is curious but understandable, particularly in light of the clever way the exception is phrased — “INTEREST ON THE PUBLIC DEBT” is in full capitals on a line by itself as if the issuers did not want anybody complaining that they didn’t know that this Note couldn’t be used to pay the INTEREST ON THE PUBLIC DEBT.

45 Yet, we must ask why the exception was made.

46 Why shouldn’t the public’s creditors be compelled to accept these Notes?

47 Why make an exception for the public’s creditors? Everyone else had to accept these Notes.

48 Why couldn’t public’s creditors exchange them for goods and services in the marketplace, too?

49 Two reasons.

50 The INTEREST ON THE PUBLIC DEBT had to be paid in gold, while the PRINCIPLE didn’t have to be paid at all! — the PRINCIPLE could remain and continue to grow and earn MORE interest!

51 The INTEREST owed to the public’s creditors had to be paid in gold, that is until the United States became bankrupt because there was no more gold.

52 What’s more, the INTEREST ON THE PUBLIC DEBT was owed and payable to bankers who knew in advance that these bills would depreciate to but a fraction of their face value in a short time.

53 If those creditors could be shielded from having to accept the Notes now — if they could be protected against compelled acceptance at the whim of someone other than themselves — those creditors could make a killing by buying the bills at a fraction of their face value in a few short years.

54 Then, when the government instituted redemption for gold, a decade later (circa 1875) the investors would double or triple their money. Which they did.

55 May the grace of our Lord Jesus Christ be with you all. Amen.