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Old 04-29-2008, 04:22 PM
Shoonra Shoonra is offline
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Join Date: Oct 2005
Location: Maryland
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I would assume that the term "lawful money" was applied to paper United States Notes to indicate that they were legal tender -- that is, money created by law rather than by market forces (like precious metal) , effectively fiat money since United States Notes were not guaranteed convertible to gold or silver. According to Nussbaum's Law of Money, this seems to have been the intended usage.

Going back to the business about the repeal of "HJHR 192", this was in the last paragraph of Public Law 95-147, Oct. 28, 1977, 91 Stat. 1227, "An act to authorize the Secretary of the Treasury to invest public moneys and for other purposes."

Sec. 3(c) {at 91 Stat 1229} said:

Quote:
The joint resolution entitled "Joint resolution to assure uniform value to the coins and currencies of the United States," approved June 5, 1933 (31 USC sec. 463), shall not apply to obligations issued on or after the date of enactment of this section.

This made it possible to include valid and enforceable gold clauses in contracts, beginning as of Oct 28, 1977. Apparently another public law revived those gold clauses that had existed prior to June 5, 1933. As far as I know, gold clauses in contracts made between the dates of the 1933 and 1977 laws were and remain unenforceable.
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