The Supreme Court has also held that the power to coin money imports authority to maintain such coinage as a medium of exchange at home, and to forbid its diversion to other uses by defacement, melting, or exportation. the Supreme Court sustained the power of Congress to make Treasury notes legal tender in satisfaction of antecedent debts. Inasmuch as every contract for the payment of money, simply, is necessarily subject to the constitutional power of the government over the currency, whatever that power may be, and the obligation of the parties is, therefore, assumed with reference to that power, 7 Footnote To this end, it may impose a prohibitive tax upon the circulation of notes of state banks 5 Footnote
and it may restrain the circulation of notes not issued under its own authority. Congress may charter banks and endow them with the right to issue circulating notes, 3 Footnote The Supreme Court has also construed Congress’s power to coin money and regulate the value thereof to authorize Congress to regulate every phase of currency. the Supreme Court has recognized Congress’s coinage power to be exclusive. īecause Article I, Section 10, Clause 1 of the Constitution prohibits the states from coining money, 1 Footnote To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
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