Posts Tagged ‘Legal Tender Note’

Gary northIn his February 1, 2012 article, Ben Bernanke: The Official Counterfeiter, Gary North states:

There used to be a legal competitor issued by the U.S. Treasury. We read on Wikipedia:

A United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for over 100 years, they were issued for longer than any other form of U.S. paper money. They were known popularly as “greenbacks” in their heyday, a name inherited from the Demand Notes that they replaced in 1862. Often called Legal Tender Notes, they were called United States Notes by the First Legal Tender Act, which authorized them as a form of fiat currency. On the back, they give notice that:

This Note is Legal Tender for All Debts Public and Private Except Duties On Imports And Interest On The Public Debt; And Is Redeemable In Payment Of All Loans Made To The United States.

North has been known to derisively refer to supporters of the interest-free paper money as “Greenbackers,” showing how out of touch he is in calling Ellen Brown a Greenbacker, considering she says the issuance of paper money at the federal level is unconstitutional.

Notice how he later focuses his readers’ attention on an insignificant difference between the two notes:

The Federal Reserve’s Notes looked very much like the Treasury’s greenbacks until the U.S. Notes were taken out of circulation.

As if the look of the two notes is at all significant compared to the fact that U.S. Notes are interest-free, and no interest was due — or ever will be due — on them.

For more on interest-free United States Notes, see my article, The Federal Reserve lies about United States Notes (Lincoln Greenbacks).

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