LEGAL TENDER. That currency which has been made suitable by law for the pur poses of a tender in the payment of debts.
The following 'descriptions of money are legal tender in the United States : AU the gold coins of the United -States are a legal tender in all payments at their nominal value when not below the stand ard weight and limit of tolerance prescribed by law for the single piece, and, when re duced in weight below such standard and limit of tolerance, they are a legal tender at valuation in proportion to their actual weight.
Treasury notes (of the act of July 14, 1890) and standard silver dollars for all payments.
Silver coins of a smaller denomination than one dollar, for all sums not exceeding ten dollars.
The minor coins, of nickel and copper for all amounts not exceeding twenty-five cents. United States notes are legal tender for all debts, public and private, except duties on imports and interest on the public debt. (United States notes, upon resumption of specie payments, January 1, 1879, became ac ceptable in payments of duties on imports and have been freely received on that ac count since the above date, but the law has not been changed.) Gold certificates, silver certificates, and national bank notes are not legal tender, but both classes of certificates are receivable for all public dues, while national bank notes are receivable for all public dues except duties on imports, and may be paid out by the government for all salaries and other debts and demands owing by the United States to individuals, corporations, and asso ciations within the United States, except in terest on the public debt and in redemption of the national currency. All national banks are required by law to receive the notes of other national banks at par.
Foreign coins are not a legal tender. R. S. § 3584.
In the Philippine Islands, the unit of value is the gold peso (12 9/10 grains of gold, nine-tenths fine), and the gold coins of the United States at the rate of one dollar for two pesos hereinafter in the act authorized, are legal tender for all debts, public and pri vate. Act March 2, 1903. Section 2 of that act provides the coinage of a silver' peso (416 grains, nine-tenths fine), which is made legal tender for all debts, public and private, ex cept that debts contracted prior to December 31, 1903, may be paid in the legal tender currency of the Islands existing at the time of making the contract.
In Hawaii silver coins coined under the laws of Hawaii are received in payment of all dues to the territory and the United States, but are not, when received, to tie again put in circulation. Act January 14,
1903. Se7tion 5 of that act provided that such coins should be legal tender for debts in the territory until January 1, 1904, and not afterwards.
As to trade dollars, see DOLLAR. See EAGLE ; HALF EAGLE.
By acts of February 25, 1862, July 11, 1862, and March 3, 1863, congress authorized the issue of notes of the United States, de claring them a legal tender for all debts, pub lic and private, except duties on imports and interest on the public debt. 12 Stat. L. 345, 532, 709. These notes are obliga tions of the United States, and are exempt from state taxation ; Bank of New York v. New York County, 7 Wall. (U. S.) 26, 19 L. Ed. 60 ; but where a state requires its taxes to be paid in coin, they cannot be discharged by a tender of these notes. A debt created prior to the passage of the legal tender acts, and payable by tne express terms of the con tract in gold and silver coins, cannot be sat isfied by a tender of treasury notes; Bron son v. Bodes, 7 Wall. (U. S.) 229, 19 L. Ed.
141; Butler v. Horwitz, 7 Wall. (U. S.) 258, 19 L. Ed. 149 ; Trebilcock v. Wilson, 12 Wall. (U. S.) 687, 20 L. Ed. 460. The legal tender acts are constitutional as applied to pre-ex isting contracts, as well as to those made subsequent to their passage ; Legal Tender Cases, 12 Wall. (U. S.) 457, 20 L. Ed. 287, overruling the previous opinion of the court in Hepburn v. Griswold, 8 Wall. (U. S.) 604, 19 L. Ed. 513. See 17 Am. L. Reg. 193 ; 19 id. 73; 25 id. 601. Congress has the consd tutional power to make the treasury notes of the United States a legal tender in pay ment of private debts, in time of peace as well as in time of war ; Juilliard v. Green man, 110 U. S. 421, 4 Sup. Ct. 122, 28 L. Ed. 204.
Federal reserve notes (Act of Dec. 23, 1913) are obligations of the United States and are made receivable by all national and member banks and federal reserve banks, and for all taxes, customs, and other public dues.
A postage currency has also been author ized, which was receivable in payment of all dues to the United States less than five dol lars. They were not, however, a legal ten der in payment of private debts. (Act of Congress, approved July 17, 1862.) See GOLD ; MONEY ; SILVER.
The quality of legal tender of coin Is an attribute of law aside from its bullion value, and renders such coin as the government has made legal tender subject to such rea sonable regulation by the police power as public policy may require, including prohibi tion against exportation ; Ling Su Fan v. U. S., 218 U. S. 302, 31 Sup. Ct. 21, 54 L. Ed. 1049, 30 L. R. A. (N. S.) 1176.