Legal Tender?

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I've been reading the work of Laura Bell. She is releasing a book at http://TRCBPress.com shortly. I know because I'm her ‘man' over there. And in my opinion, she is a damn good read in helping me (and others) understand economics.  Thanks kiddo.

Maybe you have heard the saying, a day late and a dollar short? That's me. She finished her work today. I had been meaning to ask her to tell me how this economics stuff works with the government.

I mean the Unites States Government. Have you ever looked at what it says on that green paper they put out? It says, "This note is legal tender for all debts, public or private".

Have you ever tried to pay your government fees for say, your passport, using cash? It's the folks in Washington D.C. known as the State Department, who do not honor the green stuff from another Washington D.C. agency called the Treasury Department.

That got me wondering (and since I didn't think of this in enough time to ask Laura Bell), I asked my next favorite Subject Matter Expert (Google).  It came back with an official answer from the government.  It states:

Question: I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?

Answer: The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal Reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.

Now if you saw something in this answer I didn't see, please comment below.  What I'm getting is ‘an organization' (The State Department) doesn't have to accept the ‘coin of the realm' from its folks across the hall (The Treasury Department).

And somehow, we're all supposed to feel really good all of Washington D.C. is spending just under a trillion dollars. Yet, Uncle Sam won't accept its own money...

Oh Laura! I'll even type this one up for you... if you will only explain this one to me.

Tcat Houser is a trainer in Information Technology as well as assisting people understand the most complex computer all, the human brain. This necessitates his being a professional Road warrior.

As A Certified Technical Trainer and Subject Matter Expert (SME) @ TRCB.com it can be difficult to figure out what Tcat is currently researching.

See my lastest work at TRCBVideos.com - Convert Articles, Reviews into Videos Automagically.

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