Dr. Dawinder S. Sidhu, professor of constitutional law and national security at the New Mexico School of Law, wrote an article in which he presented the historical actions of Eldridge Gerry Spaulding, chairman of the House Ways and Means Subcommittee on Banking and Currency, to create the fiat currency known as the greenback.
The advent of the greenback, green paper currency not backed by anything of intrinsic value, like gold or silver, created as a war measure in 1862, was a lawless act because it violated restrictions in the Constitution prohibiting such measures.
Very few Americans understand how the Constitution defines “dollars” or the constitutionally delegated monetary powers and prohibitions to Congress and the States. As a result, Americans take many unlawful monetary policies for granted, because they have known nothing different and have not questioned the national government’s authority to do the things it has done.
Every American should question if the government has the authority to emit a legal-tender paper currency irredeemable in silver or gold coin. If they have the authority to seize the people’s gold like the FDR administration did in 1933. If they are authorized to make the notes of private banks obligations of the United States and legal tender or allow private banks, through an administrative agency exercising unlimited discretion, to draw money from the Treasury without specific appropriations made by law.