Did Act of June 5, 1933 or Act of 1965 give full legal tender to older coins first?

Prethen

I may have been under the mistaken impression that the Act of 1965 gave legal tender status to all past coins, such as large cents and two cent pieces. It has come to my attention, I may have been wrong and that this was done by the Act of 1933. Why have I only heard of the 1965 Act given all coins legal tender status?

RRich2004

When the Coinage Act of 1965 was passed, it had an important clause that ratified the legal tender status of all American coins and currency previously produced.

The Coinage Act of 1933 removed the Legal Tender status of British coinage in New Zealand.

Are you sure you don't mean the Gold Confiscation Act of 1933?

Jamericon

Section 43(b)(1) of the May 12, 1933 Agricultural Adjustment Act gave all currencies and coins full legal tender status: "Such notes and all other coins and currencies heretofore and hereafter coined or issued by or under the authority of the United States shall be legal tender for all debts public and private."

The June 5, 1933 House Resolution, which clarified that contracts with gold obligations were illegal, added additional language to the above statement. Most importantly, it valued gold coins by weight in proportion to their original weight and not by the minted face value: "All coins and currencies of the United States (including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations) heretofore or hereafter coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties and dues, except that gold coins, when below the standard weight and limit of tolerance provided by law for the single piece, shall be legal tender only at the valuation in proportion to their actual weight."

Section 102 of the 1965 Coinage Act confirmed the legal tender status of clad coinage, as well as reaffirming the legal tender status of all coins and currencies:
"All coins and currencies of the the United States (including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations), regardless of when coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties and dues."

ProofArtworkonCircs

Excellent reply. The legal tender status of Trade dollars and over 25 cents in cents and nickels and over $10 in subsidiary coins is still in doubt. According to the Treasury, a judicial decision is needed here to settle the matter, which I doubt will ever be done. The proper way to repeal an old law is to mention it.

Prethen

So....it was really the 1933 Act, NOT the 1965 Act, that gave coins such as Half Cents, Large Cents, copper-nickel cents (Flying Eagle and early Indian) full legal tender status?

That's definitely news to me but very useful information.

Jamericon

Clarified my OP with the actual language ratified in section 102 of the 1965 Coinage Act. I mistakingly copied the section from a draft copy of the Act.

"All coins and currencies of the the United States (including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations), regardless of when coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties and dues."

In 1965, Congress wanted to reassure the public of the viability of our coinage, especially since we had finally gone to a true token system. Regardless, the language only confirmed the legal tender status granted 30 years prior.

Prethen

And, are we certain that the 1933 Act was actually signed into law and not just simply a House Resolution that was approved on June 5, 1933?

Thanks a bunch for your responses!

ProofArtworkonCircs

<<And, are we certain that the 1933 Act was actually signed into law and not just simply a House Resolution that was approved on June 5, 1933?>>

I think it was but can't prove it at the moment. That act modified the one of May 12, 1933 by improving the definition of legal tender. There was an old court ruling that "public dues" were not "debts", so public dues were not included in the original wording. This new legal tender status also applied to the various types of currency.

Only gold certificates, as of late 1919, were legal tender for all debts and dues. The 1933 $10 Silver certificates carried the new legal tender clause as well as the May 12, 1933 date. The issue of these certificates were authorized by the May 12 Act. The other series of notes had the legal tender clause added.

The law has been recodified since 1965. The legal tender statement was simplified and "public dues" dropped. This required a subsequent admendment, again, to add it back in.

Prethen

So, I still have this last sticking point...did this House Resolution really become law.....

ProofArtworkonCircs

Here is the complete text of the June 5, 1933 joint resolution of Congress. It states it was quickly signed by President Roosevelt. There is some consevative commentary presented with it.

http://www.truthsetsusfree.com/HJR192.htm

scottgardener

Since the 1965 law does not exclude gold coins, it would appear to override the 1933 law and reinstate gold coins as legal tender, making it technically legal to buy a DVD with a Saint Gaudens double eagle and get in change a Carver commemorative, a silver eagle, and one of those giant new five ounce silver quarters.

ProofArtworkonCircs

Strangly enough gold coins were still legal tender under the 1933 law, if full weight and proportionly if not.

<<All coins and currencies of the United Stated (including Federal Reserve notes and circulating notes of the Federal Reserve banks and national banking associations) heretofore or hereafter coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties, and dues, except that gold coins, when below the standard weight and limit of tolerance provided by law for the single piece, shall be legal tender only at valuation in proportion to their actual weight.'>>

1934 series gold certificates stated that they were legal tender.

Prethen

The problem is there's no proof that this House Resolution was ever signed into law. As it stands, the only law that actually be proved to be enacted to have made all previously minted coins legal tender was the Coinage Act of July 23, 1965.

ProofArtworkonCircs

<<The problem is there's no proof that this House Resolution was ever signed into law. As it stands, the only law that actually be proved to be enacted to have made all previously minted coins legal tender was the Coinage Act of July 23, 1965.>>

You are correct. We have not proved it within this thread yet. I am pretty sure that it could be done though. We need an old copy of the United States Code before 1965.

Prethen

This is probably the reason that folks like Breen only quote the 1965 Act. Yes, we always here how inaccurate he is on supposedly tons of subjects. But, he still was one of the leading numismatic researchers and at this point, there's nothing proving that he was incorrect on that fact.

RWB

What are you referring to with: "1933 Act" ?

Prethen

<< <i>What are you referring to with: "1933 Act" ? >>


There's a House Resolution approved on June 5, 1933 that appears to have made all coins ever minted by the U.S. as fully legal tender. But, it may never have been truly enacted.

RWB

OK. I see what you mean. A joint resolution signed by the President is similar to a normal bill, except it is commonly used for short term items. In this instance the treasury was concerned about having to pay interest on government bonds in gold, while simultaneously collecting it from hoarders amidst a floating commercial price of about $29 per ounce.

The joint resolution makes all “dollars” the same, with no distinction of the backing of the dollar (bonds, notes, silver, gold, etc.)

The paragraph referred to simplifies the matter by stating that any coin or paper currency issued by the government is valid for payment. The Coinage Act of 1965 was intended to be a broader, permanent statement rather than short term as the 1933 JR.

The Gold Reserve Act of 1934 superseded this joint resolution.

Prethen

PM sent.