When was it legal to spend foreign coins in the USA?

I got a 1904 diez centavos de Balboa in change years ago. It's silver and their first year of coinage after independence. Pretty cool.

 

Log in or Sign up to hide this ad.

This is not an easy question.

Frankly I don't think it has ever been illegal to spend foreign coins. If you spend a Canadian quarter with me and I accept it I don't believe either one of us has committed a crime.

If you are asking when did foreign coins stop being legal tender the answer is still complicated. While the Act of Feb 1857 ended the legal tender status of foreign coins as of 1859, a later legislation extended it for another year but then was quickly rescinded. Even after 1859 the post office continued accepting Mexican silver coins for postage for many years after that period (until at least the 1870's).

In addition there were several periods before 1857 when foreign coins were not legal tender (No foreign coins were legal tender from 1802 to 05, 1810 to 15, and 1827 to 33.). Also contrary to common belief, not all coins were legal tender. Only specific coins were legal tender, and those were listed by legislation. And with the exception of some Spanish and French fractional coins, no coins smaller than silver dollar size were ever legal tender. Spanish fractional coins stopped being legal tender in 1809 and the French fractionals in 1857. Mexican fractional coins were never legal tender even though for many years they made up the bulk of our circulating coinage.

Oddly while British gold was legal tender, British silver coins were not.

Trade dollars lost their legal tender status in 1876 and didn't get it back until 1933. One cent pieces were not legal tender until 1864, and the half cent was not legal tender until 1933. In 1933 all US coins were made legal tender by Congressional resolution, and it was again restated in the coinage act of 1965.

 

As stupid as this sounds...I have never fully understood the legality of "legal tender" anyway. I can accept or refuse any form of payment I choose. I know that by producing a standard currency (our "legal tender" dollar) it simplifies the process...but I'm legally bound to accept it and/or not accept anything else.

I'm speaking from a purely legal standpoint...yes, I do accept USD at my office and I don't take anything else.

 

Up until the mid 20th century it was commonly felt that Legal Tender meant it HAD to be accepted. That is no longer the accept definition. Now it is viewed that legal tender is a legally accepted form of payment and if offered for a debt it is considered to be a legal offering of payment. You can still choose not to accept it, but if you do, no penalties for non-payment may be applied.

 

So...what you are saying is. If I go into Subway and try and pay for my sandwich with a $100 bill and they refuse it (which they will)...I get it for free?

 

That's a purchase not a debt. Now if you eat the sandwich first, then it's a debt. And no you don't get it for free, you still owe for the sandwich. I'm not sure if you could be arrested for non-payment, I don't think so because you did try and make a legal payment.

 

OK...that makes more sense. I guess I wasn't thinking about the difference between a purchase and a debt.

 

Canadian currency is regularly accepted in stores and restaurants here due to the influx of Canadian snowbirds during winter months. I'm not sure how or even if they adjust for the current exchange rates, or just accept at face since they are relatively close.

 

series 1900 $10,000 bills were demonitized after a large number were thrown into the street when the treasury caught fire in the 1930's.

 

Really! I had never heard that.

 

otherwise you probably wouldnt see this: http://www.ebay.com/itm/1900-10-000...340?pt=LH_DefaultDomain_0&hash=item3a8d4b82ec

 

Yes, of course you can. But if there is a debt involved (maybe a patient that owes you for services rendered) then there are ramifications to refusing a legal offer of payment.

 

That is not US currency. It is a certificate of deposit.

 

My understanding is...this issue arises when interest is involved. That you can't refuse a legal form of payment and then continue to charge interest on the debt. But, I could be wrong.

However, my question was more about purchasing and fee for service than paying off a debt and it was answered by Condor several posts ago.

 

Yes, but not just interest. A refusal can also complicate late fees, fines, restoration of service, return of seized property, etc.

 

I know...I just threw out interest because it was the simplest reason and the first that came to mind. Again...my original question had more to do with purchasing ability and fee for service than paying off an established debt.

 

I think cents are only legal tender for less than a dollar.

 

I'll wait for others to answer.

 

When my wife and I went to the Bahamas, none of the local merchants wanted you to pay in Bahamian Dollars, they all preferred US dollars. Funny how within their own country they prefer "foreign" currency. We rented wave runners and when I went to pay the guy in Bahamian dollars (which I stupidly exchanged at the airport in advance), he looked at me like i was trying to hand him a dirty Kleenex. "You dont have American money?". Silly me, trying to pay in the local currency...