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<p>[QUOTE=&quot;Jamericon, post: 1497937, member: 18294&quot;]&lt;&lt;I&#039;ve never understood how the government was able to legally retroactively stop&nbsp; honoring their silver certificates legally. The wording on the bills is pretty&nbsp; clear as to what they are valid for. Does anyone know how the justified no&nbsp; longer honoring them even after dropping the metal standard?&gt;&gt;</p><p><br /></p><p>Because paper money is an instrument of the authorizing laws, not the other way around. They simply express what the laws say.</p><p><br /></p><p>By the early 1960s, the bullion value of silver had exceeded the Treasury&#039;s monetary value ($1.29 per ounce). It was financial suicide for them to continue issuing silver certificates at a loss. So Congress amended the laws by rescinding the 1934 Silver Purchase Act, and the Treasury stopped issuing silver certificates, and eventually stopped redeeming for silver the certificates outstanding.[/QUOTE]</p><p><br /></p>

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