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Later kings and governments introduced gold and silver coins to control the
money supply. The gold and sliver alone held intrinsic value and was readily
accepted by traders.
When the United States of America was formed the Constitution dictated that
any monetary system the government supported could only use silver and gold as
currency: Article 1, Section. 10. “No State shall enter into any Treaty,
Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money;
emit Bills of Credit; make any Thing but gold and silver Coin a Tender in
Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law
impairing the Obligation of Contracts, or grant any Title of Nobility.”
Gold and silver however made cumbersome and risky currency to carry. Hauling
a trunk full of gold through the forest was not only a burden, it was likely to
attract bandits. |
