It seems that there are two sections in the constitution split between the federal and state governments – the power over currency. The federal government has the power to coin money and regulate the value of which seems to give it wide latitude over what it says a dollar is worth.
Under this power, it can say a dollar is worth so many barrels of oil, ounces of silver, pounds of cabbage, or nothing at all (fiat money). This begs the question: why would the writers of the constitution allow so much leeway over the nation’s currency when they themselves valued hard money?
The writers of the constitution decided to use the sovereign power of the states to keep the federal government in check by only allowing gold or silver currency to be used within their own borders.Details