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"What were the significant legal tender cases of Knox v.
Lee and Parker v.
Davis, and how did they shape US currency laws?"
The Legal Tender Act of 1862 was a federal law authorizing the creation of paper money, known as United States Notes, to finance the American Civil War, allowing the government to print $420 million worth of paper currency without gold or silver backing.
The Legal Tender Act of 1862 was signed into law on February 25, 1862, and additional acts on July 11, 1862, and March 3, 1863, which declared the new currency to be a legal tender in payment of all debts.
The Legal Tender Act was passed to address the lack of treasury notes in circulation, as the government struggled to fund the war effort, and to also address the gold reserve crisis.
The case of Knox v.
Lee and Parker v.
Davis dealt with the constitutionality of paper money and the power of Congress to authorize government notes not backed by specie as money that creditors had to accept in payment of debts.
The US Supreme Court's decision in Knox v.
Lee and Parker v.
Davis affirmed the constitutionality of paper money and the power of Congress to make treasury notes a legal tender in discharge of pre-existing debts.
The Hepburn v.
Griswold decision was reversed in the cases of Knox v.
Lee and Parker v.
Davis by a five-to-four majority, asserting that the Legal Tender Act represented a justifiable use of federal power at a time of national emergency.
The decisions in Knox v.
Lee and Parker v.
Davis were significant in that they established the constitutionality of paper money as a means of financing government activities.
The Legal Tender Act of 1862 authorized the Secretary of the Treasury to issue United States Notes worth up to $300 million, which was a significant amount considering the economic constraints of the time.
The cases of Knox v.
Lee and Parker v.
Davis were significant in that they established the principle that during times of national emergency, Congress has the power to take extraordinary measures to ensure the continued functioning of the government.
The decisions in Knox v.
Lee and Parker v.
Davis were notable for their impact on the relationship between the federal government and the states, as they established the federal government's authority to take action to stabilize the national economy.
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