Hard money (policy)

Hard money policies support a specie standard, usually gold or silver, typically implemented with representative money.

The 1875-CC Liberty Head design
The 1924 Double eagle, Saint Gaudens' design

In 1836, when President Andrew Jackson's veto of the recharter of the Second Bank of the United States took effect, he issued the Specie Circular, an executive order that all public lands had to be purchased with hard money.

A hard money policy is one in which the government recognizes currency which is based on an actual, fixed item which is inherently valuable. The use of fiat money is now more common than the use of hard money, especially on an international level. The US dollar, for instance, is an example of a fiat currency.

Bentonian currencyEdit

In the US, hard money is sometimes referred to as Bentonian, after Senator Thomas Hart Benton, who was an advocate for the hard money policies of Andrew Jackson. In Benton's view, fiat currency favored rich urban Easterners at the expense of the small farmers and tradespeople of the West. He proposed a law requiring payment for federal land in hard currency only, which was defeated in Congress but later enshrined in an executive order, the Specie Circular.[1]

See alsoEdit

ReferencesEdit

  1. ^ Violette, Eugene (1918). History of Missouri. New York: D.C. Heath & Co. p. 275.

Further readingEdit