In 1928, a dollar bill bore the …
Posted on December 10, 2014 by Robert Ringer
In 1928, a dollar bill bore the following inscription: “The United States of America will pay to the bearer on demand one dollar. Redeemable in gold on demand at the United States Treasury.”
By 1963, the inscription on the dollar bill had been changed to read: “This note is legal tender for all debts public or private.” Translation: This piece of paper is money because the government says it is.
Quite interesting to note that when the dollar was backed by gold, it was not necessary for the government to state that it was “legal tender.” It proves once again that all things are possible through the combination of a low-information populace and the phenomenon of gradualism.