Knox v. Lee
Quick Summary
The Legal Tender Cases, decided by the U.S. Supreme Court in 1871, addressed whether Congress had the power to declare government-issued paper money, known as "greenbacks," as legal tender for all debts. These cases, Knox v. Lee and Parker v. Davis, arose after the Civil War when the government issued these notes to finance the conflict. Initially, in Hepburn v. Griswold, the Court ruled that Congress lacked this power. However, after President Grant appointed new justices, the Court reconsidered and, in Knox v. Lee and Parker v. Davis, reversed its earlier decision. The Court upheld the constitutionality of the Legal Tender Act, affirming Congress's authority to issue fiat currency, especially during times of national emergency.12
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- Legal Tender Cases
In Knox v. Lee and Parker v. Davis, the Court reversed its Hepburn v. Griswold decision 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.
Read MoreIn Knox v. Lee and Parker v. Davis, the Court reversed its Hepburn v. Griswold decision 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.
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William StrongThe following year, in Knox v. Lee and Parker v. Davis (1871), the newly formed court overturned the Hepburn decision by a vote of 5–4. Strong spoke for the majority, upholding the government’s power to enact legal-tender legislation and defending such power under the “necessary and proper” clause of…
Read MoreThe following year, in Knox v. Lee and Parker v. Davis (1871), the newly formed court overturned the Hepburn decision by a vote of 5–4. Strong spoke for the majority, upholding the government’s power to enact legal-tender legislation and defending such power under the “necessary and proper” clause of…
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