What does the phrase from the Constitution “…to coin money…” mean?
This phrase is from Article I, §8, cl. 5 and reads in full: “To coin Money, to regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.” This clause is part of the specific powers enumerated to Congress. Until 1861, Congress did not consider the phrase to mean that Congress had the power to create paper currency. Until that year, the clause was interpreted to mean solely that Congress could establish mints and convert into coin the people’s gold and silver bullion. In other words, the production and creation of money was a byproduct of the people engaging in the free market. The Founding Fathers believed the creation of currency was best left to the people and that Congress had no authority to create currency. That the Founding Fathers believed as much as can be discerned from the many papers and notes written at the time of the Constitution’s ratification. Until 1861, the methods available to Congress for collecting revenues was through land sales
