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Current subject in the USA as well as in Russia as well as in Poland
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An interesting communicative happened in the American state of Colorado. At present in this country, coins in circulation that are "legal tender" seem no longer to be hard money or even legally recognised money.
Last month, the justice of that state ruled that the company's owner acted "in maliciously and in bad faith", paying $23,500 in coins with various denominations (i.e. coins 1, 5, 10 and 25 cents) into 1 large box weighing £6,500 (near 2,950 kg) as a repayment of debt to another company.
The final decision of the court was that the defendant, the welding company and its owner, had to pay this amount in a more convenient way than in coins.
The plaintiff's lawyer stated that the coin payment was a ‘small and large waste of time’, a ‘symbolic mediate finger’ and a ‘large push’ in a well-known direction.
The justice ruled that the payment of the coin was a ‘tax [injury] designed to thwart and undermine the plaintiff's ability to get full benefits from the transaction by making the payment so burdensome and costly that it reduced the amount of the net settlement’.
The payment of almost 3 tonnes of coins may have been a mockery on the part of the accused, but the companies could have previously agreed more detailed payment terms. However, the legal tender payment was as much as a cent.
In any event, the usage of coins as a legal form of payment is recognised and theoretically protected by United States national law. The legal tender section states: ‘United States coins and currency [including national Reserve banknotes and another national Reserve Banks and National Banks banknotes] are legal tender for all debts, government charges, taxes and obligations’
Of course, this legal form of payment does not necessarily should be accepted by the seller or company, and in any cases even state governments have stated that they will not accept payments above a certain amount in dollar coins.
However, the fact that coins with tiny denominations are now perceived by many as burdensome reflects the failure of their purchasing power.
In 2018, 1 congressman speaking in the U.S. legislature said:
"I'm just proposing to quit a cent. It's not currency, it's garbage. If a cop saw me throw cents on the ground, I'd get a ticket for garbage, and if I tried to pay that punishment with centons, the justice would be very upset.
Cent has been our lowest currency since 1857, since Lincoln. Well, he wouldn't throw a cent on the ground and call it garbage, due to the fact that then a cent was worth more than a dollar today...”
Even 100 years ago, a one-time payment in coins was rather acceptable, although counting them would inactive be tedious. Since then, inflation has greatly devalued the value of all currencies and forms of payment in the United States. In 2023, providing the same purchasing power as $23,500 in 1923 would require over $420,000.
Due to the inflation generated by the United States national Reserve, copper contained in 1 cent copper coins issued before 1983 is now worth nearly 3 cents.
Although the justice refused to recognise coins as legal tender, recycling of the same copper cents as scrap metallic is punishable under US law. This will consequence in a fine of $10,000 and 10 years in prison.
Returning to his homeland, during the Russian-wide action “Monette Week” held under the patronage of the Bank of Russia from 25 September to 8 October 2023, The Russians donated 87 tons of change to the banks.
The Central Bank of the Russian Federation stated: "As a consequence of the event, more than 20 million coins worth nearly 83 million rubles have returned to active circulation". Time will show whether this small thing will return to active circulation, or the Russian Bank has decided to make additional money on metallic sales.
SOURCE
https://t.me/leshavahoney/2294
(PZ)
