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Finance 9 Online
OpenStudy (anonymous):

when exactly did the federal reserve take over the "printing" of our money? Wasn't this the function of the treasury at one time as per Article 1, Sec. 8 of the constitution, "the power to coin the money."

OpenStudy (gw2011):

Apparently the Federal Reserve can print Federal Reserve Bank Notes which are considered legal tender. However, they are backed by whichever Federal Reserve Bank prints them--they are not backed by the entire 12 Federal Reserve Banks. They have printed these notes back in the early 1900s. In fact, the U.S. Code 31 USC 5103 which can be found on the internet states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues." So, theoretically they have and can print money.

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