Why is it bad if each state has its own paper money
Well, in the united states many people will travel. Imagine if you had to change your money before entering each state. Or if you were going to go on a road trip. It would be to hectic to even try to do.
There are many reasons why it would be bad, I'm sure you can come up with more reasons on your own.
Also: Article 1, Section 10, The U.S. Constitution: "No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility. So, unless its gold or silver, it'd be unconstitutional
The federal government has the expressed power to print currency, so that would be an issue with the states. Also you have to consider what sort of currency the government use on federal spending. It was cause many issues..
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