Is Coining Money a Federal Power

The federal government has the exclusive power to create and regulate the currency of the United States. This power is derived from the Constitution’s Coinage Clause, which states that “Congress shall have the power … to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.” This power includes the authority to design, mint, and distribute coins and paper money. It also gives the federal government the authority to set the value of coins and foreign currency and establish standards for weights and measures. The Coinage Clause is essential for ensuring the stability and integrity of the nation’s monetary system.

Constitutional Authority

The power to coin money is explicitly granted to the federal government by the United States Constitution, Article I, Section 8, Clause 5. This clause states that Congress shall have the power “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.”

This power has been interpreted by the courts to give the federal government the exclusive authority to create and issue currency within the United States.

## Historical Precedent

Article I, Section 8, Clause 5 of the United States Constitution gives Congress the exclusive power to coin money, regulate its value, and fix the standard of weights and measures. This power has been interpreted by the Supreme Court to include the power to issue paper money and to establish a central bank.

The first coins minted by the United States were silver half dollars, dimes, and quarters, which were authorized by the Coinage Act of 1792. Gold coins were first minted in 1795, and nickel coins were first minted in 1866. Paper money was first issued by the federal government in 1861, during the Civil War. The Federal Reserve System was established in 1913 to regulate the nation’s banking system and to issue paper money.

### Table of Key Dates

| Date | Event |
|—|—|
| 1792 | Coinage Act of 1792 authorizes the minting of silver half dollars, dimes, and quarters. |
| 1795 | Gold coins are first minted. |
| 1861 | Paper money is first issued by the federal government. |
| 1866 | Nickel coins are first minted. |
| 1913 | Federal Reserve System is established. |

Supreme Court Rulings

The Supreme Court has ruled on the federal government’s power to coin money on several occasions.

• In 1796, the Court ruled in Ware v. Hylton that the federal government has the exclusive power to coin money.
• In 1824, the Court ruled in McCulloch v. Maryland that the federal government has the power to create a national bank.
• In 1892, the Court ruled in United States v. Marigold that the federal government has the power to issue paper money.

These rulings have established that the federal government has the exclusive power to coin money and issue paper currency.