Alabama Constitution Section 249 Bills or notes issued as money redeemable in gold or silver laws not to sanction suspension of specie payments
Here is the text of Section 249 of the Alabama Constitution:
Section 249 – Bills or notes issued as money redeemable in gold or silver; laws not to sanction suspension of specie payments.
No money shall be issued by the state except in the form of bills or notes which shall be redeemable in the coin of the United States; and the legislature shall not authorize any bank to issue bills or notes of any description intended to circulate as money.
The legislature shall not have power to authorize, by general or special law, any individual or individuals, company, or corporation to issue bills, checks, tickets, promissory notes, or other paper to circulate as money.
The legislature shall not pass any law sanctioning, directly or indirectly, the suspension of specie payments by any person, association, or corporation issuing paper money.
Summary:
The state may only issue money redeemable in U.S. coin (i.e., gold or silver).
Banks, individuals, or companies cannot issue paper intended to circulate as money.
The Legislature cannot allow the suspension of specie payments (payments in actual coin) by those issuing paper money.
Purpose:
This section was designed to:
Ensure monetary stability.
Prevent the circulation of unregulated or unsupported paper money.
Support a sound currency system based on specie (coin) payments.
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