Even looking at the notes in isolation, I hold the view that the - TopicsExpress

Even looking at the notes in isolation, I hold the view that the statutory declaration that the notes are legal tender, added to the fact that they have no convertibility into gold or anything else, is a more persuasive indication of their character than the inscription on them that they are payable to bearer on demand. As I have already noted, a promissory note, by definition, involves an unconditional promise to pay a sum certain in money, but it is not itself money. True, the obligation of a promissory note may be carried forward by a renewal note, but no matter how many renewals there be, or how many replacements under different terms, there is no liquidation of the debt until it is discharged, and this may be by money or money’s worth or the debt may be forgiven. To say that a bank note of the kind involved here imports similar legal consequences, that a non-convertible bank note is paid off by the giving of a bank note of similar face value is to go around in a circle: legal tender is exchanged for legal tender; a different piece of paper, true, but indistinguishable in legal effect from the one surrendered for it.

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