This clause is pointing out that Congress was issuing credit even before we had our present day national banking system, and certainly before the Federal Reserve Act of 1913. In fact, the Continental Congress was issuing money even before there was an America, via the Continentals. And, as Stephen Zarlenga points out is his seminal work, "The Lost Science of Money," it was primarily British counterfeiting that devalued the Continental, not over-printing by the revolutionary Congress.
3. The constitutional authority to create and regulate money does not limit the Federal Government to creating money through the production of coins or currency or the process of debt creation but, except for a brief period during the administration of President Lincoln, the Federal Government has not exercised such authority more broadly.
Here the bill dispels the somewhat common misperception that the constitutional clause "coin Money" means to makes only coins, money. This clause in Article 1, Section 8, contrasts with Article 1, Section 10, which allows only gold or silver coin to be produced by the individual states.
A fuller explanation may be obtained by reading University of Montana's Robert Natelson's article here: Paper Money and the Original Understanding of the Coinage Clause
The bill goes on to say how the government retains the right to create interest-free money, and why that would be such a cost-saver for the government and taxpayer:
4. The creation of money by the banks in conjunction with the Federal reserve banks does not limit the constitutional authority of the Congress to create Government credit funds in the form of non-interest bearing credit to fund a legislatively approved program or prevent the Congress from creating such funds.
The creation of noninterest-bearing government credit funds in measured or limited increments for the purpose of funding capital and environmental projects in the public interest -
(A) will allow projects to be built for 1/2 to 1/3 the normal cost; and
(B) will allow more necessary projects to be built at a lower cost to the taxpayers and at the same time build additional wealth in the communities where such projects are located.
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