Arizona Gold & Silver "Legal Tender" Act Passes Senate Committee

Yet another State has introduced a version of a "Constitutional Tender Act" -- this time, it's Arizona, where the bill (the "Legal Tender Act") basically recognizes that U.S. Minted gold and silver coins ARE legal tender (which, of course, they are, under U.S. law). What that would mean, if this bill becomes law, is that they would NOT be taxed when exchanged for Federal Reserve Notes, since it's nonsensical to tax exchanges of currencies that are legal tender within the same country. (That would be like going to a bank, asking for two five-dollar bills for a ten, and having to pay a 50-cent tax for the exchange!)

While these kinds of bills (like the Utah law passed in 2011) are not "pure" Constitutional Tender Acts, since they only allow for voluntary exchanges of gold and silver coins (rather than requiring the State to use only gold and silver coins in all transactions, as Article I, Section 10 of the U.S. Constitution requires), they are still useful steps towards that ultimate goal of getting back to the Constitution and ending the Federal Reserve from the bottom up.

(To be honest, from a pure Constitutional position, this bill is still unconstitutional, because it states:
1-702(A): Legal tender in this state consists of all of the following: 
1. Legal tender authorized by Congress.
That is in violation of Article I, Section 10, which specifically states that "No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts". This means that no State can make something besides gold or silver a "tender in payment" (which means they cannot "make something else an offer as payment") for any debts -- regardless of whether Congress calls it "legal tender" or not. But let's not be picky at this moment...)

Arizona's Senate Finance Committee voted 4-3 in favor of this bill, so it now goes to the Senate Rules Committee as the next step on the way to a full vote in the Arizona Senate.

By the way, the reporter who wrote the article linked below got it WRONG, as so many reporters often do when discussing Constitutional Tender Bills. Usually, they make the mistake of saying "such-and-such State wants to print their own currency"; this time, the reporter claims that the State wants to make "privately minted gold and silver coins" legal tender. Oh well, at least WE know what's going on...

If you live in Arizona, scroll down to take action in support of this bill!

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Bill before AZ Senate committee called hedge against hyperinflation

February 21, 2013 12:00 am • Howard Fischer Capitol Media Services

PHOENIX - Arizonans who fear the federal government will make their folding money worthless may soon be able to substitute privately minted gold and silver coins.

The Senate Finance Committee on Wednesday took the first steps to making such coins legal tender in Arizona. SB 1439 would give them the same legal status as the bills and coins authorized by Congress.

Nothing in the proposal by Sen. Chester Crandell, R-Heber, would force anyone to actually accept these coins as payment for any debt. Their use would be voluntary.

But proponents said it's only a matter of time before the country suffers hyperinflation, making the greenback worthless.

"We need to have a lifeboat for Arizona so we can construct Plan B," testified Miles Lester.

The measure is crafted in a way intended to get around a provision of the U.S. Constitution that bars states from minting their own coins. But supporters also note it says states cannot "make anything but gold and silver coin a tender in payment of debts."

That, they contend, permits states to recognize coins minted by others.

Crandell said the ultimate bottom line is a lack of confidence in the dollar - or at least the real value of the dollar, what with the Federal Reserve continuing to print new money.

"I think you can see that all over the country," he said. Countries including China are moving to have their own currencies recognized as an international standard "because the dollar doesn't do what it used to do."

But Sen. Steve Farley, D-Tucson, questioned whether something else was at play. He said a similar Utah law adopted in 2011 was pushed by Old Glory Mint, a company that makes these gold and silver coins.

Beyond that, Farley said while the current financial system has its flaws, the country hasn't had the financial panics that occurred regularly in the 19th century.

"I don't see the need to go back to something that has proven to fail," he said.

But Sen. Bob Worsley, R-Mesa, said there may be reason to worry.

"We've never had this amount of debt as a country," he said. And Worsley said if people want the right to use silver and gold coins as legal tender, "I'm OK with that."

Sen. Michele Reagan, R-Scottsdale, said she wasn't going to speculate on the soundness of the dollar. But she agreed to go along, saying, "I don't see where it could hurt, either."

One thing the legislation would do is say taxes incurred by people using these coins "shall be paid proportionately in the same legal tender." Crandell said that is designed to ensure that people are paying only what they owe, without fear of losing value based on some artificial exchange rate.

READ THE FULL ARTICLE HERE...

If you live in Arizona, you can voice your opinion about SB 1439 by contacting your Arizona Legislators. For their contact information, visit: http://www.azleg.gov/MemberRoster.asp

Tell your Legislators that this bill is about more than politics - it's about the U.S. Constitution, it's about ARIZONA, and it's about saving the money of the citizens of this State!

Utah city to vote on bill supporting right to pay with gold coins

By Betsy Schow - Correspondent


HIGHLAND -- Highland residents might someday be able to pay their utility bills in gold or silver. At least that's what Councilman Tim Irwin would like to see happen.

The Highland City Council will vote on two resolutions Tuesday that would give Highland's support to Utah Gov. Gary Herbert's policies on public land and the use of gold and silver as legal tender. Irwin drafted both.

"The point is to give support to the governor to bring back sovereignty to Utah," Irwin said. "I'm getting active and concerned with the overreach of the federal government, and I'm doing my part in Highland to protect our freedoms for our grandkids."

He worked together with the Utah Precious Metals Association and Utah Lands Association to craft the resolutions for Highland...

Irwin claimed that proceeds of gold and silver coin minting were once used to pay off the national debt, and if coin usage were encouraged, it could serve as part of a possible debt solution. He hopes Highland's formal support would help the state move ahead in implementing the law's intended purpose -- to create a federally insured depository that would allow individuals to use the worth of the metals more freely. He envisions that if things go well, Highland might follow up with its own ordinance that would allow residents to pay their utility bills with gold and silver...

READ THE FULL ARTICLE HERE...

SD legislators say no to making silver and gold coins ‘legal tender’

Warnings about “hyperinflation” didn’t persuade South Dakota legislators to endorse the use of gold and silver coins on Wednesday.

Rep. Dan Kaiser, R-Aberdeen, had asked the Legislature to declare U.S.-minted gold and silver coins to be “legal tender” that could be used to pay state taxes at their market value.

“Within the borders of South Dakota, for our intra-state commerce, we are going to reserve the right for our citizens to use gold and silver as currency, especially in some case of emergency, if the U.S. dollar is no longer trustworthy as a source of currency,” Kaiser said.

The bill, House Bill 1100, left it optional for private businesses to choose whether to accept gold and silver coins, but said the metallic currency “may be used… in satisfaction of any tax.”

The state Department of Revenue opposed the bill, saying it would cause serious complications for state operations...

Supporters of HB 1100 repeatedly criticized the current U.S. dollar, whose value is maintained by the Federal Reserve rather than tied to a commodity.

“When we have a chairman of the Federal Reserve who contradicts the Constitution by saying that gold is not money… it is time for us to question the Reserve and make up our own laws,” said Sen. Dan Lederman, R-Dakota Dunes.

Lederman cast HB 1100 as a minor measure that wouldn’t have much effect — but one that laid the groundwork for future monetary reforms.

“To be honest with you, I think this is just the first step,” he said. “I really would like to see us return to using commodities as the value of the dollar, tying the dollar to the real world, not policies set by the Federal Reserve”...

Rep. Kristin Conzet, R-Rapid City, said she had “too many questions and not enough answers” about the proposal, and worried it would force “merchants to be experts in gold and silver.”

Disagreeing, Rep. Stace Nelson, R-Fulton, argued that “fiat currency” not tied to the value of a commodity was bound to collapse.

But he ended up in the minority. HB 1100 was killed 9-4.

After the vote, Kaiser, a first-year lawmaker, said he was going to focus on researching the issue to better address criticism next year.

READ THE FULL ARTICLE HERE...

Former NC Rep. Glen Bradley Talks To Cavuto On Sound Money (03/22/2011)

Gold and Silver Legal Tender Law Introduced in Indiana

Posted by Nick Hankoff

Senate Bill No. 99 has been introduced by State Senators Greg Walker and Jim Banks to free US-issued gold and silver coins from sales, use, and capital gains taxes.

SB-99 will add a new Chapter to the Indiana Code effectively making all taxes on gold and silver coins and transactions a thing of the past. From the bill’s synopsis:

Specifies that gold and silver coins issued by the United States government are legal tender in Indiana. Provides that a person may not compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract. Provides that the sale or other exchange of gold or silver coins issued by the United States government is exempt from state gross retail tax and use tax. Specifies that capital gains incurred on a sale or exchange of gold or silver coins issued by the United States government are not included in adjusted gross income for purposes of the state adjusted gross income tax.

On Monday, January 7 it will be read and referred to Committee on Tax and Fiscal Policy where co-author Sen. Walker sits. Should it pass on to the rest of the legislature then on to the governor’s desk and signed, the bill would become law by July 1 and the income tax aspects would be in effect January 1, 2014.

The fiscal impact report estimates that 2% of the US Mint’s gold and silver coins are in Indiana, calculating a $9.4 million loss in state revenue from retail and capital gains taxes. If accurate, that is a nice takeaway for Indianans who choose to transact with what the US Constitution lays out as legal tender under Article I, Section 10 – which reads “No State Shall…make any Thing but gold and silver Coin a Tender in Payment of Debts”

Dr. William Greene, in a paper for the Austrian Scholars Conference, explained how state legal tender laws can be an effective method to ending the fed from the bottom up. In essence, pulling the rug out from under their monopoly control of money:

“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State – as people in other States carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve Notes for any transactions.”

Utah passed a similar bill, HB-317, in 2011 legalizing Constitutional tender, gold and silver coins issued by the federal government.

ACTION ITEMS

If you live in Indiana, contact your state legislator. Let him or her know of your support for SB-99 and that you expect him/her to become a co-sponsor. Click here for contact information.

If you live outside of Indiana, still contact your state legislator. Inform him or her that you hope similar legislation will be introduced in your state. Visit this link for model Constitutional Tender legislation that can be introduced today:
http://tenthamendmentcenter.com/legislation/constitutional-tender/

Nick Hankoff is a monthly co-host for Tenther Radio, a member of the TACs national outreach team, and the Chair of the Los Angeles County Repubulican Liberty Caucus.

READ THE ORIGINAL ARTICLE HERE...

You can voice your opinion about this bill by contacting your Indiana Legislators. For their contact information, visit: http://www.in.gov/legislative/2345.htm

Virginia coin moves closer to reality

Virginia Del. Robert G. Marshall fears that a financial apocalypse is coming and only one thing can save the Commonwealth: its own currency.

The idea that Virginia should consider issuing its own money was dismissed as just another quixotic quest by one of the most conservative members of the state legislature when Marshall introduced it three years ago. But it has since gained traction not only in Virginia, but also in states across the country as Americans have grown increasingly suspicious of the institutions entrusted with safeguarding the economy.

This week, the proposal by the Prince William Republican sailed through the House of Delegates with a two-to-one majority.

“This is a serious study about a serious topic,” Marshall said Tuesday. “We’re not completely powerless.”

So far, only Utah has approved a law recognizing nontraditional currency. Four other states have bills pending this year. Marshall said he is unsure of his proposal’s prospects in the Virginia Senate. One Democrat derided it as a descent into “la-la land.”

But the fact that the debate is happening at all reflects a deep-seated distrust in the very foundation of the country’s economic system — the dollar.

Much of the anger is directed at the Federal Reserve, which controls the nation’s supply of money. Since the financial crisis, the Fed has pumped trillions of dollars into the economy to help avert what Chairman Ben S. Bernanke believed could have been the next Great Depression. Critics worry the Fed won’t ever stop.

Marshall believes that the result could resemble the Weimar Republic of Germany after World War I: a worthless currency, skyrocketing inflation and a crumbling government.

And those are only the problems that the Fed might create. Who knows what other threats may be lurking in the shadowy world of cyberattacks, Marshall said. The Fed acknowledged Tuesday that its computer systems were recently compromised, although the problems did not affect critical operations and have since been fixed.

“This is a lifeboat study; what happens if?” Marshall said.

READ THE FULL ARTICLE HERE...

You can voice your opinion about HJ 590 by contacting your Virginia Legislators. For their contact information, visit: http://conview.state.va.us/whosmy.nsf/main?openform

Tell your Delegate that this bill is about more than politics - it's about VIRGINIA, and saving the money of the citizens of this State!