Showing posts with label constitutional tender. Show all posts
Showing posts with label constitutional tender. Show all posts

Saturday, December 28, 2013

Objection: “This Note Is Legal Tender!”

(Crossposted from the Tenth Amendment Center's Constitutional Tender Blog)




In 2009, when Georgia Rep. Bobby Franklin introduced my first version of the Constitutional Tender Act (HB 430) in the Georgia House, we knew it wasn’t just going to be difficult to get passed into law — it was going to be difficult to get any co-sponsors, it was going to bee ord in the Senate…

In short, it was going to be difficult, all around. Why? Because the bill would actually return the State of Georgia to obedience to the U.S. Constitution… and we knew that almost every single legislator there was clueless about what the Constitution actually required, at least when it came to monetary policy.

So, when the bill (which did get one co-sponsor — Rep. Barry Loudermilk, who later won a seat in the State Senate and is now running for U.S. Congress) was assigned to the Banks and Banking Committee, we were happy. Not only was that the right committee, it was a good committee, for a number of reasons… not the least of which was, because the Chairman was a friend of mine for whom I had campaigned when I lived in his district.

I knew he was a staunch limited-government conservative. I knew he took his oath to the Constitution seriously. And I knew he would be willing to at least listen to why this bill was needed. So when I asked him to actually give the bill a chance, he said he’d “do what he could”. And he did — he assigned it to not one, but two subcommittees, and we set to work with a coalition of grassroots activists across the State to pressure at least one of those Chairmen to hold a hearing.

Honestly, we didn’t hold out much hope for that happening. It was late in the session, which made it more unlikely we’d see any action at all. So, when we suddenly got word that there would be a combined subcommittee hearing for the bill — and soon — we were very happy. We quickly organized our supporters, put together our supporting speakers, and made sure we had a great turnout for the hearing.

For me, one of the most interesting aspects of that first hearing was the questions and comments made by the legislators on the subcommittees (and by the speakers in opposition). That experience helped me to draft an improved version of the bill in the next session (HB 3 — since we didn’t get a vote after the first hearing), to cover areas that obviously needed revision. It also helped me to realize that I had actually underestimated the legislators’ lack of understanding of what the Constitution requires when it comes to “legal tender” in the States.

That point was driven home when another State Representative on the committee — again, someone I had dealt with a number of times in the past, whom I knew to be a pretty strong limited-government conservative who often spoke strongly in favor of strict constitutionalism — took out a dollar bill during the hearing, held it up, and asked me point-blank:

“This Federal Reserve Note printed by the United States of America… it’s stamped on here, it says that ‘This note is legal tender for all debts, public and private’… and it has the force of law, correct?”

First, I made a small correction in his statement — Federal Reserve Notes are only technically printed by the United States government (Bureau of Printing and Engraving); they’re printed for the Federal Reserve, which of course is not an agency of that government. Then I responded that yes, it is U.S. law that FRNs are legal tender for all debts, public and private; but I also reminded him that the U.S. government is under the U.S. Constitution, so any “law” that’s passed only has the force of law if it’s Constitutional. (He asked me if it has been found to be unconstitutional by any court, to which I replied, “Not yet.”)
The point which he was trying to make, in the limited amount of time we had, was that Congress had passed a law declaring Federal Reserve Notes to be “legal tender for all debts, public and private,” and so, he believed, States are required to obey that law and use FRNs for all debts owed by and to the State. Therefore, he claimed, the Constitutional Tender Act — which would force the State to once again not “make any Thing but gold and silver Coin a Tender in Payment of Debts”, as required by Article I, Section 10 — was unnecessary, since Georgia was in compliance with federal law.

But the point which I was trying to make in response, in the limited amount of time we had, was that since that section of the Constitution has never been amended in any way, the State was still required to only use gold and silver for all of its debts, regardless of anything that Congress may tell them to do to the contrary — because Congress cannot force States to disobey the Constitution. As noted in our FAQ,
“Laws passed by Congress, such as legal tender laws, cannot contradict the Constitution. Article I, Section 10 states very clearly: ‘No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts.’ Therefore, if any State accepts or pays with – in other words, “tenders” – any other ‘Thing’ (such as Federal Reserve Notes) except gold or silver coins, it is in violation of the Constitution. It’s that simple. 
Another thing to consider is that the U.S. Supreme Court itself has stated in Lane County v. Oregon, 74 US 71 (1868), ‘the general words “all debts” were not intended to be taken in a sense absolutely literal… the clause making the United States notes a legal tender for debts has no reference to taxes imposed by state authority, but relates only to debts in the ordinary sense of the word, arising out of simple contracts or contracts by specialty, which include judgments and recognizances.’ It also stated in Hagar v. Reclamation District No. 108, 111 U.S. 701 (1884), ‘The acts of Congress making the notes of the United States a legal tender do not apply to involuntary contributions in the nature of taxes or assessments exacted under state laws, but only to debts in the strict sense of the term; that is, to obligations founded on contracts, express or implied, for the payment of money.’”
Think of it this way: in the same section of the Constitution (Article I, Section 10), it states, “No State shall… coin Money”. Now, imagine that Congress, as a cost-cutting measure (I know, I’m dreaming here), decided to shut down the U.S. Mint, which coins all of our money (under Section 8). They realize that we all still need quarters, dimes, nickels and pennies, so they pass a law requiring every State to coin its own money.

Well, then, that means that every State would have to coin money, right? It’s the law!

Wrong. As I tried to explain to that State Representative, any “law” that’s passed by Congress only has the force of law if it’s Constitutional. Article VI, Paragraph 2 states, “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof… shall be the supreme Law of the Land.” So if a law is passed which is not made in pursuance of the clear words of the Constitution, than that “law” is not a “law” at all — as John Marshall, the first Chief Justice of the U.S. Supreme Court, said in Marbury v. Madison, 5 U.S. 137 (1803), “an act of the legislature, repugnant to the constitution, is void.” Justice Stephen Johnson Field, delivering the opinion of the court in Norton v. Shelby County, 118 U.S. 425 (1886), wrote, “An unconstitutional act is not a law; it confers no rights; it imposes no duties; it affords no protection; it creates no office; it is, in legal contemplation, as inoperative as though it had never been passed.” Alexander Hamilton, the first U.S. Secretary of the Treasury and the man whose face graces the ten-dollar bill, wrote in The Federalist No. 33, “acts of the large society [that is, the federal government -- WG] which are not pursuant to its constitutional powers… will be merely acts of usurpation, and will deserve to be treated as such.” And Thomas Jefferson, the principal author of the Declaration of Independence and the third President of the United States, stated emphatically in the Kentucky Resolutions of 1798, “Whensoever the General Government assumes undelegated powers, its acts are unauthoritative, void, and of no force.”

Therefore, if Congress passed a law requiring every State to coin its own money, that “law” would be in direct contradiction to Article I, Section 10: “No State shall… coin Money”; that “law” would not be made in pursuance of the clear words of the Constitution, which is required by Article VI, Paragraph 2; and so that “law” would be “void,” “unauthoritative,” an act of “usurpation,” “not a law,” and “inoperative as though it had never been passed.” In other words, every State would be Constitutionally required to NOT follow that “law,” and ONLY follow the clear instructions of the Constitution itself.

The same would hold true if Congress passed laws requiring States to enter into a Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; emit Bills of Credit; pass Bills of Attainder, ex post facto Laws, or Laws impairing the Obligation of Contracts; or grant Titles of Nobility — because every one of those things is clearly and expressly prohibited for the States in Article I, Section 10… just like coining money.

So then, what about that law, which says that Federal Reserve Notes are “legal tender for all debts, public and private”? Does it mean, as that Georgia legislator implied, that States are required to obey that law and use FRNs for all debts owed by and to the State? And does it mean, as he further implied, that the Constitutional Tender Act was unnecessary, since Georgia was in compliance with federal law?

Obviously, the answer is an emphatic NO. By following that law, like every other State in America, Georgia has made some other “Thing” a ”tender in payment” (that is, they have made something else an offer as payment); they have by law declared that they will accept, and pay out, Federal Reserve Notes for any debts owed to or by them. Therefore Georgia, like every State, is in violation of Article I, Section 10 of the U.S. Constitution. That is why there is a need for the “Constitutional Tender Act” — a bill template that can be introduced in every State legislature in the nation, returning each of them to adherence to the United States Constitution’s actual “legal tender” provisions.

Hey — why not join us, and take action in your State?

(By the way, “legal tender” laws, along with the Federal Reserve Act itself, very likely are unconstitutional, so States could probably “nullify” those laws as well; but that can be saved for another article.)

Saturday, October 26, 2013

Planning for AFTER the Federal Reserve's Inevitable Demise

There are several ways to "end the Fed", that is, to finally put an end to the fiscally destructive and economically immoral Federal Reserve System. There are top-down efforts, like Rep. Paul Broun's "End the Fed" and Sen. Rand Paul's "Audit the Fed" bills (both originally Rep. Ron Paul's bills); and there are bottom-up efforts, such as the Constitutional Tender Act. There is also the "long run" approach: due to the very nature of the Fed's destructive and immoral policies, it will eventually implode and collapse under the weight of its own inflationary fiat money system (perhaps a corollary to Keynes' reassurances that "in the long run, we're all dead").

Regardless of how it's accomplished, the eventual demise of the Federal Reserve is inevitable. The question for those who recognize that truth, then, must be: with what monetary system will we replace it? As Ron Paul has repeatedly been asked, "If we get rid of the Fed, what do we put in its place?"

While the most obvious short answer (which Rep. Paul often used) is "Nothing!", we really should discuss what ought to arise in place of the worthless Federal Reserve Notes that everyone uses now. In this article from a year ago, Doug Tjaden (Founder & Executive Director of the Christian Liberty Project) discusses the need for States to implement Constitutional tender laws now, in anticipation of the end of the Fed then.



So They Audit The Fed. Then What?
by Doug Tjaden

Let’s say for the moment that the Senate follows the House’s lead and calls for a full audit of the Federal Reserve. Let’s also dream that President Obama signs it. What are the consequences?

Rumors are, for decades the Federal Reserve has been engaged in the highest form of crony capitalism, big bank favoritism, purchase of politicians, nation building, and the bailout of foreign banks, corporations and governments.  If this is found to be true, it will add to the growing awareness of the Federal Reserve’s other nefarious activities. These include the fact the Fed and its debt-based fiat monetary system is confiscating the wealth of this nation and concentrating it in the hands of a few powerful interests. Not to mention the Fed’s money printing which enables the TSA, NSA, EPA, FDA, NEA, and USDA to unconstitutionally regulate our liberties into oblivion. Indeed, an audit could be the tipping point, generating enough public outcry to finally “end the Fed.”

It begs the question, “What’s next?”

The Federal Reserve Note is the officially recognized currency of the land, having long ago usurped the constitutional dollar as our monetary unit. The Federal Reserve system, like it or not, is responsible for insuring the flow of credit and currency around the nation and the world. Should the decision be made to end the Fed, it would take years to unwind its tentacles from the global economy and to replace Federal Reserve Notes with another currency.

As we call to “repeal and replace” the Federal Reserve System, it might be wise to think ahead and begin building that replacement system now. Unlike Obamacare, there isn’t an existing system which we can fall back on. All fifty states could nullify Obamacare tomorrow and there would be little impact on healthcare. End the Fed tomorrow, and like it or not, the global economy grinds to a halt.

The replacement monetary system that will insure the greatest long term protection of individual liberty is one built on limited regulation and sound money. The former must be dealt with at both the state and national level. The latter must be initiated by the states, and the states must maintain control over it. Centralizing monetary policy has been an abject disaster. The power it wields is too great for any one group of individuals or governmental authorities to handle. Without a broad set of checks and balances, it would fall into abusive hands again.

Seamless integration of a decentralized monetary system built on constitutional tender and controlled by the states is possible. It is what our founders intended. The first step is for states to pass sound money legislation, reinstating gold and silver coin as a tender in payment of debts. We had better begin building the replacement system soon. If you realize it or not, the unstoppable process to end the Fed is already underway as world markets prepare to reject the endless piles of debt-money the Fed is creating. And we are far from ready for it.

READ THE ORIGINAL ARTICLE HERE...

Saturday, October 12, 2013

Chinese Bank introduces gold and silver coin ATMs

One of the objections we often hear to the Constitutional Tender Act is that it would force the States and their citizens to "buy silver and gold coins" and carry them around in their pockets all of the time. The only way to believe this, is if you believe that you have to "buy Federal Reserve Notes" and carry around hundreds or thousands of dollars in order to buy groceries, pay car payments, pay mortgages, etc.

Of course, you don't. You can use your debit card to pay almost anything nowadays. Bank computer programs automatically compute debits and credits; they can even automatically convert the cost of items from foreign currency to domestic currency, based on whatever the current market exchange rate is.

That's exactly what can be done by the banks under the Constitutional Tender Act's conversion formulas, as this story about getting gold and silver coins from ATMs in China proves. The unfortunate part of this story is that it falls into the modern trap of thinking that exchanging one form of currency -- fiat printed money -- for another form of currency -- gold and silver coins -- is the same as "buying gold or silver coins". If you go into a bank and exchange four $5 Federal Reserve Notes for a $20 Federal Reserve Note, did you just "buy an FRN"?

Of course not. If you exchange $25USD (U.S. Dollar) for $1SAE (Silver American Eagle), you aren't buying a once-ounce silver coin, you're exchanging American legal tender currency. And all you're doing at these Chinese ATMs is exchanging ¥268CNY (Chinese Yuan) for ¥10SP (Chinese Silver Panda) or other denominations -- you're not buying one-ounce silver coins, etc.

Regardless, this story once more shows how the ConTen Act could easily be implemented.



People in Beijing can now buy gold or silver coins at ATMs after the Beijing-based Hua Xia Bank introduced five of the machines earlier this month, according to Hong Kong's We Wei Po.

The bank installed the five machines at its branches across the city in Xidan, Fangzhuang, Zhongguancun, Dongdan and on Qingnian Road.

The ATMs look like ordinary teller machines but have an additional compartment to dispense the gold and silver coins. The machines currently offer panda souvenir gold or silver coins and Year of the Snake silver coin and plate sets.

A single 1-oz panda silver coin priced at 268 yuan (US$40) is the cheapest item available, while the panda gold coin set is the most expensive at 23,800 yuan (US$3,800).

Buyers can purchase the coins using their bank cards. After they place their orders using the machine's touchscreen, their payments are verified through bank card organization China UnionPay and they can pick up their purchased items through the opening on the lower part of the machine.

If they want to purchase more than 20,000 yuan (US$3,200) worth of items, they will first need to place their ID cards on the machine's sensor to verify their identity before the order can be placed, Wen Wei Po said.

READ THE FULL ARTICLE HERE...

Tuesday, March 19, 2013

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

We noted earlier that Arizona has introduced a version of the Constitutional Tender Act (the "Legal Tender Act") which was advancing in the Senate; it passed there, and it's advancing now in the Arizona House.



Arizona lawmakers back gold, silver as currency

Arizona lawmakers say the global economy is on the precipice of financial ruin and the U.S. dollar could soon be worth less than the paper used to make it.

These doomsayers are pushing forward legislation that would declare privately minted gold and silver coins legal tender, no different under state law than the U.S. dollar printed by the federal Department of Treasury.

The measure is Arizona's latest jab at the federal government, which prohibits states from minting their own money. It also reflects a growing distrust of government-backed money.

"The public sees the value in it," said Republican Rep. Steve Smith, of Maricopa. "This is the type of currency we have had over the history of mankind."

The bill, which advanced in a 4-2 vote by a House committee Monday, states that gold and silver should be legal currency not subject to tax or regulation as property. The Republican-led Senate gave the bill its blessing in February in a 17-11 partisan vote.

The bill would let people use the precious metals as money as long as businesses agree to take them. If made law, it would take effect in 2014.

Democrats oppose the measure. They say it would be a bureaucratic nightmare because businesses don't have the equipment to determine the value of gold and silver.

"This should be addressed by the Federal Reserve and not by the state," said Democratic Rep. Rosanna Gabaldon, of Green Valley.

Keith Weiner, president of the Gold Standard Institute, which supports gold-backed currencies, said he envisions a system where people can pay for goods and services with debit and credit cards backed by gold and silver.

Paper money is a "recipe for worldwide bankruptcy," Weiner told Arizona lawmakers Monday. "Everybody is going bankrupt on this system so we need a sound and honest money system, such as gold and silver."

In 2011, Utah became the first state in the country to legalize gold and silver coins as currency. Lawmakers in Minnesota, North Carolina, Idaho, South Carolina, Colorado and other states have debated similar laws in recent years.

Many investors have invested their money in precious metals in recent years as a hedge against the declining value of the dollar. When the value of the dollar declines, gold prices rise.

Gold rose $12, nearly 1 percent, to $1,604.60 per ounce on Monday with news of Europe's bailout plan for cash-strapped Cyprus. Silver inched slightly higher, up 2.3 cents to $28.874 per ounce.

The dollar was up against the euro, the currency used by 17 European countries, as well as the Japanese yen and the Canadian dollar in February.

Proponents of the switch to gold and silver argue paper money is too vulnerable to government manipulations. When central banks boost the amount of currency in circulation to drive down interest rates, the value of that currency relative to others can decline.

"It's actually strange to me that we don't have this already," said Republican Rep. David Livingston, of Peoria.

Gold-backed money fell out of favor during World War I because the U.S. and many other countries needed to print more cash to pay for the war. In 1971, President Richard Nixon formally abandoned the gold standard.

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!

Saturday, February 23, 2013

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!



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!

Friday, February 8, 2013

Gold and Silver Legal Tender Law Introduced in Indiana

Posted by

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

Tuesday, August 7, 2012

Phase Out the Fed With State Sound Money Laws

Although it is very encouraging that the House voted 327 to 98 to audit the Fed last month, it is virtually certain that the Senate will not concur this year. Moreover, it is virtually certain that Congress will not act to end or phase out the Fed any time soon.

So, what's to be done about the impending destruction of our currency by the Federal Reserve's ongoing expansion of the money supply. Since 2010 there has been a continuation of this rapid expansion of the money supply.

The preeminent expert on Constitutional money, Edwin Vieira, has a strategy for phasing out the use of Federal Reserve Notes through new state laws providing alternative currencies, which he has been promoting via interviews and videos for the past several years.

Basically, Vieira advocates that states start taking advantage of their sovereignty as guaranteed by the Tenth Amendment and their constitutional mandate under Article I, Section 10 not to "make anything but gold and silver coin a tender in payment of debts," by passing laws providing alternative currencies in their states based on gold and silver.

A good way to understand Vieira's strategy is to view the video, "What Is Constitutional Money?", shown below, which consists of a lecture he gave last November in Washington, DC, sponsored by Congressman Ron Paul. Be sure to view all the way to the end of the question-and-answer period to get the whole story.



READ THE FULL ARTICLE HERE...

More States Support Move to Metals as Dollar Weakens

Investing in silver and gold has become more attractive since the US dollar just doesn't have the clout it once did.

Fears over where the dollar is headed – especially with continued money printing from the central bank – has pushed safety-seekers into investing in silver and gold. Demand has also pushed gold and silver prices to new highs.

The idea of using gold and silver as an alternative currency has spread as the metals have grown more valuable. In fact, worries that the US dollar is on the cusp of a collapse have lawmakers from more than a dozen states (up from just three in the past few years) seeking approval from their state governments to either issue their own alternative currency or use gold and silver as a currency for settlement of state-related transactions.

Rep. Glen Bradley, R-N.C., who introduced a currency bill in 2011, told CNN Money, "In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System... the state's governmental finances and private economy will be thrown into chaos."

Fourteen States & Counting

While the US Constitution bans states from printing their own paper money or issuing their own currency, it does permit states to make "gold and silver Coin a Tender in Payment of Debts."

The first state to introduce its own alternative currency was Utah. Gov. Gary Herbert signed a bill into law in March that recognized gold and silver coins issued by the US Mint as an acceptable form of payment.

Under the law, the coins, which include the hugely popular American Gold and Silver Eagles, are treated the same as the US dollar for tax purposes, eliminating capital gains taxes. The new law allows the coins to be exchanged at their market value, based on weight and fineness.

Rich Danker, a project director at the Washington, D.C.-based conservative public policy American Principles Project, explained to CNN Money, "A Utah citizen, for example, could contract to sell his car for 10-one ounce gold coins (roughly $17,000), or an independent contractor could arrange to be compensated in gold coins."

These other states have similar policies:

READ THE FULL ARTICLE HERE...

Monday, August 6, 2012

End the Fed! Whether Congress Wants us to or Not! (@TenthAmendment Center #nullification)

Today was a big day for supporters of Sound Money – as Ron Paul’s Audit the Fed Bill passed the House 326-99. But, it still needs to get through a very hostile Senate, where it will likely never see the light of day. So in closing tonight, a new approach – Ending the Fed. Whether Congress Wants us to or Not!

Since its inception, the Federal Reserve’s monetary policies have led to a decline of over 95% in the purchasing power of the U.S. dollar. As a result, there have been several attempts to reduce or even eliminate the Federal Reserve’s powers...

... Not to say that you should want a secret national bank, but rather – is this kind of activism the best place for you to put your energy…and hope? Will lobbying the Senate get Harry Reid to allow a vote? Will calling Mitch McConnell change anything? Will Barack Obama or Mitt Romney allow such a bill to pass without their veto?

I believe the answer to all these questions is a big, fat NO.

PULLING THE RUG OUT

On the other hand, in contrast to attempts to put a stop to the Fed at the national level, a paper that William Greene presented at the Mises Institute’s “Austrian Scholars Conference” proposes an alternative approach to ending the Federal Reserve’s monopoly on money. The “Constitutional Tender Act” is a bill template that can be introduced in every State legislature in the nation. Passage would return each of them to the Constitution’s “legal tender” provisions of Article I, Section 10:

“No State Shall…make any Thing but gold and silver Coin a Tender in Payment of Debts”

Such a tactic would achieve the desired goal of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the State and local level...

Tenth Amendment Center podcast:

READ THE FULL ARTICLE HERE...

Saturday, September 10, 2011

Question to ask at Candidate Forum for Bobby Franklin's seat - @politicalinsidr http://bit.ly/qFG7c8

On Monday, Sept. 12th, there will be a Candidates Forum in the Special Election race for the seat which was left vacant by the untimely death of the late Rep. Bobby Franklin.

Rep. Franklin, you will recall, was the lead sponsor of HB 3, the Constitutional Tender Act (along with many, many other excellent bills).

One of the panelists who will be questioning the candidates is a writer for the Atlanta Journal Constitution, Jim Galloway. Now, Galloway has asked his readers to make suggestions for what questions he should ask them.

Here's my suggestion, posted on his wall at the AJC:

Here's a question that's actually relevant to the office they're running for, AND the particular Member's seat they're looking to fill:

If you are elected, you will be required to swear before God this constitutionally-required Oath of Office: "I do hereby solemnly swear or affirm that I will support the Constitution of this state and of the United States, and on all questions and measures which may come before me, I will so conduct myself, as will, in my judgment, be most conducive to the interests and prosperity of this state."

Since you will be oath-bound to support the U.S. Constitution, as well as the prosperity of the State of Georgia; and since the U.S. Constitution, in Article I, Section 10, mandates that each State use ONLY gold and silver coins in all of its financial transactions; and since the federally-forced use of over-inflated Federal Reserve Notes has destroyed over 95% of the wealth of the citizens of the State of Georgia:

Will you pledge right now to sponsor the late Rep. Bobby Franklin's bill, HB 3, the "Constitutional Tender Act," which would return the State of Georgia to adherence to the United States Constitution's actual legal tender provisions and increase the State's prosperity?

I believe that economically, this is the most important question that could be asked at such a forum, because economically, there is no greater threat to the future prosperity of the State of Georgia and its citizens -- indeed, to the citizens of every single State in the nation -- than the Federal Reserve's destruction of their wealth through its over-inflation of unconstitutional fiat currency.

If you agree, and would like to support the passage of the Constitutional Tender Act in Georgia, please contact Jim Galloway to let him know that you would also like to see this question asked:

Email: jgalloway@ajc.com
Twitter: @politicalinsidr
Web: Political Insider with Jim Galloway

Thanks for your support!

Thursday, August 18, 2011

"The Constitutional Tender Movement in Georgia"

by William Greene, Ph.D.
ConstitutionalTender.com




In early 2009, I was teaching a course on American Government at Gainesville State College here in Georgia. As I was going over with my students the powers prohibited of the States in Article I, Section 10 of the U.S. Constitution, we hit upon this one: “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts”.

A student in the back of the room raised his hand, and asked, “What does Georgia use for paying its debts – money owed to the State, and by the State?”

“Federal Reserve Notes,” I replied.

“Not gold or silver coins?” he asked.

“No, not gold or silver coins. And no, Federal Reserve Notes are not backed by gold or silver coins, either.”

He raised his hand again. “Which States DO use gold and silver coins for paying State debts?”

“None of them,” I answered. “They all use Federal Reserve Notes, which were declared to be ‘legal tender’ by the U.S. Congress.”

“When did we pass a Constitutional Amendment to change this requirement in Article I, Section 10?” He had a puzzled look on his face.

My answer seemed to puzzle him even more. “We didn’t.”

It was quiet in the classroom at that point. I waited. I didn’t have to wait for long.

“How have the States gotten away with that?”

I didn’t have an answer to that question. And it bothered me...

READ THE FULL ARTICLE HERE...

Tuesday, August 2, 2011

"The Clock Is Ticking"

By Doug Tjaden, Director
Sound Money Center


Believe it or not, there is actually something good that came out of the dog-and-pony show over our debt ceiling. Even though Washington chose to do exactly what we knew they would – kick the can down the road – the debate has brought some facts about our nation’s financial condition into the open.

Fact #1 – we are broke. While tens of millions of Americans still believe that money from government programs can and should continue to flow without consequence, millions more are discovering that if our insane policy of deficit spending continues, it will end badly.

Fact #2 – we are on the clock. While this fact is not yet widely understood, people are awakening to the reality that because we are broke, we have a limited amount of time to truly change our ways – very limited.

The bill Congress passed provides us with a timeline showing when the U.S. dollar crisis will come to a head. This long anticipated event will happen as the United States government approaches its new debt ceiling limit of $16.7 trillion.

If you think the drama surrounding raising the limit was extreme this time, you haven’t seen anything yet. Expectations have been solidly set that by the time it comes up again, Congress will have put in place measures to once and for all, solve our fiscal problems by getting spending under control.

That is not going to happen.

Projections are already being made that the $16.7 trillion limit will be reached in 1Q13. However, Washington D.C. is notorious for making projections that are too rosy. Furthermore, our economy is rapidly moving into a “double dip” recession. That means revenues will soften as expenditures (unemployment, food stamps, etc.) continue to rise.

If the double-dip is severe, it is possible that we could reach the debt limit well ahead of schedule - near next year’s Presidential election. Consider what that means. A bitterly divided (and economically ignorant) Congress would be fighting for re-election during a full blown sovereign debt crisis. Gridlock of the most extreme nature would paralyze Washington when bold, decisive action is warranted. Not a pretty picture. Even if this scenario does not materialize, 1Q13 is only 18 months from now.

The clock is ticking people. This is it. Understanding this, each and every one of you should be moved to get involved to enact sound money laws in your state. It will be your best and possibly only protection from what is coming. You should also get serious about accumulating some sound money of your own.

Eighteen months max. The 2012 state legislative session may be your last chance to enact constitutional tender laws in time to implement them prior to some very challenging economic times. Encourage legislators and sound money proponents from your state to attend the national Sound Money Summit, scheduled for September 26th and 27th in Deer Valley, Utah. Sound money legislation will be crafted and acted upon. Details will be posted at the Sound Money Center when released!

Tuesday, July 26, 2011

GA Rep. Bobby Franklin Dies: Introduced ConTen Act

My friend, Georgia Rep. Bobby Franklin, has passed away.

This man was a giant -- in faith, in intellect, in fidelity, in so much more. We came to be friends as we worked on the Constitutional Tender Act together -- and I learned that if a majority of State legislators would only vote the Constitutional and Biblical way he voted, our State -- and probably our country -- could be turned away from the coming destruction.

I know that Bobby is in the presence of Jesus now, and rejoicing forevermore. He exemplified Philippians 1:21: "For me to live is Christ, and to die is gain." Have a glorious Home-going, Bobby. I will miss you -- I'm sitting here crying as I type this -- but I will share your joy in full one day.

And I would be remiss in Bobby's eyes if I didn't ask YOU, the person reading this, two simple questions: Have you come to the place in YOUR spiritual life where YOU know for *certain* that if you were to die today, you'd go to heaven? And if you *were* to die today -- as Bobby can testify, it can happen to young and old -- and you were to stand before God, and He were to say to you, "WHY should I let you into my heaven"... What would you say?

Bobby answered the first question with a resounding YES (1 John 5:13) -- and he answered the second question with a resounding, "Because I'm trusting in JESUS CHRIST ALONE for eternal life." (John 14:6) And Jesus has now answered back to Bobby: "Well done, good and faithful servant... Enter into the joy of your Lord" (Matt. 25:21).

READ MORE HERE...

Monday, July 11, 2011

"Competing currencies: a defense against profligate spending"

By Rep. Ron Paul (R-Texas)
The Hill - 07/11/11


... Currency is sound only when it is recognized and accepted as such by individuals, through the actions of the market, without coercion. Throughout history, gold and silver have been the two commodities that have most fully satisfied the requirements of sound money. This is why people around the world are flocking once again to gold and silver as a store of value to replace their rapidly depreciating paper currencies. Even central banks have come to their senses and have begun to stock up on gold once again.

But in our country today, attempting to use gold and silver as money is severely punished, regardless of the fact that it is the only constitutionally-allowed legal tender!

... This is why I have taken steps to restore the constitutional monetary system envisioned and practiced by our Founding Fathers. I recently introduced HR 1098, the Free Competition in Currency Act. This bill eliminates three of the major obstacles to the circulation of sound money: federal legal tender laws that force acceptance of Federal Reserve Notes; "counterfeiting" laws that serve no purpose other than to ban the creation of private commodity currencies; and tax laws that penalize the use of gold and silver coins as money. During this Congress I hope to hold hearings on this bill in order to highlight the importance of returning to a sound monetary system.

Allowing market participants to choose a sound currency will ensure that individuals' needs are met, rather than the needs of the government. Restoring sound money will restrict the ability of the government to reduce the citizenry's purchasing power and burden future generations with debt. Unlike the current system which benefits the Fed and its banking cartel, all Americans are better off with a sound currency.

READ THE FULL ARTICLE HERE...

Monday, July 4, 2011

Gold ATMs Hit Great Britain

If you look back, I've written several times (for example, here and here) about the coming of ATMs that exchange paper fiat money for actual gold. This is just a precursor -- a taste -- of what I'm always talking about: modern banking based on sound money. Well, those gold ATMs, which started in Abu Dhabi and then came to Boca Raton, Florida, have arrived on the shores of Great Britain as well.

(I encourage you to read my full comments on this issue here, where I expound in more depth.)

Why is this significant? Because, as I've talked about repeatedly, this is just a "taste" of the modern specie-based banking we can look forward to, if we implement ideas like the Constitutional Tender Act. But that's why this idea is key: the more we get used to the notion of gold and silver being money, the sooner we'll finally return to sound money that holds its value -- and the sooner we can save our trashed economy.

Don't try snacking on these bars: The vending machine that sells gold not chocolate
Shoppers can pick up a 1g coin for roughly £40 or a 250g bar for £10,250
By Daily Mail Reporter


If you think chocolate bars are a little overpriced these days, then this isn't the vending machine for you.

For the only bars you can get here are made of pure gold and will set you back somewhat more than 70p.

Britain's first gold vending machine 'Gold to Go' will open today in the Westfield shopping centre in west London...

...There are no security guards protecting the machine, but would-be thieves would still have to contend with reinforced steel and a state-of-the-art alarm system.

'It would cost you a great deal more to get the gold out than the value of the gold inside,' Joe Dreixler, of Oriente Lux, said.

READ THE FULL ARTICLE HERE...

Friday, July 1, 2011

"Rethinking Utah's monetary policy"

THIS is what I told the Georgia legislators in our hearing before them, that if Georgia would be the FIRST State to implement Constitutional Tender, our banks would stop failing, and our economy would benefit by BILLIONS of dollars: "With aggressive plans underway to open local depositories, the private sector has been quick to respond to the first monetization of a gold and silver coin by a state in more than a century. Essentially, these new institutions will afford citizens an effective way to "inflation proof" their dollars by making their everyday purchases with a debit card backed by the fair market value of their gold and silver coin holdings."

We see how well Georgia legislators responded. But maybe NOW they'll listen?

"Rethinking Utah's monetary policy"
By Larry Hilton and Rich Danker
Deseret News (Salt Lake City)
Friday, July 1, 2011

...Until our currency returns to safe harbor reconnecting with a reliable, proven anchor, we'll likely remain adrift in a monetary system that produces rising prices, financial disorder and runaway government spending.

Ronald Reagan once observed, "I do not want to go back to the past; I want to go back to the past way of facing the future." In that spirit, Utah has charted a way forward based on time-tested, proven principles. During the recent general legislative session, the Utah Legal Tender Act passed both chambers and was signed into law by Governor Herbert.

The bill essentially restores the hard money options enjoyed by generations past. American greatness rose on the strength of a dollar that was "as good as gold," and if our nation ever sinks, it will likely come in the wake of the dollar's demise.

The new Utah law derives its legal authority from Article I, Section 10, of the U.S. Constitution, which provides that no state shall "make anything but gold and silver coin a tender in payment of debts." This largely neglected constitutional check can, when actually exercised by the States, foster an important balance between concurrent state and federal monetary authority.

Our current paper money maelstrom has set in motion what Politico recently called a "surge of national interest" in gold-backed monetary reform. Others speak of the "currency revolution," which some have dubbed the "Utah Spring," with more than a dozen states considering a new, promising season of Utah-style monetary reform. ..

READ THE FULL ARTICLE HERE...

Thursday, June 16, 2011

The Practical Implementation of Constitutional Tender

by Doug Tjaden
TenthAmendmentCenter.com

Get ready. It’s coming.

Now it gets interesting. For several months I have been writing on the issue of honest money and its return to America, via the states. Judging from the response (or lack thereof), the issue is still very much off of the radar of the average American, including many hard asset advocates. Honest money is, however, quietly – and quickly – making its way into the main stream discussion...

...Let me go out on a limb and say those famous last words… “This time it is different.”

1) The United States is moving toward a debt/currency crisis of immense magnitude.

2) The American people are becoming increasingly aware of it, thanks to the tireless work of the above mentioned heroes.

3) There are two new variables that make this latest iteration of the decades long sound/honest money debate different...

...Larry Hilton was instrumental in helping nurture Utah’s law through to its ultimate passage. When I asked what the most important issue was facing Utah’s sound money initiative, he did not hesitate. “We need as many legislators as possible in as many states as possible to pick up the torch. Implementation of a simple bill in multiple states will strengthen support for sound money across the nation.”

To that end, he is planning a Sound Money Summit to be held in Deer Valley, Utah on September 26th and 27th. The purpose of the summit is to craft a “declaration of principles” that various states can agree upon regarding sound money. “The declaration will then form the foundation for model legislation.” stated Mr. Hilton. “If the summit can accomplish those two objectives – agreement on a declaration and model legislation – will put state legislators in good shape going into 2012.”

Here’s to the Sound Money Summit. Mark your calenders. September 26th and 27th promise to be the next quantum leap forward as the states move to return to honest money.

READ THE FULL ARTICLE HERE...

Friday, June 10, 2011

Edwin Vieira Interview with James Turk

James Turk interviews Edwin Vieira, author of "Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution". For more info visit http://www.goldmoney.com/goldmoney-foundation/books.html



Edwin talks about how his book came to be and the new editions. Edwin explains the role that the gold commission hearings and Ron Paul played. He also says how important and urgent monetary reform is for the United States and how the best chance of reform comes at the state level.

They discuss constitutional money in the USA and the authority of states to use gold and silver as legal tender, as well as legal precedent from the Supreme Court. He talks about how several states are contemplating legislation to allow gold and silver as alternative currencies.

Edwin explains the Treasury's legal obligation to maintain parity between all forms of US currency, about Roosevelt's gold seizure, the gold reserve act and the abolition of the gold clause. They talk about the need for insurance against a currency collapse and how alternative currencies could play that role. They discuss the stark choice that follows a currency collapse: How the US reacted after the collapse of the Continental Dollar by enshrining sound money in the Constitution vs. how Weimar Germany drifted into fascism.

He explains how States have the legal duty and authority to carry out monetary reform and given the deadlock in Washington must take the initiative to prepare for the coming crisis. They stress the need for a rational currency system which allows for economic calculation, and decry the current fiat, politically driven, irrational monetary system as incompatible with a free market and a focus of financial instability.

They both talk Turk about the current lack of financial education, they liken the alternative currency initiatives by State legislatures to building lifeboats for the Titanic that is the US Dollar and talk about the different things that can be done to prepare for its impending sinking. They also return to the Continental Dollar and how America's founding fathers were able to learn from their mistakes by enshrining sound money in the Constitution and how with today's technology we could do even better.

CLICK FOR ORIGINAL YOUTUBE SITE...

Utah Sound Money Bill Rocks World

I TOLD GEORGIA LEGISLATORS THAT THIS WOULD HAPPEN IF THEY DIDN'T PASS OUR BILL FIRST! "Issac Jacobson, a fund manager, says that based on conversations he has had with other fund managers, he expects billions of dollars to come into Utah to take advantage of the new law. He explains that funds will store their assets in Utah and believes that over time, the average Utahan will see a financial benefit from these billions of dollars being located and managed within the state."

Utah Sound Money Bill Rocks World
By: Carlton Bowen
Featured Liberty News Radio Columnist
Salt Lake City, Utah. June 2, 2011



Today Utah Governor Gary Herbert signed the Utah Legal Tender Act of 2011 (HB 317) in the Gold Room of the Utah State Capitol in a formal signing ceremony. In a room full of cameras, reporters, fund managers, businessmen, and prominent legislators, HB317 sponsor Brad Galvez, a Utah House Freshman, took to the podium and explained the effect of the bill. Representative Galvez recalled that when the bill was first passed in March, the local media took very little notice. There were a few stories he says, and that was about it. But the rest of the world took note. Galvez mentioned being contacted by reporters from around the world and listed media coverage in New York, London, Germany, other parts of Europe, Asia, Australia, and other parts of the world. Galvez says the legislation is historic...

The formal signing ceremony demonstrated commitment from Utah's highest levels of government to the bill. Utah Governor Gary Herbert said he and the legislature sometimes disagree, but that this was an issue they both agreed was important for Utahans. Before signing the bill, the Governor noted that Utah had been recognized as one of the best managed states, the most financially sound state, and one of the best states to live in. He said that was because of the fiscally conservative principles he and the legislature shared and because of the culture of the people of Utah. Governor Herbert then proceeded with the formal signing of the bill, reviewing publicly what the bill did, saying that it recognized Gold and Silver coins issued by the U.S. government as legal tender in the State of Utah, and removed taxes, including capital gains, sales and income taxes, on the coins. He then signed the bill. Even though the bill was previously signed by the governor and went into effect on May 10th, 2011, the formal signing ceremony today highlighted the importance of the bill and the State's commitment to its continued implementation...
READ THE FULL ARTICLE HERE...

Wednesday, March 30, 2011

Montana: "Gold standard defeated after lively House debate"

We came very close - just 52-48 - to getting another sound money bill passed, this time in Montana. Interesting approach: It would have required all taxes on cigarettes and tobacco products be paid in precious metals. Well, it's certainly a start.

HELENA — The House narrowly defeated a bill Tuesday that would have required the state to back some of its transactions with gold and silver coins.

House Bill 513, by Rep. Bob Wagner, R-Harrison, would have established a state reserve of silver and/or gold in various forms to accommodate transactions using the tobacco tax revenue stream. Wagner said the bill would have required Montana state government to trade with some taxpayers and contractors in units of gold, starting with those who pay taxes on tobacco products.

Wagner said the bill would protect "honest money" from "political manipulation and value."

"To return to this system of honest value, former Federal Reserve Chairman Allen Greenspan suggested that a system would need to be developed to operate in a dual currency," Wagner said during floor debate on the measure.

Supporters say the new currency exchange would be "separate and parallel" to the traditional exchange of federal notes...

...The plan failed on a 52-48 vote, as 20 Republicans joined 32 Democrats in opposing the measure.

READ THE FULL ARTICLE HERE...

View the bill here.