By doing this, as I explained in a recent article, precious metal coinage could return, because the State would be required to only use gold and silver coins (or their equivalents, such as checks or electronic transfers) for payments of any debt owed by or to the State. All contracts, tax bills, etc. would be required to be denominated in legal tender gold and silver U.S. coins. All State-chartered banks, as well as any other bank that is a depository for State funds, would be required to offer accounts denominated in those types of gold and silver coins, and to keep such accounts segregated from other types of accounts such as Federal Reserve Notes.
The State would use gold and silver coins as money; the public and businesses would start using gold and silver as money, in addition to Federal Reserve Notes; and the use of sound money would return to America, one State at a time.
But with all of that said, one of the most interesting things to come out in the subcommittee hearing that the ConTen Act received here in Georgia, was the idea in those legislators' heads that gold and silver simply could not be USED as money, PERIOD. We heard comments like these:
- "Where would the State keep all of its gold and silver coins?" (Answer: Where does the State keep all of its Federal Reserve Notes? In a BANK, of course - just like they would under this Act.)
- "How would people be able to carry around all of those heavy gold and silver coins?" (Answer: How do they carry tens of thousands of dollars in Federal Reserve Notes around? They DON'T - they carry checkbooks and debit cards - just like they would under this Act.)
- "How would people buy things at the grocery store?" (Answer: How do people buy things at the grocery store now? With physical cash, or with a check, or with a debit card, or with a credit card - just like they would under this Act.)
Which brings me to the reason for this post: 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 talking about here: modern banking based on sound money. Well, those gold ATMs have arrived on our shores:
Boca Raton mall unveils ATM that dispenses goldLike I said, 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.
By Frank Cerabino
Palm Beach Post Staff Writer
Thursday, Dec. 16, 2010
At 10 a.m. today, the Town Center Mall in Boca Raton will unveil a vending machine that dispenses gold bullion. That's right: You put in your money or your credit card, and you get wafer-thin gold bars or coins from the machine...
The gold ATM is made by a German company called Gold on the Go, which had its first machine operational in Abu Dhabi this year, and has had its gold vending machines operating in Germany, Italy and Spain. The one in Boca Raton will be the company's first in America.