Showing posts with label HB 3. Show all posts
Showing posts with label HB 3. 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, 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, March 8, 2011

Constitutional Tender Act Gets Georgia House Subcommittee Hearing!

On Monday, March 8, 2011, a hearing was held in the Georgia House Financial Institutions & Services Subcommittee (a Banks & Banking Committee subcommittee) on HB 3, the Constitutional Tender Act.

Testimony in favor of the bill was given by Rep. Bobby Franklin & Dr. Bill Greene, who authored the bill. There was no testimony in opposition to the bill given.



HB 3 would return the State of Georgia to adherence to the U.S. Constitution's legal tender provisions. Specifically, the U.S. Constitution declares in Article I, Section 10 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 a "tender in payment" (which means they cannot "make something an offer as payment") for any debts, which would include debts owed by and to the State. However Georgia, like EVERY State in the United States of America, HAS made some other "Thing" an offer as payment - they have by law declared that they will accept, and pay out, Federal Reserve Notes for any debts owed by or to them. Therefore, Georgia is in violation of Article I, Section 10 of the U.S. Constitution. Therefore, this bill would require Georgia to ONLY use gold and silver coins in payments to and by the State. Federal Reserve Notes could still be used by the people of the State in personal and business transactions, if they so choose; but with the introduction of competition with REAL money, FRNs will likely soon go the way of the dodo bird.

The witnesses testified and explained to the Members of this subcommittee the absolute requirement of the U.S. Constitution for the State of Georgia to ONLY use gold and silver coins in its transactions, and a dialogue was begun in the best MEANS by which this should be done. The legislators present (only 5 of 13 members showed) asked a good number of questions, many of which were already answered in the handouts they had been given in advance.

Rep. Franklin and Dr. Greene explained to the Members the need to return to fidelity to the Constitution quickly, in order to reap the greatest benefits from such an action. The likely complete devaluation of Federal Reserve Notes, and thus the need for Georgia to protect its citizens via returning to Constitutional Tender, was also explained.

No vote was taken at this hearing.

Further testimony by additional witnesses also followed, which will be uploaded as separate videos.

View the bill here.
Citizens of Georgia: Contact your State Representative here to ask they co-sponsor this bill!


Every American citizen TODAY needs to contact the Leaders of the Georgia House and ask them to support this bill -- CLICK HERE to take action NOW!

View last session's hearing & testimony here.

Saturday, March 5, 2011

RED ALERT! Committee Hearing & Vote MONDAY on HB3!

THIS IS A RED ALERT!

Hearing & Vote on Constitutional Tender Act THIS MONDAY MORNING!
WE NEED YOU THERE!


Last week we told you that the Constitutional Tender Act (HB 3) had been assigned to the Banks and Banking Committee's "Financial Institutions" subcommittee, "to have a hearing" on it. We then requested that you contact subcommittee Chairman Tom Weldon and ask him to hold a hearing on this bill right away.

IT WORKED! Rep. Weldon has called a hearing for THIS MONDAY MORNING (March 7), at 9:00 A.M. It's likely that a vote will be held on the bill at that time as well, deciding whether it will be sent up to the full Committee or not.

WE NEED TO PACK THAT HEARING ROOM WITH SUPPORTERS! If you want to testify for the bill, get there BEFORE 9am to sign up at the front. THEY NEED TO HEAR FROM ALL OF US -- and that includes YOU!

INFO YOU'LL NEED:
WHAT: Financial Institutions and Services Subcommittee Meeting
WHEN: Monday, March 07, 2011 9:00 AM-10:00 AM
WHERE: Coverdell Legislative Office Building (CLOB), Room 506
MAP:


View Larger Map

Tuesday, March 1, 2011

"Rallying for States’ Rights, G.O.P. Legislators Tell Washington to Go Away"

A NY Times article that doesn't cast Nullification in a bad light? Wait a minute, we aren't being charged with racism, or called neo-Confederates, or laughed at for believing in sound money and the Constitution? Maybe there's hope for America yet!

State legislatures, bolstered by the huge Republican freshman classes that were swept into power from New Hampshire to Montana last year, have intensified their attacks on federal authority in the name of states’ rights...

In Kentucky, the State Senate is expected to take up a bill this week declaring the state a “sanctuary” from meddling by the Environmental Protection Agency.

In Arizona, the State Senate approved a measure this month that would exempt all products made and consumed within its boundaries from federal interstate commerce laws.

The Montana Legislature is considering a bill that would allow the state to nullify federal laws that protect endangered species. And in Georgia, a bill that would override federal monetary regulations by requiring banks to accept payment in gold or silver has survived two readings in the State House of Representatives.

“There’s been a kind of ramping up,” said Michael Boldin, the founder of the Tenth Amendment Center, a research and advocacy group in Los Angeles. Last year, Mr. Boldin said, many of the bills were simply statements of dissatisfaction or intent. This year, he said, the bills are armed with teeth and recommended penalties. The Arizona bill, for instance, would make it a felony for anyone who tried to enforce federal commerce laws.

READ THE REST OF THE ARTICLE HERE...

Thursday, February 24, 2011

"Constitutional Tender Act assigned to Financial Institutions subcommittee"

TAKE ACTION TODAY!

On Tuesday, February 22, 2011, the Constitutional Tender Act (HB 3) was assigned to the Banks and Banking Committee's "Financial Institutions" subcommittee, "to have a hearing" (quote from committee Chairman Morris - see video below). Please contact subcommittee Chairman Tom Weldon and ask him to hold a hearing on this bill right away!

Email: tom.weldon@house.ga.gov
Phone: 404-656-0152
Fax: 706-965-4011
Address: 401 Coverdell Legislative Office Building, Atlanta, Georgia 30334

Tuesday, February 22, 2011

"Two more small Georgia banks fail"

This CAN be halted. Call your GA State Legislator today, tell them to PASS HB 3 and SB 116 - bills that will SAVE the banking industry in Georgia, and protect ALL of the people's money.


Two more Georgia banks were closed Friday, including one with offices in Flowery Branch and Canton.

Clarkesville-based Habersham Bank, founded in 1904 in the North Georgia mountains, was seized and sold to SCBT of Orangeburg, S.C., the Federal Deposit Insurance Corp. said.

Citizens Bank of Effingham in Springfield, near Savannah, was acquired by Albany's HeritageBank of the South.

Six banks have failed in Georgia so far this year. A nation-leading 57 banks have failed in Georgia since mid-2008.

Regulators appear to be stepping up the pace of failures to start 2011. Georgia didn’t reach six failures in 2010 until late March.

READ THE REST OF THE ARTICLE HERE...

Monday, February 7, 2011

Thursday, December 30, 2010

Radio Interview on Constitutional Tender

Here's an interview with Dr. Bill Greene about the Constitutional Tender Act on the Tim Bryant (and Martha Zoller, who he was subbing for) radio show, broadcast on 12/29/10. For more info: http://www.ConstitutionalTender.com/

Tuesday, December 28, 2010

Constitutional Tender for Georgia? 10th Amendment Center


Written by: Michael Boldin
posted on 12/27/10 at the Tenth Amendment Center Blog

The United States Constitution states, in Article I, Section 10, “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts.”

When was the last time your state followed this? For most living humans – never. In recent years, though, a number of states have seen Constitutional Tender Acts introduced with the goal of righting this wrong. Passage would nullify federal legal tender laws that prevent states from abiding by Article I, Section 10 of the Constitution.

In the 2011 legislative session, Georgia will consider House Bill 3 (HB3), which states, in part:

CONTINUE READING ARTICLE...

Thursday, December 23, 2010

Tenth Amendment Center: "A Date that Lives in Infamy"

We are incredibly grateful for the work of the Tenth Amendment Center in promoting the Constitutional Tender Act. On this dark day in history, they are graciously doing so again.
A Date that Lives in Infamy

EDITOR’S NOTE: On December 23, 1913, Woodrow Wilson signed the act creating the Federal Reserve System. Now that Ron Paul is in a place to bring some light to the true dealings of the fed, the time is ripe to end the fed. But, the best way to get back to a proper monetary policy will likely come from a place far from Washington, D.C. – your own state.

The following article, “Ending the Fed from the Bottom Up,” by Dr. William Greene, was originally published here at the Tenth Amendment Center on 04-11-10. We’re proud to present it here again on this sad, but historic anniversary – with hopes that you will take action today to push your state to consider the Constitutional Tender Act, and start the process of bringing the Federal Reserve System to it’s much-needed demise.

READ THE REST HERE...

Thursday, December 9, 2010

Contact Your GA Representative - "Cosponsor & Vote For the Constitutional Tender Act!"


Every citizen needs to contact their Representative in the Georgia House TODAY and ask him or her to support HB 3, the Constitutional Tender Act!

Find your legislator's contact information at http://www.legis.state.ga.us/legis/2009_10/house/alpha.html

It's best to call your State Representative and ask him to sign on as a co-sponsor. If they respond with something like, "I'll vote for it if it gets on the floor," just tell them, "It CAN'T get to the floor unless you co-sponsor it FIRST. So will you?" If you're writing a letter, a fax or an email, here is a sample letter that you can copy and paste, or modify yourself, to send to your State Representative (download a PDF copy here):
Rep. [FIRST NAME] [LAST NAME]
The Capital
Atlanta, GA

Dear Rep. [LAST NAME],

As your constituent, I'm contacting you to ask you to please co-sponsor, and vote for, HB 3, the Constitutional Tender Act.

We are in an economic CRISIS, and we need a Sound Money solution NOW — before it’s too late, and the dollar loses all of its value.

This type of bill is needed because, due to the ever-widening circle of economic disaster that is affecting the citizens of every State, we MUST do something to at least begin the process of restoring sound money and a sound economy, even if (and especially if) the current federal administration refuses to do so.

This bill is also needed because Georgia, like every other state, is in violation of the U.S. Constitution (Article 1, Section 10) without such a bill (because the State is making some other "Thing" a Tender in Payment of Debts, both to and by the State). As a state legislator, you swear an oath to uphold that Constitution, so ethically and morally you need to do whatever the Constitution requires.

Please, put the people of Georgia and their well-being above any partisanship or politics, and especially above any fears about your "reputation" with others. What is important is the welfare of the citizens of this state, and the need to abide by the U.S. Constitution.

PLEASE, co-sponsor HB 3, the "Constitutional Tender Act," TODAY and vote for the bill in committee and on the floor -- but DON'T wait until it gets to the floor; it can't get there unless you co-sponsor it! I will be watching your actions on this bill very closely, and will remember them on election day.

You can find more information on this bill at http://www.ConstitutionalTender.com/.

Thank you,

[YOUR NAME]
[ADDRESS]
[CITY], [STATE] [ZIP]
If we can literally overwhelm our legislators with emails, letters, faxes and phone calls, then we DO have a chance to restore our State to sound money, and sane Constitutional monetary policies! PLEASE TAKE ACTION TODAY!

Monday, December 6, 2010

How the ConTen Act can Return America to Sound Money

Ron Paul, in his paper "The Political and Economic Agenda for a Real Gold Standard" (originally delivered at the Mises Institute's 1985 conference on the gold standard), discusses the steps which the economist Ludwig von Mises laid out for us to be able to return to a sound currency (which was in his 1952 epilogue to "The Theory of Money and Credit").

What's particularly relevant about this discussion is that, where the attempts at the national level to implement these steps have been halting at best, the Constitutional Tender Act actually builds on what HAS been accomplished and uses it to implement those steps starting at the STATE level... where they actually have the chance to SUCCEED.

The first step we need to take, writes Paul, is "Gold Coinage":

The heart of Mises's proposal to restore gold to our monetary system is a gold coinage. He wrote,

Gold must be in the cash holdings of everyone. Everybody must see gold coins changing hands, must be used to having gold coins in his pockets, to receiving gold coins when he cashes his paycheck, and to spending gold coins when he buys in a store.[7]

In this one detail — the critical importance of the gold coinage — I believe lies the key to establishing a new gold standard.

We should make no mistake about it: the more progress we make toward reestablishing the gold standard, the more aggressive our opposition will become. Some vested interests, as you know, have a lot to lose if we succeed in getting the monetary system reconstructed on a gold basis. The first political step is, therefore, to get the coinage into circulation.

One objective might be to aim for every American to become a gold owner. We must encourage a broader base of political support for gold ownership and the availability of gold for personal economic objectives. Certainly a broader base of gold ownership in the country would help to reduce the threats of discriminatory taxation or regulation of gold ownership and gold coin transactions, which are seriously favored in Congress today.

Under the Constitutional Tender Act (a proposed State law which re-applies the U.S. Constitution's negative mandate in Article I, Section 10, that "No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts"), 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 (e.g., taxes, fees, contract payments, etc.). All contracts, tax bills, etc. would be required to be denominated in legal tender gold and silver U.S. coins, including Gold Eagles, Silver Eagles, and pre-1965 90% silver 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.

So, with the ConTen Act, the foundation is now laid. Dr. Paul goes on:

What we must first do is get the coinage into circulation, and then build the political base to lock the government's fiscal folly with golden handcuffs. People have always understood the tangible value of gold coins in circulation. They don't need to agree or even understand the fine points of monetary theory to own gold coins, trade gold coins, or use gold coins to satisfy part of their marginal-utility demand for cash balances.

Most people understand very little about economics or monetary theory. When they see supposed experts in disagreement, the status quo wins by default, because nobody with the power to change it has the courage of conviction. The majority of voters see the debate among experts and hesitate to support any leaders with comprehensive reform schemes. This is why all efforts to rebuild a gold monetary system have met with frustration and stalemate in the past.

And this is the beauty of the Constitutional Tender Act: instead of being a top-down, federal-level effort, it is a bottom-up, State-level effort, thus giving it a higher likelihood of eventual success (see my paper presented at the Mises Institute's Austrian Scholars Conference, "Ending the Federal Reserve From the Bottom Up: Re-introducing Competitive Currency by State Adherence to Article I, Section 10"). Upon going into effect, the ConTen Act would introduce currency competition with Federal Reserve Notes, by outlawing their use in transactions with the State. Ordinary citizens of the State, being required to pay their State taxes in gold and silver coins, would find it necessary to open bank accounts in those denominations. Businesses operating within the State, being required to pay their State sales taxes and license fees in gold and silver coins, would need to do the same; and in order to acquire such coins, they would begin to offer their goods and services in "dual currency" denominations, where customers could choose to pay in Federal Reserve Notes (which would still be necessary to pay Federal fees and taxes) or gold and silver coins (including checks and debit cards based on bank accounts denominated in such coins). Customers, having found the need to open such accounts in order to deal with the State, would be able to engage in commerce using those accounts.

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). (Gresham's law is stated as, "Where legal tender laws exist, bad money drives out good money." A reverse of this would be, "In the absence of legal tender laws, when people are given the free choice between using and accepting good money or using and accepting bad money, bad money becomes less popular than good money, and is driven out of the marketplace.") 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 citizens residing 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. At that point, the Federal Reserve system will have become unwanted and irrelevant, and can be easily abolished by the people's elected Representatives in Washington, D.C. -- and thus open the door for a return to sound money, nationwide.

All of this can take place because Dr. Paul helped bring about the minting once again of legal tender U.S. gold and silver coins, which can now be used to return every State to its Constitutional mandate for honest money. He recognized that this first step was a necessity: "There must certainly be no restrictions on the private production of coins, but I believe that getting the US Mint further into the act, producing a gold coinage with some of the mystique of the government, will be useful in the further political stages of monetary reform. Honest money, after all, is a political objective; it is fitting that people should demand honesty from their government, as well as an economic policy that permits individuals to compete honestly." Now, with the Constitutional Tender Act, that political objective is within reach.

Tuesday, November 16, 2010

Constitutional Tender Act RE-Introduced in Georgia!


The "Constitutional Tender Act" has been re-introduced in the Georgia House of Representatives by Rep. Bobby Franklin (R-43), a member of the Georgia House Banks & Banking Committee, for the 2011 Session of the Georgia Legislature. The bill number is HB 3.

It will take a strong dose of involvement from citizens across the country to get our States back on track using Constitutionally-mandated money, so we'll need YOUR help!

Every citizen TODAY needs to contact the Leaders of the Georgia House of Representatives and ask them to support this bill -- CLICK HERE to take action NOW!