State considers return to gold, silver dollars
Proposed bill slams Fed, allows payments in precious metals
Posted: March 16, 2009
10:39 pm Eastern
By Drew Zahn
© 2009 WorldNetDaily
A bill being considered in the Montana Legislature blasts the Federal Reserve's role in America's money policy and permits the state to conduct business in gold and silver instead of the Fed's legal tender notes.
Montana H.B. 639, sponsored by State Rep. Bob Wagner, R-Harrison, doesn't require the state or citizens to conduct business in gold or silver, but it does require the state to calculate certain transactions in both the current legal tender system and in an electronic gold currency. It further mandates that the state must accept payments in gold or silver for various fees and purchases.
While Wagner was unavailable for comment, the bill's language clearly alleges the nation's current financial system, with its reliance on the private Federal Reserve system for money supply, is a danger to American freedom.
"The absence of gold and silver coin, whether in that form or in the form of an electronic gold currency, as media of exchange," the bill states, "abridges, infringes on and interferes with the sovereignty and independence of this state … and exposes this state and Montana citizens, inhabitants and businesses to chronic problems and potentially serious crises that may arise from the economic and political instability of the present domestic and international systems of coinage, currency, banking and credit."
Further, the bill states, relying only on the depreciating legal tender issued by the Fed subjects citizens to "losses in purchasing power" inflicted by the government, a dilemma the bill says amounts to the "incremental confiscation" of property by government in violation of the U.S. Constitution's protections for just compensation and due process.
The Fifth Amendment states, "No person shall be … deprived of life, liberty or property, without due process of law; nor shall private property be taken for public use, without just compensation."
Critics of the current financial system argue that using Federal Reserve notes as legal tender, rather than gold- or silver-backed currency, means the value of Americans' money – and thus their "property" – is siphoned away by inflation, a process perpetuated by the government's reliance on legal tender. Gold and silver, critics say, don't lose their value on the whims of the Federal Reserve.
U.S. Rep. Ron Paul, R-Texas, even favors abolishing the Fed's system of fiat currency to return to dollars backed by gold.
"Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar," the Texas Republican said. "Since 1913 the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve's loose monetary policy.
"How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation," he said.
Wagner joins legislators in several other states encouraging their respective governments to reconsider accepting gold as a form of payment. Indiana's S.B. 453, Colorado's H.B. 09-1206, Missouri's H.B. 0561, Georgia's H.B. 430 and Maryland's H.J.R. 5 are among the gold currency bills introduced just this year in various legislatures.
Montana's H.B. 639 has been referred to the Legislature's State Administration Committee.
March 22, 2009
Montana's Sound Money Bill
Posted by Karen DeCoster at March 22, 2009 05:10 PM
I heard from a member of Bob Wagner's family - the state rep who introduced the sound money bill in Montana. He writes: "There were no opponents. I was told this morning (trying to verify now) that the bill passed the house on a unanimous vote. The concept is being promoted as an "insurance" policy against dollar devaluation." Indeed, here's the YouTube of the hearings. I posted Part 10 because it has Wagner's closing statements and it verifies that there was no opposition to the bill.
Also, reader A.B. Daba tipped me off to this: the Georgia Constitutional Tender Act, which would would "require the use of gold and silver coin for the repayment of debts to the state, notably all state taxes (oh, thanks!). It would also mandate that any bank conducting business with the state accept gold and silver coins as deposits."
These actions on the part of individual states should give us optimism. Citizens of Montana, Georgia, etc., are tired of the central planning, corporatism, and totalitarian decrees on the part of D.C. and New York. They have had enough of these far-away, centralizing egomaniacs trying to run their states, their lives. As I always say - Guns, Gold, Secession.
For a primer on secession I recommend Secessionist Paper No. 19 by Don Livingston. In fact, the American Secessionist Project website contains many great articles, including some from our own LRC authors like Block, DiLorenzo, Woods, and Pierce. Also see the Mises Institute book, Secession, Sate, and Liberty.