Question about the Constitution and Gold and Silver standard

[restoreamerica]

Article 1 Section 10:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.


Does this mean the Federal Government must too make gold and silver the only tender in payment of debts?

Seems like it's just saying the States must do this, but I don't see anywhere that discusses what the federal government must do. I've been told that making the FRN legal tender is in violation of the Constitution because gold and silver should be the only currency in payment of debts.

I'm confused! Please help.

[constitutional]

http://www.ronpaulforums.com/showthread.php?t=140336&page=2#14

Good question, I've wondered about this too. But it doesn't change the fact that our current Monetary system is insane.

[restoreamerica]

Thanks for linking that post. I understand now.

And no, it doesn't change the fact that our monetary system needs serious reform. I agree with you on that one.

[mrsat_98]

Article 1 Section 10:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.


Does this mean the Federal Government must too make gold and silver the only tender in payment of debts?

Seems like it's just saying the States must do this, but I don't see anywhere that discusses what the federal government must do. I've been told that making the FRN legal tender is in violation of the Constitution because gold and silver should be the only currency in payment of debts.

I'm confused! Please help.


A little research into the term state is in order

http://dictionary.reference.com/browse/state

see also texas vs White 7 wall 700 , 743 i.e. definiton on Blacks LAw

[TrueFreedom]

It says "No state" at the beginning for a reason.

No this does not apply to the federal government, hence making paper fiat money constitutional.

[Chester Copperpot]

It says "No state" at the beginning for a reason.

No this does not apply to the federal government, hence making paper fiat money constitutional.

It also does NOT give the federal government the power to make fiat money.. Federal Govt only has the powers given to it by the Constitution.

Fiat Money is not constitutional.

[TrueFreedom]

It also does NOT give the federal government the power to make fiat money.. Federal Govt only has the powers given to it by the Constitution.

Fiat Money is not constitutional.


No you are mistaken. The constitution is full of negative rights. It is not there to take rights away. It says states cannot issue bills of credit. It does not lay that rule down on the federal government. Therefore they can use the necessary and proper clause to exercise their power, paper dollars are their way of doing so.

[sratiug]

No you are mistaken. The constitution is full of negative rights. It is not there to take rights away. It says states cannot issue bills of credit. It does not lay that rule down on the federal government. Therefore they can use the necessary and proper clause to exercise their power, paper dollars are their way of doing so.

The constitution clearly enumerates the powers of congress in article I section 8 and does not mention bills of credit. With the states being forbidden to use anything but gold and silver as legal tender no state resident would be required to take the fiat money for debts anyway even if the congress did have the power.

[fr33domfightr]

The Federal Government resides "within States," therefore NO STATE (or Federal Government) can create Bills Of Credit. When the Federal Reserve came into being, their "Notes" were backed by Gold or Silver. Later, that constitutional restriction was lifted, allowing the Federal Reserve to print Bills Of Credit, which is unconstitutional. Not only that, but only "Congress" can authorize the coining of money, they cannot reliquish that authority to the Federal Reserve, another reason the Federal Reserve (and the ACT) are unconstitutional.


FF

[Alawn]

The federal government was only granted the power "To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures"

Coining money does not authorize fiat money. It needs metal backing.


No you are mistaken. The constitution is full of negative rights. It is not there to take rights away. It says states cannot issue bills of credit. It does not lay that rule down on the federal government. Therefore they can use the necessary and proper clause to exercise their power, paper dollars are their way of doing so.

You are wrong. The federal government is only authorized to do the couple things it says they can do. All other things are reserved for the states or the people. And of course it is there to take rights away from the government. The purpose of the constitution is to limit the power of the government. The federal government can only do what the constitution enumerates. Anything it does not enumerate or specifically forbids it cannot do. States can do everything else except what they are forbidden from doing.

Watch this video from jbs. http://www.youtube.com/watch?v=5WrGPDUTD4I It goes into the constitution at about 6:40. The second half on the constitution and money continues here http://www.youtube.com/watch?v=vMUeUwlkQh4

Go to 1:15 here for what they say about the argument that it is ok since only states are specifically prohibited http://www.youtube.com/watch?v=HhMzxu-wBaw

[socialize_me]

The Federal Government can only COIN money (can you coin paper money??). Even let's say hypothetically the Federal Government can create fiat money...the states can only allow gold or silver legal tender. So if the Federal Government all of a sudden makes buffalo chips money, that's fine. The states cannot accept them because of Article I Section 10, so common sense implies that if states cannot make anything but gold/silver COIN legal tender in payment of debts, then what point is there that the Federal Government can create anything other than gold/silver?? If they did, they couldn't transact with it. They couldn't expect the public to either.

[fr33domfightr]

These 2 videos might help explain about the Gold and Silver standard. Reference the Coinage Act of 1792.


http://www.youtube.com/watch?v=1FiaUpeJxcA

http://www.youtube.com/watch?v=FbyQB8e-rQg&feature=related



FF