Virginia may start minting its own gold and silver based currency

[CaliforniaMom]

http://voices.washingtonpost.com/virginiapolitics/2011/01/delegate_proposes_virginia_min.html

According to the bill being proposed by Virginia Del. Bob Marshall (R-Prince William):

"many widely recognized experts predict the inevitable destruction of the Federal Reserve System's currency through hyperinflation in the foreseeable future."

Do you think it'll pass, and does anyone know if the Federal government allows states to issue their own currency?

[Zippyjuan]

If it passes, the state will need millions of dollars to buy gold and silver with plus pay costs of minting and distribution. In their most recent budget they had to cut $7 billiion and may have to cut another $4 billion. http://www.thegovmonitor.com/world_news/united_states/virginia-announces-proposed-biennial-budget-for-2010-2012-19719.html Do they have the money to make money?

[tangent4ronpaul]

does anyone know if the Federal government allows states to issue their own currency?

I'm pretty sure the power to mint money is reserved for the Federal Gvmt only and that States are not allowed to do this. It should be in the Constitution under rights of states, article 1 section 8 is about the Federal Gvmt's right to do that. The part banning the States from the same should be later.

-t

[tangent4ronpaul]

Article I, 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.

-t

[JoshLowry]

Screw it. The federal government doesn't obey the constitution, why should the states?

Let's have some competition amongst currencies in the US.

[AGRP]

Screw it. The federal government doesn't obey the constitution, why should the states?



Never has such a simple and true statement ever been made.

[nobody's_hero]

I don't think it will pass on the first try. Georgia's didn't :( . Several states have attempted a sound money bill but it doesn't look like any of them have come close.

But we shouldn't give up though. State reps seem to be much easier to engage with than federal reps. Get the gears turning. Start making currency issues common during campaigns.

[cindy25]

what Virginia could do is require all payments to the state in gold or silver; make people buy silver to pay for state fees, tuitions, taxes. and require vendors to bill the state in silver/gold

[Bern]

what Virginia could do is require all payments to the state in gold or silver; make people buy silver to pay for state fees, tuitions, taxes. and require vendors to bill the state in silver/gold

+1776

[Chester Copperpot]

Screw it. The federal government doesn't obey the constitution, why should the states?

Let's have some competition amongst currencies in the US.

Yep... Exactly

[Chester Copperpot]

They can allow private individuals or companies to mint the money as well

[Koz]

The clause in the constitution is being broken right now anyway, they are allowing fiat money to be used as legal tender. It specifically states they are not allowed to do that. My argument would be to allow companies to mint gold and silver coins (they are not breaking the law) so they can comply with thier Constitutinal requirement to not allow debts to be paid in anything but gold and silver.

[TonySutton]

What would be the argument against making scrip that is redeemable in Gold/Silver from the state or FRNs? By using scrip it should be legal. Towns currently use scrip to keep money in the town.

[Krugerrand]

Article I, 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.

-t

The article title is misleading. Here's the meat of the resolution:

RESOLVED by the House of Delegates, the Senate concurring, That a joint subcommittee be appointed to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System.
http://lis.virginia.gov/cgi-bin/legp604.exe?111+ful+HJ557

It does nothing to say that the state will mint/coin anything - it's just forming a subcommittee to look at if some other currency should be adopted.

[Baptist]

Virginia (or any state) doesn't need to make gold and silver "money." They can simply mint "commemorative collector coins" with no money denomination on them. There you go. Problem solved. Commemorative gold and silver coins that weight 1oz and are certified by the state of Virginia to be 99% gold and silver.

[fisharmor]

Virginia (or any state) doesn't need to make gold and silver "money." They can simply mint "commemorative collector coins" with no money denomination on them. There you go. Problem solved. Commemorative gold and silver coins that weight 1oz and are certified by the state of Virginia to be 99% gold and silver.

Yes, but then the commonwealth would also need to nullify federal law criminalizing the use of such coins in daily transactions. Even if they pass the bill, I don't think they have the political capital to do that.

Side note: I like Bob Marshal, but, speaking strictly as a fellow religious whacko, he comes off as a religious whacko.

[Krugerrand]

Virginia (or any state) doesn't need to make gold and silver "money." They can simply mint "commemorative collector coins" with no money denomination on them. There you go. Problem solved. Commemorative gold and silver coins that weight 1oz and are certified by the state of Virginia to be 99% gold and silver.

Some legislation nixing capital gains tax on the exchange of precious metals and foreign currencies would be helpful, too.

[TonySutton]

Yes, but then the commonwealth would also need to nullify federal law criminalizing the use of such coins in daily transactions. Even if they pass the bill, I don't think they have the political capital to do that.



What federal laws? It would be covered under bartering. "I offer you 1 oz of silver, certified by the State of Virginia, in trade for that bag of groceries."

Edit: Personally I would love to see a cash register that would ring up my groceries in dollars but have a button to convert to ounces of silver/gold! How can we push this?

[cavalier973]

I like how they throw this in there: "Asked what he might say to people who believe the proposal is, well, a little wacky (after all, the last time Virginia used currency other than the U.S. dollar was during the Civil War)..." That's right, if Virginia coins its own money, it must want to go back to the days when its citizens could own slaves. Don't these people know that only the FedGov can own slaves?

[oyarde]

Article I, 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.

-t

True , but what if a private off shore company minted some things for the state to use ??

[Chester Copperpot]

True , but what if a private off shore company minted some things for the state to use ??

Thats fine.. a private company inside America could do it as well or a private citizen...

Originally, the only purpose of the federal govt minting coins was to put its 'good housekeeping seal' on it.. so that buyers and sellers knew it was real gold or silver.

[JustinTime]

Screw it. The federal government doesn't obey the constitution, why should the states?

Let's have some competition amongst currencies in the US.

Amen.

[fisharmor]

What federal laws? It would be covered under bartering. "I offer you 1 oz of silver, certified by the State of Virginia, in trade for that bag of groceries."

Yeah, let us know how that works out for you.
http://www.gata.org/node/7696

[muzzled dogg]

unconstitutional to mint its own money. nevada recently tried to open its own mint; ruled unconstitutional. can't coin money

but they can adopt money... and remember, no state shall make anything BUT gold and money.

state can use US or foreign gold and silver coinage or electronic gold money, for example...

therefore...

1. state requires under statute that certain taxes be paid with gold money
2. state spends gold money tax receipts on first-come-first-serve basis
3. recipients of the gold money see FRN's depreciating thus prefer gold to FRN's
4. pressure develops in state govt to pay out more expenditures using gold money
5. state requires all taxes be paid in gold money
6. tax payers seek their income in gold
7. state and private sector is out of unsound federal reserve system
8. pack your bags. state has boom economy

google edwin vieira

[MozoVote]

Yeah, let us know how that works out for you.
http://www.gata.org/node/7696

This case would have crumbled if he'd reported the payment in gold at FRN value though. It's not illegal to pay someone compensation in some other form than FRNs. It's the IRS reporting that must be in FRNs.

[TNforPaul45]

Article I, 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.


You Highlighted the wrong part. Here let me fix it for you

Article I, 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.


The states can make as much Gold and Silver money as they want. Only the Federalcrats can make Funny Money.

[MozoVote]

I would think the founders would have frowned on the payment warrants issued by California, under the "bills of credit" section.

[oyarde]

Thats fine.. a private company inside America could do it as well or a private citizen...

Originally, the only purpose of the federal govt minting coins was to put its 'good housekeeping seal' on it.. so that buyers and sellers knew it was real gold or silver.

I think for safety reasons , ( Fed Govt ) , it would be better for the company to be off shore to avoid being raided..

[oyarde]

You Highlighted the wrong part. Here let me fix it for you

Article I, 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.


The states can make as much Gold and Silver money as they want. Only the Federalcrats can make Funny Money.

Yeah , it is a shame I cannot declare myself a state and grant myself a letter of marque and reprisal : ). These guys were good , always one step ahead of me : )

[ghengis86]

IMO you're close, but not quite. I read it that the states can't coin their own money however only gold and silver are acceptable forms of debt payment. Ergo, FRNs are not suitable tender for debt payment.

The state doesn't need to coin anything; just make everyone settle debts in gold/silver.



You Highlighted the wrong part. Here let me fix it for you

Article I, 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.


The states can make as much Gold and Silver money as they want. Only the Federalcrats can make Funny Money.

[libertybrewcity]

getting these ideas flowing from legislators is a great start to begin with. kudos for virginia!

[Zippyjuan]

Just a question- would people be williing to pay higher taxes to help their state print gold or silver coins to be used in transaction(costs of buying the metal, paying minting, distributiion costs)?