Swordsmyth
08-05-2018, 08:37 PM
As of midnight on August 3, a new law went into effect in Arizona that that the state another leap forward toward recognizing gold and silver as money. The new statute does not replace the Federal Reserve notes, but it does put gold and silver on equal footing.
Introduced as House Bill 2013, the measure redefines the terms “legal tender” and “liquid capital” so as to allow trust companies in the Grand Canyon State to use either in calculating liquid capital.
Put simply, for trust companies in Arizona, liquid capital is defined now as “legal tender,” and “legal tender” is defined now as “a medium of exchange, including specie…for the payment of debt, public charges, taxes and dues.”
This is great news for trust companies in Arizona as state law requires that they maintain at least $500,000 in liquid capital in order to operate. As of August 3, those companies may now include gold and silver in their calculations of liquid capital.
The bill’s sponsor was Arizona state representative March Finchem of Tucson. Representative Finchem describes himself as a “constitutionalist,” and as “a man dedicated to serving God first, then the rights of man.”
Finchem seems to merit the moniker “constitutionalist” as the biography on his website notes that his favorite U.S. Supreme Court opinion is Norton v. Shelby Co. wherein the court declared, “An unconstitutional act is not law; it confers no rights; it imposes no duties; affords no protection; it creates no office; it is in legal contemplation, as inoperative as though it had never been passed.”
That’s a rare realization among lawmakers, state and federal. Finchem is to be complimented on his understanding of federalism and the Tenth Amendment.
Of his legislation, Finchem remarked:
This would fortify the capital asset reserve of trust companies in Arizona. Since the FDIC only insures up to $250,000 of personal deposits in an FDIC insured bank, and they can take up to 99 years to pay a claim under federal law, this move permits investors in trust companies to place hard assets on deposit as ready, liquid capital reserve without converting the real money to fiat currency and then digital currency as in a deposit in the ACH system.
Admittedly, HB 2013 does not replace the Federal Reserve notes and it does not properly place gold and silver in their constitutionally mandated position as the sole form of legal tender that the states may accept.
As stated above, a key provision of the bill redefines legal tender as “a medium of exchange, including specie… for the payment of debts, public charges, taxes and dues.”
That such a statement should be necessary is likewise ridiculous. Read another way, this part of the legislation is legalizing the Constitution in the state of Arizona!
Article 1, Section 10 of the U.S. Constitution very clearly mandates that, “No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts.”
More at: https://www.thenewamerican.com/economy/commentary/item/29711-new-arizona-law-moves-state-one-step-closer-to-sound-money
Finchem needs to run for higher office.
Introduced as House Bill 2013, the measure redefines the terms “legal tender” and “liquid capital” so as to allow trust companies in the Grand Canyon State to use either in calculating liquid capital.
Put simply, for trust companies in Arizona, liquid capital is defined now as “legal tender,” and “legal tender” is defined now as “a medium of exchange, including specie…for the payment of debt, public charges, taxes and dues.”
This is great news for trust companies in Arizona as state law requires that they maintain at least $500,000 in liquid capital in order to operate. As of August 3, those companies may now include gold and silver in their calculations of liquid capital.
The bill’s sponsor was Arizona state representative March Finchem of Tucson. Representative Finchem describes himself as a “constitutionalist,” and as “a man dedicated to serving God first, then the rights of man.”
Finchem seems to merit the moniker “constitutionalist” as the biography on his website notes that his favorite U.S. Supreme Court opinion is Norton v. Shelby Co. wherein the court declared, “An unconstitutional act is not law; it confers no rights; it imposes no duties; affords no protection; it creates no office; it is in legal contemplation, as inoperative as though it had never been passed.”
That’s a rare realization among lawmakers, state and federal. Finchem is to be complimented on his understanding of federalism and the Tenth Amendment.
Of his legislation, Finchem remarked:
This would fortify the capital asset reserve of trust companies in Arizona. Since the FDIC only insures up to $250,000 of personal deposits in an FDIC insured bank, and they can take up to 99 years to pay a claim under federal law, this move permits investors in trust companies to place hard assets on deposit as ready, liquid capital reserve without converting the real money to fiat currency and then digital currency as in a deposit in the ACH system.
Admittedly, HB 2013 does not replace the Federal Reserve notes and it does not properly place gold and silver in their constitutionally mandated position as the sole form of legal tender that the states may accept.
As stated above, a key provision of the bill redefines legal tender as “a medium of exchange, including specie… for the payment of debts, public charges, taxes and dues.”
That such a statement should be necessary is likewise ridiculous. Read another way, this part of the legislation is legalizing the Constitution in the state of Arizona!
Article 1, Section 10 of the U.S. Constitution very clearly mandates that, “No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts.”
More at: https://www.thenewamerican.com/economy/commentary/item/29711-new-arizona-law-moves-state-one-step-closer-to-sound-money
Finchem needs to run for higher office.