Skip to comments.Utah House Passes Bill Recognizing Gold, Silver as Legal Tender
Posted on 03/06/2011 1:34:02 PM PST by Tolerance Sucks Rocks
Utah took its first step Friday toward bringing back the gold standard when the state House passed a bill that would recognize gold and silver coins issued by the federal government as legal currency.
The House voted 47-26 in favor of the legislation that would also exempt the sale of gold from the state capital gains tax and calls for a committee to study alternative currencies for the state.
The legislation now heads to the state Senate, where a vote is expected next week.
Under the bill, the coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.
If the bill passes, Utah would become the first of 13 states that have proposed similar measures. The others states are Colorado, Georgia, Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont and Washington.
Backers of Utah's bill say they want to send a message to the rest of the country.
"People sense that in the era of quantitative easing and zero interest rates, something has gone haywire with our monetary policy," said Jeffrey Bell, policy director for the Washington-based American Principles in Action, which helped shape the bill.
"If one state recognizes gold as a valid currency, I think it would embolden people not just in other states but in Washington," he said.
The U.S. used the gold standard from 1873 until 1933, when President Franklin D. Roosevelt outlawed the private ownership of gold amid the Great Depression. President Richard Nixon abandoned the gold standard altogether when he announced in 1971 that the U.S. would no longer convert dollars to gold at a fixed value.
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Uh, oh, the bamster’s not gonna like this!
Currency is not my strong suit, but I’m just wondering...if I go to a store to buy something, and I can either trade my physical gold, or my federal reserve note representing the same nominal value, why on earth would I part with my gold?
I wonder how it will be valued. Gold has risen over $200 an ounce in the last ten months. It fluctuates daily and during the day.
Ha! Sure, when the price of gold doubles next week, know what you paid for that candy bar?
I’ll trade you a live chicken for that bag of hamburger buns.......
This news is good news because Utah are pushing for States rights here, and also making a point about the dollar. But - as you say - nobody’s going to give them any gold: I doubt they expect any.
I guess if you trade gold for something, then its more like barter than a currency.
How so? What right are they asserting that is in question?
well that’s just great.. can’t wait to to get my next 2 oz. psy check direct deposited.
Will state taxes be calculated on the face value of old coins?
If so, employees could receive and be taxed on an income of a mere $1000 per year (if paid in pre-1933 gold coins) or a relatively similar amount (if paid in pre-1964 silver coins).
You’ll probably be able to get more for gold than you would the paper.
So, I can either use a federal reserve note that says $50 on it, or my 1 oz US gold eagle coin that also says $50 on it? Hmm ... Which to spend?
Avoidance of Capital gains taxes
on the sale of the gold?
Already an anathema to me
as much of capital gains are actually inflation
not accrual of value
It would be weird to have a currency
that actually appreciated
Did you read the bit about Utah looking into a new currency?
Gresham's Law strikes again....
Art 1, Sec 10 of the Constitution clearly says states cannot coin money. Only the feds can do that. So what state right is involved? This seems like much ado about nada.
That’s what I’m saying.
In the future there may come a time where people will not sell you something for hyperinflated federal reserve notes.
At this time you wouldnt. But give it time and you might use that gold because paper will be absolutely worthless...more than what it is now.
What you say? You NUTS!
“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”
Tell me where the “F” do you see where they cant coin money?