Arizonans who fear the federal government will make their folding money worthless may soon be able to substitute privately minted gold and silver coins.
The Senate Finance Committee on Wednesday took the first steps to making such coins legal tender in Arizona. SB 1439 would give them the same legal status as bills and coins authorized by Congress.
Nothing in the proposal by Sen. Chester Crandell, R-Heber, would force anyone to actually accept these coins as payment for any debt. Their use would be voluntary.
But proponents said it's only a matter of time before the country suffers hyperinflation, making the greenback worthless.
"We need to have a lifeboat for Arizona so we can construct Plan B,'' testified Miles Lester.
The measure is crafted to get around a provision of the U.S. Constitution which bars states from minting their own coins. But supporters also note it says that states cannot "make any thing but gold and silver coin a tender in payment of debts.''
That, they contend, permits states to recognize coins minted by others.
Crandell said the ultimate bottom line is a lack of confidence in the dollar -- or at least the real value of the dollar, what with the Federal Reserve Bank continuing to print new money.
"I think you can see that all over the country,'' he said. More to the point, he said countries like China are moving to have their own currencies recognized as an international standard "because the dollar doesn't do what it used to do.''
But Sen. Steve Farley, D-Tucson, questioned whether something else was at play. He said a similar Utah law adopted in 2011 was pushed by Old Glory Mint, a company that makes these gold and silver coins.
Beyond that, Farley said while the current financial system has its flaws, the country hasn't had the financial panics that occurred regularly in the 19th century.
"I don't see the need to go back to something that has proven to fail,'' he said.
But Sen. Bob Worsley, R-Mesa, said there may be reason to worry.
"We've never had this amount of debt as a country,'' he said. And Worsley said if people want the right to use silver and gold coins as legal tender, "I'm OK with that.''
Sen. Michele Reagan, R-Scottsdale, said she wasn't going to speculate on the soundness of the dollar. But she agreed to go along, saying, "I don't see where it could hurt, either.''
One thing the legislation would do is say that taxes incurred by people using these coins "shall be paid proportionately in the same legal tender.'' Crandell said that is designed to ensure that people are paying only what they owe, without fear of losing value based on some artificial exchange rate.
stimpy77 posted at 2:36 pm on Sun, Feb 24, 2013.
The authority to create legal tender is reserved by the U.S. Constitution to Congress. Not only a waste of time, but outright dangerous. An organization called NORFED tried this already and they ended up having all their currency confiscated by the FBI and Secret Service.
The consequences of U.S. debt is not hyperinflation but war, brought on by foreign nations intent to claim what has become rightfully theirs. Remember that song "This Land Is Your Land, This Land Is My Land"? The Chinese are singing that song about U.S. turf right about now.
Haddie Nuff posted at 3:01 pm on Sun, Feb 24, 2013.
I'm happy to see the legislature isn't wasting time on silly and unconstitutional bills anymore.
(s/o)
IceCat posted at 4:15 pm on Sun, Feb 24, 2013.
Maybe a high school class should take a field trip to the state capitol and introduce the United States Constitution to our GOP friends.
downtownresident posted at 6:11 pm on Sun, Feb 24, 2013.
Yes, and since we all pack heat in Arizona, nobody's going to rob us.
Well, not that way anyway. The politicians will take it all first because we can't shoot them for stealing from us.
Deddzone posted at 7:20 pm on Sun, Feb 24, 2013.
What the!?!
Is the Arizona GOP NEVER done providing material to the comics of the world?
We need to get these backward thinking, hysterical fools out of office. Soon.
KeitehE4 posted at 8:35 am on Mon, Feb 25, 2013.
Looks like the secessionists are at it again. They need to check the US Constitution as to who has the authority to coin money (Hint: It's not the states).
Article 1, Section 10 - Powers prohibited of States
1. 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.
valleynative posted at 8:50 am on Mon, Feb 25, 2013.
KeitehE4, while I don't support this legislation, I'm having a hard time understanding why you didn't read the words you posted:
"No State shall ... make anything but gold and silver coin a tender in payment of debt"
KeitehE4 posted at 10:13 am on Mon, Feb 25, 2013.
@valleynative - Good point. It's a Constitutional issue since that would preclude the use of paper money, something that has been legal since the Civil War. Further research is necessary.
But it still doesn't allow states to coin their own money. That point is clear.
Arizona Willie posted at 1:03 pm on Mon, Feb 25, 2013.
Where is the Democratic Party in Arizona?
Why don't they have recalls for all these insane Republican legislators going?
The Democrats are FAILING the people of Arizona.
They stand by mute while all these crazy proposals spew forth and some of them become laws and the Dems do NOTHING.
loose stool posted at 4:37 am on Tue, Feb 26, 2013.
Lets not forget about ammo, the other precious metal
Deddzone posted at 9:27 am on Tue, Feb 26, 2013.
Reading comments here and other places--I don't understand how these goofball GOPers get elected. From what I read/see very few are supportive of their rampant stupidity...
The Old Guy posted at 11:06 am on Fri, Mar 1, 2013.
If one would take the time to carefully read the article, and the US Constitution (Art1 Sec8 paragraph 5) they would see that it is perfectly legal for Arizona and other states to do as proposed. By all means let's have a lively discussion. Count me in. [wink]