Gold and Silver Approved as Legal Tender by Arizona Senate

Arizona may become the second state, after Utah, to recognize gold and silver as legal tender authorized for payments of debts and taxes.

The Arizona Senate voted Thursday to approve SB 1439, the Constitutional Tender Act, which allows businesses and the state government to accept payments in gold or silver.  The vote was 17-11. (see how reps voted here)

The Legal Tender bill specifies that legal tender in Arizona consists of all of the following:

1. Legal Tender authorized by Congress.

2. Specie (containing gold or silver) coin issued at any time by the U.S. government.

3. Any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of state authority to make legal tender.

BACKGROUND INFORMATION

Currently all debts and taxes in Arizona and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” The Constitutional tender act is a big step towards that constitutional requirement which has been ignored for a long time in every state of the country. Such a tactic would achieve the desired goal of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the State and local level.

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