Arizona is working towards becoming the second state, after Utah, to recognize gold and silver as legal tender authorized for payments of debts and taxes.
The Arizona Senate voted at the end of February 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). And today, the House Committee on Financial Institutions approved the bill by a vote of 4-2. It now goes to the House rules committee, which is the last step before going to the full State House for a debate and vote.
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.
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.
Passage of the Constitutional Tender Act would introduce currency competition with Federal Reserve Notes. Professor William Greene explains further:
“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State – as people in other States carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve Notes for any transactions.”
Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there.
Without a single act of Congress, the Federal Reserve system can be brought to its knees by passing such bills in states all over the country.
ACTION ITEMS for Arizona
1. Contact the House Rules Committee chair. Politely request that he schedule SB1439 for a debate and vote in his committee. And while you’re in touch with him, make sure to let him know – strongly, but respectfully – that you want him to vote YES on SB1439, sending the bill to the full state house.
Representative Bob Robson (602) 926-5549
2. Contact the rest of the members of the House rules committee. Strongly, but politely, let them know you want them to vote YES on SB1439. Remind them that you expect them to support the Constitution, and that includes Article 1, Section 10 which says that the state needs to allow gold and silver to be used as legal tender. SB1439 will help facilitate this constitutional duty and you want a YES vote.
2. Share this information widely. Please pass this along to your friends and family. Also share it with any and all grassroots groups you’re in contact with around the state. Please encourage them to email this information to their members and supporters.
LEGISLATION AND TRACKING
If you’re outside of Arizona, please contact your own legislators regarding Constitutional Tender legislation. If none has been introduced in your state, you can email them the model legislation:
Track the status of the Constitutional Tender Act in states around the country: