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

Arizona Senator Chester Crandell, along with Senator Kelli Ward and Representatives LivingstonBartonBorelliSeelKwasmanThorpeTownsendFarnsworth and Mitchell introduced SB1096, the Constitutional Tender Act. This allows businesses and the state government to accept payments in gold or silver. This is NOT a mandate, but will simply allow those that wish to exchange goods and services for gold or silver to do so, legally, without additional taxes and fees.

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

IN THE STATUTES AND LAWS OF THIS STATE, UNLESS THE CONTEXT OTHERWISE REQUIRES
“LEGAL TENDER” MEANS AN AUTHORIZED MEDIUM OF EXCHANGE FOR THE PAYMENT OF DEBTS AND TAXES. “SPECIE” MEANS COIN OR BULLION HAVING GOLD OR SILVER CONTENT.
LEGAL TENDER IN THIS STATE CONSISTS OF ALL OF THE FOLLOWING:

1.  LEGAL TENDER AUTHORIZED BY CONGRESS.

2.  SPECIE COIN ISSUED AT ANY TIME BY THE UNITED STATES 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 A LEGAL TENDER.

B.  EXCEPT AS EXPRESSLY PROVIDED BY CONTRACT, A PERSON MAY NOT COMPEL ANY OTHER PERSON TO TENDER OR ACCEPT SPECIE LEGAL TENDER.

Legal tender exchanges; payment of taxes

A.  NOTWITHSTANDING ANY OTHER LAW, THE EXCHANGE OF ONE FORM OF LEGAL TENDER FOR ANOTHER DOES NOT GIVE RISE TO LIABILITY FOR ANY TYPE OF TAX.

B.  LEGAL TENDER IS MONEY AND IS NOT SUBJECT TO TAXATION OR REGULATION AS PROPERTY OTHER THAN MONEY.

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.

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.

This bill has not been scheduled for a committee hearing yet, but it’s never too early to start taking steps to help get this legislation passed!

ACTION ITEMS for Arizona

1. Contact state representative. Strongly, but politely, let them know you want them to vote YES on SB1096. 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. SB1096 will help facilitate this constitutional duty and you want a YES vote.

Contact info here:
HOUSE CONTACT INFORMATION
SENATE CONTACT INFORMATION

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 HERE

Track the status of the Constitutional Tender Act in states around the country HERE

Follow our Arizona Facebook page HERE

Follow our National Facebook page HERE

 

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