North Carolina May Issue Gold Tender

Legislator says the state needs its own currency

BY MICHAEL BIESECKER - STAFF WRITER

RALEIGH -- Cautioning that the federal dollars in your wallet could soon be little more than green paper backed by broken promises, state Rep. Glen Bradley wants North Carolina to issue its own legal tender backed by silver and gold.

The Republican from Youngsville has introduced a bill that would establish a legislative commission to study his plan for a state currency. He is also drafting a second bill that would require state government to accept gold and silver coins as payment for taxes and fees.

If the state treasurer starts accepting precious metals as payment, Bradley said that could prod the private sector to follow suit - potentially allowing residents to trade gold for groceries.

Read more: http://www.newsobserver.com/2011/03/17/1059132/legislator-says-the-state-needs.html#ixzz1H5bBhNXJ

"To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;"

Article I, Section 8 of the Constitution of the United States

"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."

Article I, Section 10 of the Constitution of the United States



The Constitution is very specific about what our government can and cannot issue as coins and currency. It states what the Federal Government do as far supplying money as well as the States. It specifically says nothing but gold and silver coinage shall be used as payment for debt. That means not only are States allowed to issue gold and silver money for payments, it is the only thing it can issue and accept. This makes not current Dollar not only worthless as it is back up by nothing, it makes it unconstitutional.

The State of North Carolina has the right idea and other States should take lead. State's issuing their own currencies and coins, as well as private institutions, backed up by gold and silver is not without precedent in the United States. During the mid-1800s about 1,600 local state-chartered private banks where issuing paper money. It wasn't until the Civil War that the United States Federal Government would issue Treasury Notes that where non-interest bearing known as Demand Notes. In 1865 Gold Certificates where issued by the US Government backed up by gold bullion.

There is currently also various another forum of local and private currencies circulating in the United States. Nationally circulating was the Liberty Dollar until 2009 which was backed by Silver. The Local Exchange Trading System (LETS) is a mutual credit currency used by many small communities throughout the world. In Western Massachusetts a local volunteer currency called BerkShares can be purchased at 95 cents on the dollar from a few select regional banks. The BerkShares are accepted by over 70 non-profit companies in the area as equal face value to the US Dollar.

Now we have something that has not been done in years, a whole State wants to issue their own paper money backed up by gold and silver. State governments have not authorized this in a century. North Carolina is about to experiment with this and they within the law and history for doing so. As a matter of fact it makes good economic sense. History shows us that nations that live off of credit and currencies backed by nothing, will not survive for long. Empires have fallen due to inflation and being in debt, this was the case for Rome. Well history is repeating itself, we have a nation with high inflation and record levels of debt. States are in debt, local communities and major cities are facing budget issues, individuals and businesses are living off of credit, homes are being foreclosed and our Federal Government has a national debt in the trillions that is near impossible to pay off. We are in trouble and to make it worse, our Dollar is worthless. It gets weaker against the Euro, other currencies, gold and other precious metals every day. To stabilize the Dollar, to make it worth something, wouldn't it not make sense to back it up by something? Wouldn't you want to own and make purchases in a currency backed up by something real, something that could make the paper money actually hold its value? If you can't own or hold on to actual gold or silver the closest best thing to it would be a paper currency backed up by it. This is what the State of North Carolina wants to do for its Citizens, local businesses and tourists. North Carolina, if they actually do pass it, is on the right track and other States should take note.


- Mike Mazzeo, The Free World Blog