Texas Bill to Establish Bullion Depository, Make Gold and Silver Money Once More

Texas Bill to Establish Bullion Depository, Make Gold and Silver Money Once More

Texans could soon be allowed to pay with gold and silver coins minted by the federal government for taxes and other government services – namely, the American Silver Eagle and the American Gold Eagle – thanks to a bill proposed by Sen. Konni Burton, R-Colleyville.

Burton argues the option to pay in gold and silver for government services has caught on as the dollar’s purchasing power declines.

“Federal monetary polices, such as persistent deficit spending, lead Texans who save their money in U.S. dollars subject to long-term devaluation of that money,” Burton said at a Senate committee hearing Thursday.

Sen. Burton said the bill would not require individuals, businesses or even the state to accept the precious metals as currency.

“Today we can, and should, use monetary nullification to begin the process of rolling back thousands of federal mandates by demanding that our state legislators implement sound money and require the federal government to use it as a tender in payment of debts,” according to the Tenth Amendment Center, which is a friend to state’s rights initiatives.

There could be tax implications should the bill pass (which will likely happen in the future as opposed to this year), as gold and silver would then be considered money and not property.

A Republican legislator from Arizona, Mark Finchem, told the committee about his efforts for a similar bill in his state.

“The purchasing power of the average consumer has eroded dramatically because of the ill-advised decision to decouple our nation from the gold standard,” he said.

Burton has also co-authored a bill that would create a bullion depository in Texas for precious metals. A similar effort failed in 2013.

As the Tenth Amendment Center writes:

Currently, all debts and taxes in Texas must either get paid with Federal Reserve Notes (dollars), 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.

But 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 takes a step towards that constitutional requirement, ignored for decades in every state. Such a tactic would undermine the monopoly the Federal Reserve system by introducing competition into the monetary system.

Professor William Greene is an expert on constitutional tender and said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

 

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