WorldNetDaily: Utah lawmakers recognize gold as legal tender
Bob Unruh of WorldNetDaily reports on the passage of the Legal Tender Act by the Utah Legislature:
Utah lawmakers today gave their final approval to a plan that recognizes gold and silver as legal tender in the state, and if signed by Gov. Gary Herbert, it would allow that standard for the first time in the United States in some three generations.
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H.B. 317, sponsored by Rep. Brad J. Galvez and Sen. Scott K. Jenkins, explains "this bill recognizes gold and silver coins that are issued by the federal government as legal tender in the state and exempts the exchange of the coins from certain types of state tax liability."
According to officials with the Utah branch of the Tenth Amendment Center, the bill is hoped to serve as "a first step" in the move by the state back to constitutional standards.
According to a report from Connor Boyack of the Utah center, "Article I, Section 10 of the U.S. Constitution states emphatically that 'no state shall make any thing but gold and silver coin a tender in payment of debts.'"
"Plainly put, this is the goal: to restore the Constitution's mandate of gold and silver as the only currency accepted in payment of debts by the states," he wrote.
At the Tenth Amendment Center was the explanation, "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 citizens residing 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."