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Gold''s rise and dollar''s fall are actually accelerating, GoldMoney''sTurk reports
By James Turk, Editor
The Freemarket Gold amp; Money Report
Letter No. 339
February 9, 2004
Copyright 2004, The Freemarket Gold amp; Money Report
Republished by permission
New Hampshire made history this week. It is the first state
since President Roosevelt's gold confiscation in 1933 to
attempt the praiseworthy goal of returning to constitutional
money -- gold and silver coin. I am honored that I had a
small role to play in this laudable effort.
State Rep. Henry McElroy introduced HB 1342, which has
been dubbed the New Hampshire Sound Money Bill.This
bill enables people to transact with the state of New
Hampshire in terms of U.S.-minted gold and silver coin.
In other words, if this bill is passed and signed into law,
people will be given a choice.People who needs to
transact with state government can continue to transact
with it in terms of fiat currency -- Federal Reserve dollars.
Or they can demand that the state transact in gold and
silver coin, as provided in Article I, Section 10 of the
Constitution: quot;No State shall make any Thing but gold
and silver Coin a Tender in Payment of Debts.quot;
Therefore, those who need to pay money to the state (in
taxes, for example) and people who receive payments
from the state (such as employees, suppliers, and
contractors) could, under this bill, ask the state of New
Hampshire to pay to them U.S.-minted gold and silver
This bill would enable gold and silver coin to circulate
once again as currency, at least in regard to transactions
with the state.
The rate of exchange used in a transaction would depend
on the prevailing market rate of exchange between Federal
Reserve dollars and gold and silver at the time of the
transaction.The dollar face value stamped onto the gold or
silver coin (for example, the $50 quot;valuequot; stamped on a
U.S. gold eagle coin) would be ignored.The coin's value
in exchange for Federal Reserve dollars would be
determined solely by the weight of gold or silver in the
Though it is clear from the Constitution that the states may
use only gold and silver coin in the payment of their debts,
this provision is ignored. Federal Reserve fiat dollars are now
exclusively used by the states, which is being done in
obvious contravention to this constitutional requirement.
But until now there has been no way under New Hampshire
law to enforce the constitutional provision on the state.
In other words, this bill would remedy this deficiency in New
Hampshire state law, which is the bill's objective and purpose.
It would empower the people to force the state to deal in
Therefore, this bill not only is a step in the right direction not
only for constitutional money but also shows that people can
indeed require government to adhere to the law - assuming
of course that this bill is passed and signed into law.And
though the bill has supporters among the state
representatives, like all bills this one has to pass the New
Hampshire House and Senate as well as be signed into law
by the governor. So it is an uphill journey, but one worth taking.
This past Monday I participated in a press conference at the
state Capitol in Concord to explain the difference between fiat
Federal Reserve dollars and to announce my support for the
bill, which was drafted by my good friend, Edwin Vieira, who
is this country's leading scholar on legal and constitutional
money issues.I have written in these letters before about his
monumental book, quot;Pieces of Eight,quot; which I said quot;will
without any doubt stand throughout time as the definitive
account of the descent in the United States from the sound
money imparted by the Constitution to the unsound
debt-contract that is the inferior, unconstitutional unit of
account that today passes as the 'dollar'.quot;
Vieira has crafted a simple, straightforward bill. If you
would like to read more about it, the following link provides
an informative overview of it by answering 20 frequently
asked questions about the bill:
Perhaps if New Hampshire is successful in enacting this
bill into law, other states mindful and respectful of their
constitutional obligations may choose to enact similar
Of course, only time will tell how far and how fast this
legislation proceeds.For example, a vote scheduled for
this past Thursday has been delayed until the fall, mainly
technical reasons. But that delay may actually be a good
thing, because it gives more time to enable the legislators
behind this bill to campaign for it. I'll be campaigning for it
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