Friday, April 1, 2011

Ron Paul Adds To Gold Standard Movement With New Bill

Inspired by the success of the Utah law, Ron Paul has introduced a new bill to Congress that will alter the federal legal-tender laws to allow states to make their own gold and silver coins. As of now, it has no co-sponsors and was referred to committee.
Given a short title of “Free Competition in Currency Act of 2011,” it has the dual goal “to repeal the legal tender laws, to prohibit taxation on certain coins and bullion and to repeal superfluous sections related to coinage.”

The bill would repeal section 5103 of title 31 of the U.S. Code, the heart of the legal tender provisions of American coin and currency law. The section says that “United States coins and currency (including Federal Reserve Notes” and other items, “are legal tender for all debts, public charges, taxes and dues,” and then goes on to declare that “Foreign gold or silver coins are not legal tender for debts.”

Paul says he is concerned with individual rights and thus the bill provides that “no tax may be imposed on (or with respect to the sale, exchange, or other disposition of) any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion, whether issued by a state, the United States, a foreign government, or any other person.”
There's also an interesting subsection that includes retroactive amnesty for anyone convicted under the provsions to be repealed. If the bill manages to pass, that amnesty would free Bernard von NotHous.

Sad to say, the lack of co-sponsors and referral to committee means the bill has next to no chance of passing. It's even a long-shot for a floor vote. Still, it's a test to see if a gold standard can be pushed.

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