State Currencies - Going Back to The Pre-Civil War Era

Cohete Rojo · Feb 8, 2012

What is this? Is it real? State issued gold and silver back currencies? Surely this can't be conservative idea, it must be rooted in the deep pockets of the Tea Party and such hard core GOPers.

http://money.cnn.com/2012/02/03/pf/states_currencies/index.htm

States seek currencies made of silver and gold

NEW YORK (CNNMoney) -- A growing number of states are seeking shiny new currencies made of silver and gold.

Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

....

The state gold rush: Utah became the first state to introduce its own alternative currency when Governor Gary Herbert signed a bill into law last March that recognized gold and silver coins issued by the U.S. Mint as an acceptable form of payment. Under the law, the coins -- which include American Gold and Silver Eagles -- are treated the same as U.S. dollars for tax purposes, eliminating capital gains taxes.

...

Tea Party "father" Ron Paul is sponsoring the "Free Competition in Currency Act," which would allow states to introduce their own currencies, and rival Newt Gingrich is calling for a commission to look at how the country can get back to the gold standard.

...

There are, of course, many people who think the recent push for alternative state currencies should be stopped in its tracks. David Parsley, a professor of economics and finance at Vanderbilt University, said he thinks state-issued currencies are a "terrible" idea.

"Having 50 Feds" could debase the U.S. dollar and even potentially lead the country into default, he said. "The single currency in the United States is working just fine," said Parsley. "I have no idea why anyone would want to destroy something so successful -- unless they actually wanted to destroy the country."
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The Supreme Court case McCulloch v. Maryland initially established the national government's right to control currency, and now there are states wishing to challenge the postceding 200 years of history to go back to the gold standard?

Is this just another piece of fodder to add to the states' rights chants that are later to come?

F.D.R and Nixon must be rolling in their graves.

B-Bob · Feb 8, 2012

I for one would enjoy tracking the South Carolina "reb" and the South Dakota "bleak" versus the dollar. I'm sure their own economies will just be humming right along, independent of the largesse of federal funds they receive every year.

Why are the most crazy states the ones that receive more federal money than they produce in GDP?

Air Langhi · Feb 8, 2012

Keep the government;s hands off medicare.

rocketsjudoka · Feb 8, 2012

It sounds like theoretically they Constitutionally could use gold and silver coinage under Article 1 Section 10
"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."

If they did though it could only be in the form of gold and silver, so if MN were to switch to something like Loons which would be a serious impediment to an economy based on fiat currency. This wouldn't just be going to Pre Civil War but pre-paper money.

rocketsjudoka · Feb 8, 2012

B-Bob said: ↑

I for one would enjoy tracking the South Carolina "reb" and the South Dakota "bleak" versus the dollar. I'm sure their own economies will just be humming right along, independent of the largesse of federal funds they receive every year.
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I look forward to tracking MN Loons vs. WI Cheese wheels.

Anyway if this happened you wouldn't have to track the value of individual currencies since the individual states would be limited to only gold and silver with the value of each coin the actual value of the amount of gold and silver they contain.

bigtexxx · Feb 8, 2012

Deckard -- can you please shed some light on this from your childhood?

PREESH, BRAH

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State Currencies - Going Back to The Pre-Civil War Era

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