Tell Congress: Restore Sound Money, Repeal Legal Tender Laws

For several months the Federal Reserve had been buying hundreds of billions of dollars worth of debt from the U.S. Treasury. The Government-Central Bank relationship has allowed our lawmakers to continue in their practice of reckless deficit spending which only results in a further devalued dollar. Actions such as raising the debt ceiling (which the government has done almost 80 times since 1962) and Quantitative Easing -- the Fed's practice of creating money out of thin air!

What we need is sound money and it looks like our dollar is qualifying less and less. Precious metals -- namely, gold and silver -- have historically been the commodities most capable of being sound money. This is why many governments have traditionally backed their currencies with such, including our own – in fact, the only legal tender authorized by the U.S. Constitution is gold and silver!

However, the use of gold, silver, and other forms of money in market dealings is prohibited today in the United States due to legal tender laws that force the use of Federal Reserve Notes. Such laws give the federal government a currency monopoly under which you and I must live – for good or ill. 

As a response, Rep. Ron Paul (R-Tx) – now a Presidential Candidate – has introduced H.R. 1098 – also called the Free Competition in Currency Act of 2011 – “to repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.”i

More specifically, H.R. 1098 will remove the obstacles that prevent the circulation of sound money in the United States: federal legal tender laws that force the use of Federal Reserve Notes; “counterfeiting” laws that serve no purpose other than to ban the creation of private commodity currencies; and tax laws that penalize the use of gold and silver coins as money.ii

Rep. Paul warns: “[G]overnment monopoly on the issuance of money is purely a method of central control over the economy. If you can be forced to accept the government’s increasingly devalued dollar, there is no limit to how far the government will go to debauch the currency. Anyone who attempts to create a market based currency – meaning a currency with real value as determined by markets – threatens to embarrass the federal government and expose the folly of our fiat monetary system. So the government destroys competition through its usual tools of arrest, confiscation, and incarceration.”iii

It’s time to support the circulation of sound money through lawful, free market currency competition! We must tell Congress to 1) give Rep. Paul the floor to explain H.R. 1098, and 2) support and pass H.R. 1098!

Notes:
i H.R. 1098
ii, iii Competing Currencies – a Defense Against Profligate Government Spending (Ron Paul)

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