Kent County Libertarian Party of Delaware

This is a discussion forum for the Kent County Libertarian Party of Delaware.

Register here to take full advantage of these forums.

    Gold, Silver and Fiat Currency

    Share

    rjswave

    Posts : 2
    Join date : 2010-11-09

    Gold, Silver and Fiat Currency

    Post by rjswave on Tue Nov 09, 2010 8:00 am

    I am frequently accused of zealotry in protecting our Constitution and the gold/silver monetary system that our country has strayed from, as well as my extreme desire to 'END THE FED'. I have put the following notes together in the hopes that someone can use this information to help put an end to our Fiat money.

    Lets start from the beginning and see what the Constitution says about money and the reasoning behind it.

    What was the object in enabling Congress to 'coin money and to regulate the value thereof and of foreign coin', and in restraining a State from coining money and from making 'anything but gold and silver current coin a legal tender in payment of debts'? It was to complement the power granted to Congress, 'to regulate commerce with foreign nations, among the several States, and with the Indian tribes'. The ability to regulate commerce wouldn't be worth anything if there were not a standard of value to protect the rights of creditors and ascertain the obligation of debtors.

    The recognized standard of the commercial world was, is, and will probably always be, gold and silver. Only those precious metals, coined and regulated in value by Congress, could any State use as legal tender in payment of debts or be used for foreign trade debts and commercial values. These metals were the standard of commercial values and was the only item recognized by the commercial nations of the earth to be the most convenient, the most enduring and the most exact.

    Those who ratified the provisions of the Constitution, set up the standard of gold and silver as the measure of value beacause they were educated with the historic knowledge of what happens to debts, contracts, currency and standards of value, when these metals were not used.

    These things being said, here are several of the references in which our Constitution uses the word "money.".........

    "The Congress shall have power....to coin money, regulate the value thereof and of foreign coin, and fix the standard of weights and measures."

    "To provide for the punishment of counterfeiting the securities and current coin of the United States."

    "To borrow money on the credit of the United States."

    "To raise and support armies; but no appropriations of money to that use shall be for a longer term than two years."

    "No money shall be drawn from the Treasury, but in consequence of appropriations made by law," etc.

    "Congress shall appropriate no money from the Treasury except by a vote of two-thirds of both Houses," etc.

    "All bills appropriating money shall specify in Federal currency the exact amount of each appropriation, and the purposes for which it shall be made," etc.

    "No State shall coin money; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, or ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility."

    .....None of these references, alone or in any combination, explicitly grants our Congress the power to print paper money or make it legal tender.

    In the Convention at Philadelphia, August 6, 1787, the 'Draft of a Constitution' was presented. The draft contained the following language:

    Art. 7, enumerating the powers of Congress, to wit: "To coin money: to regulate the value of foreign coin--to borrow money, and emit bills on the credit of the United States."

    Art. 13: No State, without the consent of the Legislature of the United States, shall emit, bills of credit, or make anything but SPECIE a tender in payment of debts," etc.

    Soon afterward the language was removed that gave the Congress power to make a paper currency, or to allow a State to use such a currency, made by any authority whatever, as a legal tender:

    "August 16.--It was moved and seconded to strike the words 'and emit bills,' out of the 8th clause of the first section of the 7th article--which passed in the affirmative"--nine states aye--two (New Jersey and Maryland) nay. Thus the clause read (as it now reads in the Constitution of the United States) "to borrow money on the credit," etc.

    The twelfth article of the "draft" provided as follows: "No State shall coin money nor grant letters of marque," etc.

    On August 28, "it was moved and seconded to insert the words 'nor emit bills of credit,' after the word 'money' in the twelfth article--which passed in the affirmative"--yeas, 8; nay, (Virginia) 1; divided, 1 (Maryland). "It was moved and seconded to insert the following clause after the last amendment: 'Nor make anything but gold and silver coin a tender in payment of debts;' which passed unanimously in the affirmative--eleven States being present."

    So now we have established the foundation: that deliberately, on specific motion, and by vote, the Convention denied to Congress the power to emit "bills of credit," or to authorize the States to make a paper issue a legal tender, and explicitly and rigidly confined the power of Congress to "coin money"--that is, to make specie, to render it current, at a regulated value, and the States to use that, and only that, as a legal tender.

    During the ratification debates, the Federalist Papers #44 discussed Article I, Section 10 of the Constitution which limits the powers of the states. Madison stated that "the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity." He further stated that the issuance of paper money has resulted in "an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice of the power which has been the instrument of it."

    The Coinage Act of April 2, 1792 set the values, descriptions, weights and measures of the coinage and the metals contained.

    Here are some reference materials on this topic......

    http://docsouth.unc.edu/imls/witherst/witherst.html
    http://www.constitution.org/uslaw/coinage1792.txt
    http://www.constitution.org/fed/federa44.htm
    http://en.wikipedia.org/wiki/Legal_Tender_Cases

    avatar
    Will McVay

    Posts : 186
    Join date : 2010-05-19
    Age : 32
    Location : Dover, DE

    Re: Gold, Silver and Fiat Currency

    Post by Will McVay on Tue Nov 09, 2010 8:09 pm

    Inflation's effects hurt everyone. It erodes the value of Social Security, unemployment, and pensions. It erodes the value of savings and annuities. It is a hidden tax on everyone holding US Dollars or US Dollar-denominated assets...

    Its effects also primarily affect food and fuel. This slows the economy as energy becomes more expensive at a time when the cost of food is making it more difficult to put food on the table. Good combination...


    _________________
    Will McVay
    Kent County Chair,
    Libertarian Party of Delaware.

    rjswave

    Posts : 2
    Join date : 2010-11-09

    Re: Gold, Silver and Fiat Currency

    Post by rjswave on Wed Nov 10, 2010 6:31 am

    Inflation always hits the poor the hardest. Their limited incomes can buy less goods, especially food and fuel which are the most important items for survival; these items also have the first and largest inflationary increases. As fiat money loses value, investors protect their assets by investing in hard and soft commodities such as oil, agricultural and metals like gold & silver. The effects of inflation are very visible in the commodities market at this time. Our founding fathers also knew the value of hard commodities and it is the reason they were specified for usage as our currency in the Constitution.

    This month, Jim Rogers, the guru of commodities, told university students to scrap career plans for Wall Street and the City and to study agriculture and mining instead. “The power is shifting again from the financial centers to the producers of real goods. The place to be is in commodities, raw materials, natural resources. Don’t go to Harvard Business School if you want to make fortunes..." This reinforces my view that Fiat currency is on its last leg.

    Sponsored content

    Re: Gold, Silver and Fiat Currency

    Post by Sponsored content


      Current date/time is Wed Jul 26, 2017 10:36 am