Wednesday, February 1, 2012

Washington State May Make Your Money As Good As Gold By Making Gold & Silver Legal Tender

American Buffalo Gold Bullion Obverse and Reverse

Washington State Representative Matt Shea believes that paper money printed by the Federal Reserve amounts to confiscation of property without compensation. And, the Bill that he is co-sponsoring would authorize gold and silver use as legal tender in his state says as much. He believes that the Fed’s printing of paper money is unconstitutional. 
The bill’s basis is under Article I, Section 10 of the United States Constitution, which gives the states the power to enact gold and silver based legal tender laws, "no state shall . . .; make any thing but gold and silver
 Coin a Tender in Payment of Debts." No Amendment has changed this Constitutional dictate. 

Matt Shea, is one of four Washington State legislators sponsoring the bill to allow gold and silver to be legal tender in Washington state. If the bill becomes law, the state will join Utah as States where your money is as good as gold.

Here's the Bill: 

(If passed, this would also exempt the purchase of gold and silver from
all sales tax for its purchase)

H 3806.1

State of Washington 62nd Legislature 2012 Regular Session
By Representatives Condotta, Overstreet, Shea, and McCune
Read first time 01/27/12.  Referred to Committee on Ways & Means.
 1 AN ACT Relating to establishing the 2012 gold and silver legal

2 tender act of Washington state; adding a new chapter to Title 43 RCW;

3 and providing an effective date.


5 NEW SECTION.  Sec. 1.  FINDINGS AND INTENT.  (1) The legislature

6 finds that to secure property rights sound money is essential.  Gold

7 and silver currency retains earned wealth in the hands of the people

8 and has provided civil societies with a fair, honest, and reliable

9 medium of exchange for over six thousand years.  Competitive currencies

10 of gold and silver provide greater security to the people of Washington

11 state in protecting their property and other assets from paper currency

12 inflation.   The absence of gold and silver coin wrongly exposes the

13 citizens, businesses, and other residents of Washington state to the

14 chronic depreciation of the legal tender fiat paper federal reserve

15 note currency and significant losses in purchasing power which amount

16 to the incremental confiscation of private property without just

17 compensation.   The due process clause of the fifth Amendment to the

18 United States Constitution, and Article I, section 3 of the Washington

19 state Constitution, both ensure the protection of life, liberty, and

p. 1 HB 2731 1 property.  Only gold and silver may be recognized as government legal

2 tender under Article I, section 10 of the United States Constitution,

3 which gives the states the power to enact gold and silver based legal

 4 tender laws, "no state shall . . .; make any Thing but gold and silver

5 Coin a Tender in Payment of Debts." Private contracts are not limited

6 to legal tender as furthermore provided in Article I, section 10, "No

7 State shall . . .; pass any bill . . ., or Law impairing the Obligation

8 of Contracts."

 9 (2) It is the intent of the legislature that gold and silver used

10 as legal tender are treated in the same manner as United States

11 currency for taxation purposes.  The legislature intends to provide a

12 choice of United States constitutional currency of gold and silver and

13 does not intend to compel a person to tender or accept gold or silver.

14 In addition to the United States constitutional authority giving the

15 state's authority to make gold and silver legal tender, the United

16 States supreme court has held that congress lacks any constitutional

17 power to specify what the states must use as "legal tender" or media of

18 exchange in the exercise of their reserve sovereign function in the

19 following cases:  Lane County v. Oregon, 74 U.S. (7 Wall.) 71 (1869);

20 Hagar v. Reclamation District No. 198, 111 U.S. 701 (1884).

21 NEW SECTION.  Sec. 2.  SHORT TITLE. This chapter may be known and

22 cited as the gold and silver legal tender act of Washington state.

23 NEW SECTION.   Sec. 3.   MONETIZATION.   Pursuant to the monetary

24 authority expressly reserved to the states in Article I, section 10 of

25 the United States Constitution, the following is declared to be state

26 legal tender:

27 (1) Federal specie gold and silver coin at any time issued by the

28 general government of the United States of America;

29 (2) Domestic specie gold and silver coin; and

30 (3) Foreign specie gold and silver coin monetized by any other

31 state or country.


33 CURRENCY.   (1) The states are in violation of the United States

34 Constitution for failing to comply with national legal tender laws that

35 require gold or silver coin to be the only legal tender:

HB 2731 p. 2 1 (a) The general government has no constitutional authority to emit

2 bills of credit or to enact tender in payment of debt laws forcing the

3 use of fiat paper currency among the states;

4 (b) The power to determine legal tender is specifically given to

5 the states;

6 (c) The general government has failed to abide by Article I,

 7 section 8 of the United States Constitution:  "To coin Money, regulate

 8 the Value thereof and of foreign Coin, . . ." and provide market value

9 for gold and silver coins for circulation as currency among the states;

10 and

11 (d) The United States Constitution charges the states with ensuring

12 only gold and silver coin are legal tender within their borders per

13 Article I, section 10:  "No State shall . . . make any Thing but gold

14 and silver Coin a Tender in Payment of Debts."

15 (2) The state of Washington has determined to exercise its

16 constitutional authority and provide its citizens with gold and silver

17 coins as an alternative currency.  Originally, the exact weight of the

18 constitutional dollar was established in the coinage act of 1792 at

19 371.25 grains (troy) for fine silver; however, in order to implement an

20 alternative currency for today's markets:

21 (a) It is necessary for the state to establish a fair market value

22 for coins of gold and silver;

23 (b) The state of Washington must use the common standard of the

24 dollar as provided for in the U.S. Constitution; and

25 (c) The state treasurer must post daily the value of fine silver

26 and the proration to gold per the average closing prices of the New

27 York, London, and Hong Kong Metal Exchanges.


29 gold and silver is strictly voluntary and no person or entity may

30 compel any other person or entity to tender or accept state legal

31 tender.

32 (2) This act may not be used to impair contractual obligations and,

33 except in the case of governmentally assessed taxes, fees, duties,

34 imposts, dues, penalties or sanctions, neither the government nor any

35 of its branches, agencies, subdivisions, or instrumentalities may

36 compel payment in any particular form of legal tender inconsistent with

p. 3 HB 2731 1 the express written or verbal agreement of transacting parties, thereby

2 frustrating the parties' manifest intent and impairing their

 3 contractual obligations.

4 (3) In furtherance of the inherent rights of privacy and private

 5 property, the extent and composition of a person's monetary holdings,

 6 including those on deposit with any financial institution, are not

7 subject to disclosure, search, or seizure except upon strict adherence

 8 to due process safeguards, including but not limited to:

9 (a) Issuance of a lawful warrant or writ by a judicial officer

10 sitting in the county within which such holdings exist;

11 (b) Pursuant to an adequate showing of probable cause with respect

12 to the particular person or entity in question; and

13 (c) A warrant or writ being executed under the authority of the

14 duly elected sheriff of such county.


16 may be imposed on the sale, exchange, or other disposition of any gold

17 or silver coin, gold or silver metal, gold or silver token, gold or

18 silver bullion, gold or silver bars, or gold or silver ingots, whether

19 issued by the United States, a foreign government, or any other entity

20 or person.

21 (2) The state of Washington may not assess any tax or fee on any

22 currency, or any other monetary instrument, which is used in the

23 transaction of interstate commerce or commerce with a foreign country,

24 and which is subject to the enjoyment of legal tender status under

25 Article I, section 10 of the United States Constitution.

26 NEW SECTION.   Sec. 7.   A method of establishing the purity and

27 weight of gold and silver to be accepted by the state must be published

28 by the state treasurer based on the most recent fair market value of

29 gold and silver.

30 NEW SECTION.  Sec. 8.  This chapter only applies to taxes and fees

31 imposed on or after January 1, 2013.

32 NEW SECTION.  Sec. 9.  Sections 1 through 8 of this act constitute

33 a new chapter in Title 43 RCW.

HB 2731 p. 4 1 NEW SECTION.   Sec. 10. If any provision of this act or its

2 application to any person or circumstance is held invalid, the

3 remainder of the act or the application of the provision to other

4 persons or circumstances is not affected.

 5 NEW SECTION.  Sec. 11.  This act takes effect January 1, 2013.

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