H.R. 1098, the Free Competition in Currency Act

FreedomWorks urges us to support H.R. 1098, introduced by none other than Presidential hopefull Ron Paul:

Dear FreedomWorks member,

As one of our million-plus FreedomWorks members nationwide, I urge you to contact your representative and ask him or her to cosponsor H.R. 1098, the Free Competition in Currency Act of 2011. Introduced by Rep. Ron Paul (R-TX), the bill would repeal federal legal tender laws and tax laws that penalize the use of gold and silver coins as money. The Free Competition in Currency Act would help restore sound money by allowing Americans to choose a currency among competing currency that works best for them.

Article 1, Section 10 of the Constitution clears states that “No State shall … coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts.” Unfortunately, Congress passed unconstitutional lender tender laws in 1965 which force Americans to use Federal Reserve Notes issued by the Federal Reserve. These legal tender laws have granted the central bank a monopoly on currency. This is problematic since the Federal Reserve has significantly devalued the currency that we are forced to use.

Americans should be free to use whatever currency they desire. The Free Competition in Currency Act would make it legal to use commodity money in personal economic transactions. Choice is good because it allows for currency competition. The paper dollar would have to compete with other forms of currency. The prospect of Americans using alternative currencies would encourage the Federal Reserve to stop inflating the money supply.

People must be free to use a currency that they trust. This is the first step to restoring sound money in America. I urge you to contact your representative and ask him or her to cosponsor H.R. 1098, the Free Competition in Currency Act today.

Sincerely,

Matt Kibbe
President and CEO
FreedomWorks
[Click here to see a PDF version of this letter.]

This has no hope of passing, but I think it’s very interesting none the less.

The Congressional Research Service, a nonpartisan arm of the Library of Congress, wrote the following summary:

3/15/2011–Introduced.

Free Competition in Currency Act of 2011- Repeals the federal law establishing U.S. coins, currency, and reserve notes as legal tender for all debts, public charges, taxes, and dues. Prohibits any tax on any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion issued by a state, the United States, a foreign government, or any other person. Prohibits states from assessing any tax or fee on any currency or other monetary instrument that is used in interstate or foreign commerce and that has legal tender status under the Constitution. Repeals provisions of the federal criminal code relating to uttering coins of gold, silver, or other metal for use as current money and making or possessing likenesses of such coins. Abates any current prosecution under such provisions and nullifies any previous convictions.

You can read the full text of the bill on THOMAS (Library of Congress) or follow its progress at govtrack.us.

Aaron Graves

Aaron Graves

Aaron Graves is a veteran and a staunch libertarian, consistently breaking ranks with his Conservative friends on social issues, and with his Liberal friends on economic issues. He is also the guy that wrote the crap that you just read. Sic Semper Tyrannis

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