Both Congress’ enumerated power to coin money (from any metal), and the power of the States to only make gold and silver legal tender, were powers that didn’t necessarily have to be exercised.
A power is something you can exercise, or not exercise. This is clearly evidenced by Congress’ other enumerated powers, such as the power to declare war, or to borrow money on the credit of the United States.
There was an insidious nature to the Coinage Act of 1792, in that it forced American taxpayers to pay for the cost of minting the gold and silver brought to be minted (see Section 14 on page 249), which was overwhelmingly owned by wealthy interests.
Reblogged this on Recovering Austrians.
[...] 2) The Constitution doesn’t insist on a gold or silver-backed currency [...]
Yep, you’re correct, gold and silver isn’t money, and it has no place backing our currency…so you mind selling me all your gold and silver for the 1971 price when the gold standard ended? Or everyone that accepts your premise mind sending me all their silver JFK half dollars at 50 cents?
Thank you.
And, so, the gold and silver coinage didn’t work…because wealthy interests controlled the minting machines…gee, so how does that have anything to do with the gold standard itself? I suppose electing officials who would take the time to purchase mints publicly-owned would be impossible? That has to be the weakest excuse I have ever run across in my 56 years. Right up there with the fact sleazy and dishonest officials printed more paper than we had in gold in the vault also has something to do with the gold standard itself?
No, it does not…a very close second, “runner-up” to the weakest excuse given above… gold is now up @ 17% a year for the last decade…because of dishonest and sleazy central bankers…gold is money, silver is money…and all the weak excuses and verbage is just that: hot air.
you’re missing the basic point selfprogrammed.
Nobody is saying you shouldn’t buy some silver as a hedge to inflation.
But metal based currency is taxed with interest, just like today’s paper.
That’s the key monetary issue and that’s why metal based currency is a non-item.
http://realcurrencies.wordpress.com/2011/12/27/why-bankers-love-gold/
[...] 6) The Constitution doesn’t insist on a gold or silver-backed currency [...]
[...] and currency, see The U.S. Constitution doesn’t say money should be gold or silver coin, and The Constitution doesn’t insist on a gold or silver-backed currency. Share this:FacebookDiggRedditTwitterLike this:LikeBe the first to like this [...]
[...] system, see The U.S. Constitution doesn’t say money should be gold or silver coin, and The Constitution doesn’t insist on a gold or silver-backed currency. Share this:FacebookDiggRedditTwitterLike this:LikeBe the first to like this [...]
[...] For more misconceptions about gold and silver in the Constitution, please read The Constitution doesn’t insist on a gold or silver-backed currency. [...]
Our Founding Father’s failed miserably on everything having to do with monetary policy and taxation. They could have really elaborated on the single most important aspects of government, the first of which is providing a sovereign book entry currency. “Gold and silver” is pretty vague considering you can plate a base metal. “The power to borrow money” should raise a red flag – that’s a fluffy way of saying pre-taxation.
Yes, does gold and silver mean 100% gold and silver? Then that would exclude the Gold Eagle, which is only 91.67% pure.
A problem with nearly 100% gold coins is that they scratch easily, which makes them less useful for everyday transactions.
As for the Constitutional Convention that ran from May to September of 1787, they didn’t get around to discussing money until August. (The Constitutional Convention of 1787 by John R. Vile)
Precious metals are a commodity, their value is constantly changing in relation to other commodities. You can only denominate them in weights. We should be fluent in their use, but we would have to constantly be monitoring their value relative to cash value. Not all are going to chose to trade in minted precious/rare metal – true money, and they should not be forced to.
Yes, despite the rhetoric of “instrinsic value,” which even Gary North takes exception with, their values are relative to the specific time and parties to the transaction.