Because the federal government is becoming less trustworthy with quantitative easing, endless spending and printing of money, states are turning to the precious metals of gold and silver as legal tender. On Monday, the House of Representatives of the State of Arizona took the step to make gold and silver legal money and have it be treated no differently than the US Dollar.
This current measure passed in February, but the bill had to be amended because the Arizona State Department of Revenue did not want to collect gold coins and bullion as payments for taxes. The Department did not have a suitable way at the present time to deal with people and businesses paying their taxes in such a manner. So now as the bill stands, gold and silver can be used as a monetary exchange as long as a business or entity that collects money is willing to accept it.
It remains to be seen how much the public will start to use the precious metals as currency or for larger transactions since the price of gold fluctuates on a daily basis and any collectible coins traded for goods or services would be subject to interpretation as to exactly how valuable they are. However, this is at least a first step to return our country to some kind of sound money system.
Read more below on this interesting development in the world of currency from TheBlaze.com below:
The bill makes it so that gold and silver are treated no differently than the U.S. dollar. The law also states that as legal tender, gold and silver would not be subject to tax or regulation as property.
â€œSenate Bill 1439 would let people use the precious metals as money as long as businesses agree to take them. If made law, it would take effect in 2014,â€ the Associated Press notes, adding that the metals would not have a set monetary value.
The state Senate first approved the measure in February. However, the Republican-controlled House amended the bill so as to exempt the state Department of Revenue from having to accept gold as legal payment.
â€œState officials want no part in the bill because they are wary of how it would work in practice,â€ the Associated Press notes, citing Republican Rep. David Livingston, who crafted the exemption. â€œBut Livingston said the stateâ€™s reluctance to participate in the measure is not indicative of larger problems with the bill.â€
â€œThey wanted to make sure they wouldnâ€™t be required to take gold and silver,â€ said Rep. Livingston. â€œThey just didnâ€™t want to have to deal with it right now.â€
The bill now heads back to the state Senate for final approval.
Arizona isnâ€™t the only state to push legislation that would declare privately minted gold and silver coins legal tender.
â€œArizona is one of more than a dozen states to incorporate similar laws into their roster,â€ the Daily Mail notes. â€œLawmakers in Minnesota, North Carolina, Idaho, South Carolina, Colorado and other states have debated similar laws in recent years.â€
Utah in 2011 became the first state to pass a law recognizing gold and silver as legal tender.