Utah Legislature Approves Sound Money

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Today, the Utah Senate passed HB317, a bill which will legalize gold and silver as tender within the state of Utah and exempt the exchange (purchase) of such specie from sales and capital gains taxes. Having already passed the House, the bill will now be sent to Governor Herbert to be signed into law, should he so decide.

This type of bill is one that is becoming increasingly popular throughout the country, with multiple states introducing and considering such legislation. Though Utah is now the first state to have a legislature approve of the idea, the sustained momentum of getting other states to review the proposal demonstrates the resiliency of the campaign for sound money. With the U.S. Dollar plummeting in value, this is an issue that will become more popular as time goes on.

As the author of the bill noted in a Fox News article on the subject, this bill will allow Utahns to better prepare for financial turmoil ahead, more easily diversifying into currency with a long history of stability.

This bill, however, is a watered down version of the original submission by the author, Larry Hilton. As we reported previously, the goals of this effort are far more comprehensive and specific. The limited provisions included in this final bill, while certainly welcome, are merely a first step. Expect to see successive legislation in upcoming sessions to expand and broaden the scope of what the legislature passed today.

Article I, Section 10 of the U.S. Constitution states emphatically that “no state shall make any thing but gold and silver coin a tender in payment of debts.” Plainly put, this is the goal: to restore the Constitution’s mandate of gold and silver as the only currency accepted in payment of debts by the states. A recent op-ed at tenthamendmentcenter.com notes what the realization of this goal would achieve:

Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State (as citizens residing in other States carry out their desire to bank with sound money), and an eventual outcry against the use of Federal Reserve Notes for any transactions.

With this vote, Utah has demonstrated leadership among the states on the issue of sound money in taking one step towards the constitutional mandate that has for decades been ignored. Please contact Governor Gary Herbert’s office at 801-538-1000 and ask that he sign this important bill into law.

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You can download the Constitutional Tender Act template here:
http://www.tenthamendmentcenter.com/legislation/constitutional-tender/

Track Constitutional Tender legislation in the states at this link:
http://www.tenthamendmentcenter.com/nullification/constitutional-tender/

Connor Boyack is president of Libertas Institute. He is the author of Latter-day Liberty: A Gospel Approach to Government and Politics and Latter-day Responsibility: Choosing Liberty Through Personal Accountability.

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23 Responses to “Utah Legislature Approves Sound Money”

  1. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into [...]

  2. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  3. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  4. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  5. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  6. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  7. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  8. [...] 1439 is legislation modeled after Utah’s which was the first to pass and be signed into law. Several other states have introduced similar [...]

  9. [...] “Sound Money Act” has already been implemented in Utah and South Carolina and ispending or pursued in several other “Red” states by [...]

  10. sovereignthink says:

    Action item – Alt-Market.com

    Million OZ March a call to put Silver and Gold in Every Utah Citizens Pocket

    Utah Silver and Gold Staged to Kill the Bank – Utah Vs Fed

    sovereignthink.wordpress.com

  11. sovereignthink says:

    Theatre of Operation – Beachhead Utah

    Million OZ March – Silver and Gold in Every Pocket in Utah http://sovereignthink.wordpress.com/2011/04/30/mi

    Utah Silver and Gold Staged to Kill the Bank – Utah Vs Fed http://sovereignthink.wordpress.com/2011/04/29/ut
    With the passing of the Utah Sound Money Act; The Utah Legal Tender Act.

  12. sovereignthink says:

    This bill recognizes gold and silver coins that are issued by the federal government as legal tender in the state and exempts the exchange of the coins from certain types of state tax liability. http://sovereignthink.wordpress.com/2011/04/29/ut

    Utah Silver Liberation Army Orders;
    We need to enlist every person in Utah and need to create groups of the Utah SLA, who are ready to hit the streets, colleges and churches.

    We need for every Silver Soldier in Utah to send out a call to action and get their friends and families to convert $20.00 – $1000.00 into silver. Silver that can be purchased or transferred from debt notes now and used to pay taxes some other year at a better price (Tax Free).

    The Alarm Bell has been run. Now Ring the Silver Bell of Liberty.

    -sovereignthink

  13. [...] puts the Fiat Dollar on Notice Written by: Connor Boyack Earlier this month, we reported on the sound money bill which the Utah legislature passed. Last Friday, Governor Herbert signed this bill into [...]

  14. [...] Goes for the Gold Written by: Connor Boyack Earlier this month, we reported on the sound money bill which the Utah legislature passed. Last Friday, Governor Herbert signed this bill into [...]

  15. [...] It exempts the sale of these metals from Utah sales and capital-gains taxes. If Governor Herbert si… [This could be profound. Residents of Utah would not have to use Federal Reserve Notes in commerce. Banks would have to accept gold and silver coin on deposit and settle accounts with it as well. Other states may follow suit.] TAC 2011 Mar 10 [...]

  16. Chris says:

    Join the Utah sound money Facebook page stay up to date on current events and ways you can help promote the use of sound money in Utah!
    http://www.facebook.com/utahsoundmoney

  17. [...] Utah Senate also passes gold-and-silver legal-tender act. It exempts the sale of these metals from U… [This could be profound. Residents of Utah would not have to use Federal Reserve Notes in commerce. Banks would have to accept gold and silver coin on deposit and settle accounts with it as well. Other states may follow suit.] TAC 2011 Mar 10 (Cached) [...]

  18. Richard Shropshire says:

    The gold and silver coins are legal tender for only their face value.

  19. I'm confused. Just how is this bill going to cause a reverse Gresham's law effect? And when did use of gold and silver (coins) become illegal tender in the state?

    Todd Marshall
    Plantersville, TX

  20. KingofthePaupers says:

    Jct: They've got no gold and silver to pledge as collateral for their money, so they choose to base their medium of exchange on something they don't have much of! Har har har. Better they should base it on human time at labor in a UNILETS timebank.

  21. [...] to officials with the Utah branch of the Tenth Amendment Center, the bill is hoped to serve as “a first step” in the [...]

  22. j r says:

    Ben Bernanke reaches for the bottle of Rolaids.

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