There has been a bill drafted for the State of New Hampshire reinstituting constitutional “Money”, silver and gold. The bill can be downloaded from the page Silver and Gold as “Money” Implemented by the States. A similar bill has been considered in Indiana, Missouri, Colorado, and Montana. The State legislatures are beginning to pick up on this as they watch the economy go down the drain. If and how soon those bills pass remains to be seen, but the focus of debate has been turned to gold an silver, which hasn’t gone on for decades in this country. So there is a challenge to the current Federal Reserve System with an alternative stable constitutional monetary system.
Alternative Constitutional Currency Bill
VERIFIED AS WORKABLE BY THE STATE OF NEW HAMPSHIRE
Alternative Constitutional Currency Bill Reinstituting Silver and Gold as “Money” in the State of New Hampshire
- Using the State as a ‘pump’ to prime a transition- NH Tobacco Taxes paid in silver and gold.
The means to implement silver and gold into the economy is to use the State as the “pump” to prime a transition and make the transition work in a systematic, relatively slow fashion, so the market can equilibrate to this new alternative currency. We don’t want to change the system overnight – that could create chaos. We want to bring in a relatively small amount of the state’s revenue in gold as a tax.
New Hampshire has a tobacco tax. The tobacco tax is about 7% to 9% of the state’s total revenue. This is a good amount because it’s not to much so that you scare people, but enough so that you get a sufficient amount of revenue to start integrating gold and silver into the fiscal system.
- New Hampshire’s concern: the cost of implementing silver and gold as ‘Money’.
The New Hampshire Alternative Constitutional Currency Statute states that the people who are taxed, the tobacco distributors, are going to be required to pay their taxes in gold. This facilitates the silver and gold flowing into the State coffers. In this particular case (New Hampshire Bill), the original bill was in gold coin specifically. The State Treasurer noted the impediments as to why this was not possible. The State of New Hampshire required:
• Safes for storing the gold.
• Bonded employees
• Money for the high costs of this system.
New Hampshire doesn’t like high costs as they have a “Fiscal Impact Statement” that goes along with every bill.
- New Hampshire’s concerns eliminated- Electronic Gold Currency (EGC) Debit Cards.
The New Hampshire Bill was modernized to used electronic gold currency. Electronic gold currency is exactly that –a vault that holds the gold. And simply by “electronic check” you can transfer your gold to somebody else. There is a provision in the bill that that requires the electronic gold currency provider to allow the account holder to “cash out” in actual gold coins if they choose, so there we have the constitutional problem solved. In this electronic gold currency system, you can go down to as low as 1/10,000 of a gram of gold, so it allows users to make very small change. This solves a common problem with coinage, that people could not make change. This is why copper pennies were traditionally coined (i.e., “small change”). This is also why the Spanish Milled Dollar was often cut into eight pieces. Electronic gold currency solves that whole problem. The Treasury of New Hampshire was fine with the electronic gold currency system as it was just another computer account entry.