State of Utah Passes Law to Use Silver & Gold as Currency
Posted by John MacHaffie
Utah State Passes Silver & Gold Currency Bill into Law
Utah took its first step Friday toward bringing back the gold standard
when the state House passed a bill that would recognize gold and silver
coins issued by the federal government as legal currency.
The House voted 47-26 in favor of the legislation that would also exempt
the sale of gold from the state capital gains tax and calls for a
committee to study alternative currencies for the state.
The legislation now heads to the state Senate, where a vote is expected next week.
Under the bill, the coins would not replace the current paper currency
but would be used and accepted voluntarily as an alternative.
If the bill passes, Utah would become the first of 13 states that have
proposed similar measures. The others states are Colorado, Georgia,
Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South
Carolina, Tennessee, Vermont and Washington.
Backers of Utah’s bill say they want to send a message to the rest of the country.
“People sense that in the era of quantitative easing and zero interest
rates, something has gone haywire with our monetary policy,” said
Jeffrey Bell, policy director for the Washington-based American
Principles in Action, which helped shape the bill.
“If one state recognizes gold as a valid currency, I think it would
embolden people not just in other states but in Washington,” he said.
The U.S. used the gold standard from 1873 until 1933, when President
Franklin D. Roosevelt outlawed the private ownership of gold amid the
Great Depression. President Richard Nixon abandoned the gold standard
altogether when he announced in 1971 that the U.S. would no longer
convert dollars to gold at a fixed value.