Seeing sense in Sound Money

Gold has historically been the top-ranked monetary commodity for the U.S. and the rest of the world.

It lends itself so well to the ideal characteristics of money: limited in supply, recognizable as wealth, and physically durable. Its production tends to be in sync with long-term economic growth, making it the most appropriate constraint on money creation. (Instead of creating inflation worries by just printing more.) Currency backed by gold, then, fulfills money’s uses as a medium of exchange, unit of account, and store of value.

With this in mind, Utah took the first step in doing what it could to protect itself against further deterioration of the dollar by passing HB 317, sponsored by Representative Brad Galvez, that authorizes gold and silver as legal tender.

Even if our nation is fortunate enough to sidestep the really calamitous consequences our current fiscal and monetary policies engender, sound money just makes sense for Utahns.

In addition to recognizing gold and silver coins as money, the Utah Sound Money Act is voluntary, provides a credit against their capital gains tax liability and instructs a legislative interim committee to study the establishment of an alternative legal tender system in the state. This legislation is not only a response to the decline of the dollar, but also rooted in the founders’ idea about money which was inscribed in Article I, Section 10 of the Constitution: no state shall “make any thing but gold and silver coin a tender in payment of debts.”

Although there has not been much mention of it locally, this bill has caught the attention of the nation and the world. Numerous articles, news reports, interviews and talk shows have reported on this effort to improve fiscal security and soundness. Articles have been written in Germany, Austria and England just to name a few.

Several articles that reference H.B. 317