With federal legislation now pending that would remove the final obstacles to the use of monetized gold and silver coin as a legitimate medium of exchange, the Daily Herald's editors query whether a return to sound money makes sense:
Should the United States make gold and silver the basis of money?Read more ...
Utah's junior senator thinks so. Mike Lee recently joined with a few other Republican senators in introducing S. 1287. It would remove federal taxes from the sale of gold or silver coins, which now are taxed like other investments or collectibles. Under Lee's bill, they'd be treated just like paper money -- and that's the point. Lee and his allies hope the measure will pave the way for gold (or silver) to again become the basis of the monetary system.
"This bill is an important step towards a stable and sound currency whose value is protected from the Fed's printing press," he said. It's fitting that the state's junior U.S. senator co-sponsored the bill. Utah is the first state to authorize gold and silver coins as legal tender, although no one has to accept them in a transaction. It also has ended the state capital gains tax on the coins.
Nor is the Beehive State alone: A dozen other states are considering similar measures. The interest in metals-based money is a byproduct of tough financial times and wild government spending. In a time of fiscal chaos, it's natural to look for new answers.