Nevada wants to issue it's own Legal Tender Coinage!!!

ms70

I just came across this on another BB. Check it out:

Nevada Assembly Bill No. 532

In part it states:

6. The failure of the Congress to discharge its obligation to

2-11 issue all of the money pursuant to Section 8 of Article I of the

2-12 Constitution of the United States absolves the State of Nevada

2-13 from its constitutional obligation not to issue money.

2-14 Sec. 3. 1. The State of Nevada shall issue into circulation

2-15 coins of the State of Nevada in the face amount of $50,000,000.

2-16 The coins must contain 1 ounce of fine silver, must be alloyed to

2-17 90 percent fineness and must bear The Great Seal of the State of

2-18 Nevada on one side and the words “Contains One Troy Ounce

2-19 Fine Silver,” “Twenty Dollars,” “Nevada Legal Tender” and the

2-20 year of issue on the other side. The coins so issued are legal tender

2-21 for all debts, public and private, in this state.


Edited to say- When they come out I want a FGS designation. (Full Great Seal)

nwcs

Yeah, that'll go far.

Edited to change smile to wink

cladking

Very interesting. The implication is that these will equal one US dollar and contain
an ounce of silver, hence they can't circulate against the greenback. (Gresham's law)
The fed probably won't even intercede.


And it is April 1st.


edited to note, I did read it wrong. Thet're $20 so the fed will not allow these to be issued.

AquilaRose

Am I reading that correctly? They want to value 1 oz of silver at twenty dollars?

ms70

Here's another link:

Nevada Legislature

paigowjohnny

I always did like Nevada

nwcs

Yep, April one. Hence the wink in my earlier post.

ms70

I don't think it's an April 1 joke! You can navigate right to it through the Legislature Website.

MadMarty

THe casinos in Nevada have there own coins, why not the state!!

nwcs

Even if it is not a joke, it is against the US Constitution for them to create legal tender currency. So I stand by my original comment, "Yeah, that'll go far."

AquilaRose

I think I get it now.

Nevada wants to put pressure on congress to stop issuing money through the Federal Reserve Bank. By issuing money through the Federal Reserve Bank Congress is not meeting it's constitutional obligation to Nevada to issue money directly to the State of Nevada. If Congress decides to cut the Federal Reserve out of the money loop. Nevada will stop issuing it's own money (the proposed silver coinage). Nevada sure does have enough silver to produce money on the scale it threatens. And, they put twenty dollars on the coin to ensure that silver would have to break $20 an oz. before people melt the new coinage and sell it at melt.

Very interesting!

telecoin

If you look at the current Coin World, there is an advertisement for a privately issed coin: LINK. I saw this group on a TV news magazine a while back. They're one of those separatist type groups that issue their own money. I wonder what the FEDS think about them??

ms70

I'd love to see this get off the ground at least for a little while. That would make some collectible!

ms70

btt

cladking

Many western states issued "coins" back in the 1930's. They were ostensibly
made to make fractional cent change to facilitate payment of sales tax. They
were being used as money so the feds pulled the plug on them.

mrcommem

I would like to see Nevada challege the Federal Reserve and the Treasury Department for causing the States to violate Section 10 of the U. S. Constitution.

Section 10 states "No state shall enter into any treaty, alliance, or conferation; grant letters of marque and reprisal; coin money; emit bill of credit; "make anything but gold and silver coin a tender in payment of debts;

This statement seems very clear to me. The government of the United states must produce silver and gold coin for use as legal tender for payment of debts or the States will be in violation of not being able to enfore Section 10. It seems to me that Nevada is on strong ground to insists the government coinage of silver coins for circulation.

satootoko

<< <i>Nevada is on strong ground to insists the government coinage of silver coins for circulation >>


In Nevada parlance, 5 will get you 10 that you won't find any competent constitutional lawyers to buy that position.
Nevada has no right or duty to specify anything as "legal tender" since the Constitution grants to the Congress the sole power to establish what is or is not legal tender. Theoretically, Congress could make soy beans legal tender, and Nevada would have to accept soy beans in payment of taxes!
Interesting how you ignore the specific language forbidding any state to coin money.

Edited to add this excerpt from Article I, Section 8, of the Constitution of the United States:


<< <i>The Congress shall have Power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
>>

michael

what a waste of time and valuable resourses

if i was the prez
instead if invading iraq i would have invaded nevada

sincerely michael

mrcommem

There is nothing in the Constitution allowing Congress to determine what is legal tender except in Section 10 where it does require the States to allow no payments in anything but silver or gold. Since the Federal government is the only authority empowered to coin money, how will Nevada enforce Section 10?

kranky

According to the latest Coin World, Nevada is scrapping the proposal as their lawyers said it was constitutionally doomed.

Conder101

<< <i><< The Congress shall have Power To coin Money, regulate the Value thereof >>


This section does give the Congress the power to decide what will be legal tender. And Section 10 forbids any STATE from creating money or making items other than gold or silver a legal tender. It does NOT require the federal government to make only gold or silver legal tender. (It also does not forbid private citizens from creating their own money.) The states are not in violation of section 10 by using the feds fiat currency because THEY did not make it a legal tender, the federal government did.

On the other hand the Federal government is in violation of the Constitution since the Congress is not creating the money as required under section 1. Instead they have given that power over to another entity which as far as I can see is not allowed unless the congress was directing the Fed on how much money to create, which they don't.