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A Statement by Ron Paul: "Even "Zinc Standard" Can't Be Maintained"
Goldbully
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From Numismaster................
Even "Zinc Standard" Can't Be Maintained
By Ron Paul
March 20, 2008
Editor's note: The following is a March 11 statement by Rep. Ron Paul, R-Texas. The former Republican and Libertarian candidate for President of the United States addressed legislation that was the subject of a hearing of the House of Representatives' Financial Services Committee Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
Mr. Chairman, I oppose H.R. 5512 because it is unconstitutional to delegate the determination of the metal content of our coinage to the Secretary of the Treasury.
Under Article I Section 8 of the Constitution, the Congress is given the power to coin money and regulate the value thereof. It is a shame that Congress has already unconstitutionally delegated its coinage authority to the Treasury Department, but that is no reason to further delegate our power and essentially abdicate congressional oversight as the passing of H.R. 5512 would do. Oversight by members of Congress, who have an incentive to listen to their constituents, ensures openness and transparency. This bill would eliminate that process and delegate it to unelected bureaucrats.
The Secretary of the Treasury would be given sole discretion to alter the metal content of coins, or even to create non-metal coins. Given the history of congressional delegation and subsequent lax oversight on issues as important as the conflict in Iraq, it would be naïve to believe that Congress would exercise any more oversight over an issue as unimportant to most members as the composition of coins.
While I sympathize with the aim of Section 4 of this bill to save taxpayer dollars by minting steel pennies, it is disappointing that our currency has been so greatly devalued as to make this step necessary. At the time of the penny's introduction, it actually had some purchasing power. Based on the price of gold, what one penny would have purchased in 1909 requires 47 cents today. It is no wonder then that few people nowadays would stoop to pick up any coin smaller than a quarter.
Congress' unconstitutional delegation of monetary policy to the Federal Reserve and its reluctance to exercise oversight in that arena have led to a massive devaluation of the dollar. If we fail to end this devaluation, we will undoubtedly hold future hearings as the metal value of our coins continues to outstrip the face value.
H.R. 5512 is a sad commentary on how far we have fallen, not just since the days of the Founders, but only in the last 75 to 100 years. We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard.
Paper money inevitably breeds inflation and destroys the value of the currency. That is the reason that this proposal is before us today.
This Viewpoint is a statement by Rep. Ron Paul posted on his Web site.
Viewpoint is a forum for the expression of opinion on a variety of numismatic subjects. The opinions expressed here are not necessarily those of Numismatic News.
To have your opinion considered for Viewpoint, write to David C. Harper, Editor, Numismatic News, 700 E. State St., Iola, WI 54990. Send e-mail to david.harper@fwpubs.com.
Numismaster Link
Today's statement by Numismaster's David Harper..............
Perhaps it is a Bad Time for Any Legislation
By David C. Harper
March 24, 2008
I don't ordinarily put a statement from a congressman in the Viewpoint column, but Rep. Ron Paul's comments written for a March 11 hearing will have many collectors nodding vigorously.
We know that our elected representatives in the House of Representatives and the Senate don't like being tied up with matters concerning coinage. They are not "mom and apple pie issues" and they involve boring numbers like weights, diameters and hard stuff like that.
The Congress would rather dodge its homework and speak in grand phrases. Years ago, these matters were essentially delegated to strong committee chairmen and the rest of the body would go right along with it knowing that their esteemed colleague would not cause them any discomfort. In short, stuff got done and most members didn't have to do homework.
Today conditions seem a little different. There is an obvious difference of opinion between the U.S. Mint and the House subcommittee. There are two pieces of legislation.
One, HR. 3330, delegates authority over coin composition to the Secretary of the Treasury.
The other, H.R. 5512, appears to give him the authority over all circulating coins but the cent, but then binds him hand and foot from actually using this new authority, yet requires him to go through the motions nevertheless.
Part of this is due no doubt to objections from the vending machine industry. Their primary aim is to not spend any money unnecessarily changing their coin discriminator mechanisms.
The cent is is a nonplayer in this area, so the vending machine operators don't care if it is made of chocolate. Nickels, dimes and quarters are a different story.The half dollar is universally not used and the dollar coin is hit and miss.
That's why the bill, H.R. 5512, which has the vending industry's backing, mandates an immediate change to steel in the cent, but mandates five conscutive years of losses before the Treasury can begin to do something about the nickel.
This puts the Treasury and the Mint in an odd situation. On the one hand, with the cent, they are asked to act faster than they can thoughtfully do and on the other they are mandated to act much more slowly. Coin collectors are given a gift in the form of retention of the 95-percent copper alloy collector cent in 2009 to celebrate the 200th anniversary of Lincoln's birth.
Though that gift is an indication that we collectors are noticed and our opinions considered by Congress, I have to wonder if it is put there so we collectors don't offer any negative opinions about the legislation that contains it.
Paul objects to the bill on constitutional grounds. I will leave that to others. I object on more practical grounds that it seems designed to give the appearance of taking action while its provisions are written to impede any action.
Let's have more discussion. Let Rep. Paul make his case, let the subcommittee leadership makes its case and let the Treasury make its case. Nothing may change, but then again, a new Congress and a new President might lead to something completely different next year.
Numismaster Link 2
Even "Zinc Standard" Can't Be Maintained
By Ron Paul
March 20, 2008
Editor's note: The following is a March 11 statement by Rep. Ron Paul, R-Texas. The former Republican and Libertarian candidate for President of the United States addressed legislation that was the subject of a hearing of the House of Representatives' Financial Services Committee Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
Mr. Chairman, I oppose H.R. 5512 because it is unconstitutional to delegate the determination of the metal content of our coinage to the Secretary of the Treasury.
Under Article I Section 8 of the Constitution, the Congress is given the power to coin money and regulate the value thereof. It is a shame that Congress has already unconstitutionally delegated its coinage authority to the Treasury Department, but that is no reason to further delegate our power and essentially abdicate congressional oversight as the passing of H.R. 5512 would do. Oversight by members of Congress, who have an incentive to listen to their constituents, ensures openness and transparency. This bill would eliminate that process and delegate it to unelected bureaucrats.
The Secretary of the Treasury would be given sole discretion to alter the metal content of coins, or even to create non-metal coins. Given the history of congressional delegation and subsequent lax oversight on issues as important as the conflict in Iraq, it would be naïve to believe that Congress would exercise any more oversight over an issue as unimportant to most members as the composition of coins.
While I sympathize with the aim of Section 4 of this bill to save taxpayer dollars by minting steel pennies, it is disappointing that our currency has been so greatly devalued as to make this step necessary. At the time of the penny's introduction, it actually had some purchasing power. Based on the price of gold, what one penny would have purchased in 1909 requires 47 cents today. It is no wonder then that few people nowadays would stoop to pick up any coin smaller than a quarter.
Congress' unconstitutional delegation of monetary policy to the Federal Reserve and its reluctance to exercise oversight in that arena have led to a massive devaluation of the dollar. If we fail to end this devaluation, we will undoubtedly hold future hearings as the metal value of our coins continues to outstrip the face value.
H.R. 5512 is a sad commentary on how far we have fallen, not just since the days of the Founders, but only in the last 75 to 100 years. We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard.
Paper money inevitably breeds inflation and destroys the value of the currency. That is the reason that this proposal is before us today.
This Viewpoint is a statement by Rep. Ron Paul posted on his Web site.
Viewpoint is a forum for the expression of opinion on a variety of numismatic subjects. The opinions expressed here are not necessarily those of Numismatic News.
To have your opinion considered for Viewpoint, write to David C. Harper, Editor, Numismatic News, 700 E. State St., Iola, WI 54990. Send e-mail to david.harper@fwpubs.com.
Numismaster Link
Today's statement by Numismaster's David Harper..............
Perhaps it is a Bad Time for Any Legislation
By David C. Harper
March 24, 2008
I don't ordinarily put a statement from a congressman in the Viewpoint column, but Rep. Ron Paul's comments written for a March 11 hearing will have many collectors nodding vigorously.
We know that our elected representatives in the House of Representatives and the Senate don't like being tied up with matters concerning coinage. They are not "mom and apple pie issues" and they involve boring numbers like weights, diameters and hard stuff like that.
The Congress would rather dodge its homework and speak in grand phrases. Years ago, these matters were essentially delegated to strong committee chairmen and the rest of the body would go right along with it knowing that their esteemed colleague would not cause them any discomfort. In short, stuff got done and most members didn't have to do homework.
Today conditions seem a little different. There is an obvious difference of opinion between the U.S. Mint and the House subcommittee. There are two pieces of legislation.
One, HR. 3330, delegates authority over coin composition to the Secretary of the Treasury.
The other, H.R. 5512, appears to give him the authority over all circulating coins but the cent, but then binds him hand and foot from actually using this new authority, yet requires him to go through the motions nevertheless.
Part of this is due no doubt to objections from the vending machine industry. Their primary aim is to not spend any money unnecessarily changing their coin discriminator mechanisms.
The cent is is a nonplayer in this area, so the vending machine operators don't care if it is made of chocolate. Nickels, dimes and quarters are a different story.The half dollar is universally not used and the dollar coin is hit and miss.
That's why the bill, H.R. 5512, which has the vending industry's backing, mandates an immediate change to steel in the cent, but mandates five conscutive years of losses before the Treasury can begin to do something about the nickel.
This puts the Treasury and the Mint in an odd situation. On the one hand, with the cent, they are asked to act faster than they can thoughtfully do and on the other they are mandated to act much more slowly. Coin collectors are given a gift in the form of retention of the 95-percent copper alloy collector cent in 2009 to celebrate the 200th anniversary of Lincoln's birth.
Though that gift is an indication that we collectors are noticed and our opinions considered by Congress, I have to wonder if it is put there so we collectors don't offer any negative opinions about the legislation that contains it.
Paul objects to the bill on constitutional grounds. I will leave that to others. I object on more practical grounds that it seems designed to give the appearance of taking action while its provisions are written to impede any action.
Let's have more discussion. Let Rep. Paul make his case, let the subcommittee leadership makes its case and let the Treasury make its case. Nothing may change, but then again, a new Congress and a new President might lead to something completely different next year.
Numismaster Link 2
0
Comments
I knew it would happen.
You think we can even maintain a plastic standard?
<< <i>A plastic cent?
You think we can even maintain a plastic standard? >>
Not if Crude oil keeps increasing in price. Found this little tid bit of info;
"About 4 percent of the world's annual oil production of some 84.5 million barrels per day is used as feedstock for plastic, and another 4 percent or so provides the energy to transform the feedstock into handy plastic. "
I'm thinking rocks and stones will be our best bet for future money
Not only can a "zinc" standard be maintained a Freedom standard can't be maintained. We've become just another place on the map only with trillions in debt thereby guaranteeing future generations to be saddled with ever higher taxes whether it comes by way of direct taxation, indirect taxation, further depreciation of the currency or outright confiscation .
While other countries peoples have perhaps fought and died because they believed they would be free if they did so, this country DID attain that freedom by fighting for it, only now the masses have given up rights and freedoms that great men and women fought and died for, this time without so much as an argument.
Screw you CNN/Fox and all associated with you and your way of thinking.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i> The former Republican and Libertarian candidate for President of the United States >>
What the hell is this? Is he actually running? I guess he would like to see racist-preacher-following Barak Osama get elected.
<< <i>Ron Paul is right and this election is clear proof that there is no such thing as a free a fair election in this country. >>
days" politicians were bought and paid for.
Keep an open mind, or get financially repressed -Zoltan Pozsar
<< <i>Just saw an interview with Dr. Paul, he HAS NOT withdrawn from the presidential race. >>
Correct! He has withdrawn from the race for the Republican Nomination.
<< <i>That text just unkowingly set the grounds to dump the penny completely. 1 cent is worth 47 cents from when it was originally introduced. Guess that means we can dump the 1C, 5C and 10C. >>
I have sort of been saying that for years. On irreversible inflationary arguments, we should eliminate the second decimal place entirely. Mint the dime, half, and then prudent dollar units ($1, $2, $5, ...whatever). The half is useful if resized. The quarter is useless if we drop the cent and nickel....the second decimal place.
NSDR - Life Member
SSDC - Life Member
ANA - Pay As I Go Member
<< <i>
<< <i>Just saw an interview with Dr. Paul, he HAS NOT withdrawn from the presidential race. >>
Correct! He has withdrawn from the race for the Republican Nomination. >>
I know a bunch of people who would vote for him if he were not a Republican.
<< <i>
<< <i>
<< <i>Just saw an interview with Dr. Paul, he HAS NOT withdrawn from the presidential race. >>
Correct! He has withdrawn from the race for the Republican Nomination. >>
I know a bunch of people who would vote for him if he were not a Republican. >>
It was necessary for me to change political affiliations so I could vote for him in the Fla primary.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>racist-preacher-following Barak Osama >>
Wow! In five words, you managed to condemn racism and be a racist yourself!
>>>My Collection
Camelot
<< <i>This is my official statement. In the upcoming
election for Pres, I intend to vote for a single
cell organism. It will not lie, deceive, be corrupted,
nor offend anyone. All it will do is reproduce, metabolize,
move and perhaps wiggle its little flagellates on occasion.
AMOEBA FOR PRESIDENT! >>
Bear,
Did you stumble upon that "Yellowstone Honey Jug" tonight?
Your wit and wisdom is paramount!
GB
<< <i>All it will do is reproduce, metabolize,
move and perhaps wiggle its little flagellates on occasion. >>
And that differs from some of our long-tenured representatives how?
NSDR - Life Member
SSDC - Life Member
ANA - Pay As I Go Member
like some of our politicians.
Camelot
<< <i>Actually, the little fellow does kinda look
like some of our politicians.
At least in the invertebraic sense....
NSDR - Life Member
SSDC - Life Member
ANA - Pay As I Go Member
I may not agree with Dr. Paul about everything, but that only means that I don't agree with the Constitution about everything. So I'm thinking that maybe I need to re-examine my own thought processes, and the Constitution as well.
Not by choice, I'm now helping to financially support 5 other grown adults in the family who have fallen on hard times and/or are not equipped to make it in this world alone.
When the government can constantly squeeze more and more money out of my income for people who I don't know, why can't the government seem to help the people that I do know? Socialism at it's worst gives to those who know how to take, but not to those who truly need.
That's your zinc standard, going on steel.
I knew it would happen.
Love it!!!!!!!!!!!!!!!