Sunday, February 13, 2011

South Carolina Bill Would Coin State Money

A Silver Eagle. The US Still Mints Some Real Money.
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A bill by a South Carolina State Senator would authorize the state to coin its own money. Sen. Bill Bright says this is needed because of the possibility of the collapse of the dollar. His view is that a back up plan is needed to protect people from economic chaos when the dollar goes down. The coins his legislation authorize would be of either silver or of gold.

Well, I think he is right about the dollar, and right about the need for an alternative. The problem is that the Constitution does not authorize the states to coin their own money. They can only choose to recognize or not recognize money coined by others- the US mint for example. I would suggest he re-tool his bill to authorize the state to recognize privately minted silver or gold bars or rounds which meet state requirements as "commodity based exchange" mechanisms which function like money.

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