Friday, February 19, 2010


Well, that's certainly one way to do it:

Pitts, a fourth-term Republican from Laurens, introduced legislation earlier this month that would ban what he calls “the unconstitutional substitution of Federal Reserve Notes for silver and gold coin” in South Carolina.

If the bill were to become law, South Carolina would no longer accept or use anything other than silver and gold coins as a form of payment for any debt, meaning paper money would be out in the Palmetto State.

Pitts said the intent of the bill is to give South Carolina the ability to “function through gold and silver coinage” and give the state a “base of currency” in the event of a complete implosion of the U.S. economic system.


Constitutional issues aside, Pitts’ bill faces another hurdle. Critics point out that silver and gold coins can’t actually serve as a form of currency.

“You can’t put a set value on a pure silver or gold coin because it’s actual value fluctuates,” one expert said. “You can say a gold coin is worth $50 but it would actually be worth whatever the market says it’s worth, based on supply and demand. In reality, what you have is a bartering good, not a form of currency.”

Still, Pitts said, a system based around bartering is better than a currency-based economy.

(emphasis added)

[via LGF]


CJ said...

I think they should pass it so we can observe the debacle of this social experiment.

It will shut down every business and every transaction in the state.

Jb said...

I would love to see how an ATM would work under such circumstances.

More importantly, does "credit" count as currency or would I have to buy a house with bags of silver and gold?

CJ said...

I think it would work like a slot machine.

Credit would be out the window. Of course, one could isssue an I.O.U. Oh shoot. that would be on paper, wouldn't it?