25 Reasons why the Sound Money Bill Must Be Supported
Silver Stock Report
by Jason Hommel, July 8, 2004
The state of Nevada considered minting and issuing silver coins in 2003. They were thinking about minting once ounce silver coins with a legal tender face value of $20.
But that creates a problem. That would not be sound silver money, but rather, fraudulent silver money. It is unjust to print $20 bills on $5-6 worth of silver! See: NEVADA SILVER COIN BILL: SOUND SENTIMENT BUT BAD JUDGEMENT by Franklin Sanders.
Today, the state of New Hampshire has a sound money bill that is going to do it right. It will allow the State to use gold and silver coins minted by the U.S., in transactions with the public, at the current market value of the coins.
So, then, here are my 25 Reasons why the Sound Money Bill Must Be Supported!
1. People deserve a choice to be paid, or pay, in gold and silver.
2. Honest weights and measures, such as gold and silver, deserve the honor of being an option to choose.
3. If the state ends up paying people of the state in gold and silver, it will put real wealth into the hands of the people, which will protect the people of the state against currency devaluation and inflation by the Federal Government. The wealthier the people of the state, the stronger and more fit will be the state government.
4. If the state puts a significant amount of gold and silver into the hands of the people of the state, and if, as a result, the price of gold and silver move up, then the people of the state stand to benefit the most. And again, the wealthier the people, the better off will be the state government.
5. It will not cost the state any money at all to put gold and silver into the hands of the people, in fact, it may be able to do so at a small profit in the exchange, just as bullion dealers make a profit.
6. If gold and silver move up in price in response to the Sound Money Bill, it will not cost the state anything, since the state will simply buy gold and silver at the higher price, and sell it at the higher price.
7. If gold and silver move up in price in response to the Sound Money Bill, it may help the state’s finances, if the state were to wisely hold some of it’s own revenues in the form of gold and silver, during the process.
8. The nations of the world are competing to devalue or inflate their paper currencies. They purposefully reduce the value of their fraudulent paper money in order to gain an export advantage when considering trade with other nations. If taken to the extreme and most logical conclusion, it is a race to return to a gold standard, and the nation, or state, that gets there first, wins. If you devalue the excess paper money that has been created to excess, you have basically returned to a gold standard. Thus, those nations and states who use gold as money first, will ultimately be able to attract and earn the most real wealth, gold and silver, while others are pursuing the false dreams of fraudulent paper currencies as wealth.
9. A return to using gold and silver coins as money will help to eliminate fraud in other areas of the economy, and thus, help the economy to prosper.
10. A state that conducts trade in honest weights and measures is honest, and thus, more secure and more trusted by the people. A state that refuses honest weights and measures in trade is dishonest, less trusted by the people, and more susceptible to being overthrown, especially in hard economic times.
11. Gold and silver are the ultimate protection against hard economic times.
12. Gold and silver are the least risky form of wealth, since they cannot go to zero value. Paper currency can be devalued to zero. Bonds can be defaulted on, or be inflated away to zero. And stocks can go to zero if companies go bankrupt.
13. The U.S. Dollar, (a Federal Reserve Note) is overvalued by about 90 times more than it should be. One of the best measures of the money supply, M3, says that there is $9.1 Trillion dollars in U.S. banks as of April, 2004. Yet the U.S. government only has 261 million ounces of gold. Thus, there is 9,100,000 dollars for every 261 oz. of gold backing, and thus, $34,865 dollars for every one ounce of gold. Holding a federal paper dollar is a danger to the people of the state.
The source for these numbers can be confirmed at the following links:
$9.1 trillion M3: www.federalreserve.gov/releases/h6/Current/
261 million oz. of U.S. gold: www.fms.treas.gov/gold/index.html
Both of those links are at Federal Government web sites!
Bonds are a competing asset class for gold, and are often thought of as a key form of money. The U.S. bond market is estimated in size to be $20 trillion. If you consider bonds as a form of paper money, then there are over $110,000 dollars for every ounce of gold held by the U.S. government.
14. Gold and silver, therefore, protect against deflation caused by banks going bankrupt. Only gold and silver are real money. Paper money is fraud, a false measure, and a false weight.
15. Gold and silver also protect against inflation.
16. Gold and silver, as they go up in value due to inflation, provide a serious rate of return. From 1971 to 1980, gold moved up from $35/oz. to $850/oz. That was an increase of about 24 times, 2400%, which averages out to an annual increase of 34% over ten years.
17. There is always enough gold and silver to use as money. If gold and silver become scarce, and more in demand, their value goes up. Thus, it increases the value of all the gold and silver already in existence. This will benefit the most those people who are already using gold and silver as money, or those who return to using gold and silver as money first. This nature of gold and silver, to become more valuable, is the exact opposite of paper money, which can all become utterly worthless at any time.
18. It is the job of the state to be a leader. If the state returns to using gold and silver as money, it will encourage businesses in the state to return to using gold and silver as money.
19. A state that uses gold and silver as money is more likely to attract people who own gold and silver. People who own gold and silver will be more likely to move to the state and start up businesses that will conduct trade in gold and silver. A state with more wealthy people is a stronger and more secure state.
20. The U.S. of America was founded on using gold and silver as money, and became a great nation by using gold and silver as money.
21. Issuing gold and silver to the people as money is vastly different to issuing paper money that is created when someone borrows a dollar into existence from the Federal Reserve. Debt based money, such as the dollar, puts people into debt and bondage. Gold and silver are not created by debt. Gold and silver can help eliminate the debt burden of society, and help create a free society.
22. Today, there is no political issue more important than gold and silver as money. Consider carefully the following quotes, and who said them:
“Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon.”
--Robert H. Hemphill, former credit manager, Federal Reserve Bank of Atlanta
“All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation.”
--John Adams, letter to Thomas Jefferson
“Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society (destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose.”
--John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
23. It is the job of the state to administer justice, and to protect the people from theft and from fraud. Using gold and silver as money accomplishes that. Paper money is an injustice, a fraud, and inflation is a process that the Federal Government uses to steal from the people of the states.
24. The Sound Money Bill, although it will not require the state to use gold and silver as money in all transactions, will allow the people to choose to be paid in gold or silver, and is thus a good start.
25. The politicians who support the sound money bill are most likely to be re-elected. They stand behind an issue that is honest, and cannot have any reasonable political objections.
For more information on the Sound Money Bill, see