The Federalism and States’ Rights Committee passed HB 2173 escrow agents; legal tender, on a 5 to 3, party line vote this morning.
Bill sponsor Mark Finchem said in a memorandum to legislators, “As it moves to the floor of the house, a clear understanding of the concept of inflation and relative erosion in buying power is key. The federal reserve “note” is merely evidence of federal debt that we call money. With inflation of the US Dollar it takes more “dollars” to exchange for a 1 oz. piece of silver. The silver retains its intrinsic value and trade value, while the dollar is what loses its value.”
Finchem says that constituents asked him to forward the bill. According to Finchem, constituents have asked for clarification under Arizona statute between federally minted coin that may be used as legal tender, and federally minted coin that is numismatically 15% or more, greater in value than the recognized value of a similar coin.
Others claim that the bill will primarily protect those who invest in the coins from capital gains taxes.
“We as Americans believe deeply in choice. HB 2173 provides for real choice in currency. It does not force anyone to use one specific monetary vehicle, but opens up the opportunity for value to value trade,” Finchem wrote in his memorandum of introduction. “Although few realize it today, thanks to the resumption of private gold clause contract enforceability in 1974 (31 U.S.C.A. § 5118) and U.S. gold and silver legal tender coin mintage beginning in 1985 (31 U.S.C.A. § 5112), Americans actually have a legitimate choice in the legal tender they choose to circulate. This act will help make such monetary choices viable alternatives for the people of Arizona.”
Four states have adopted legal tender laws such as HB 2173: Colorado (1893), Missouri (1939), Utah (2011) and Oklahoma (2014).