States Look at Bringing Back Gold, Silver Coins
South Carolina is the latest state to propose a bill that would allow gold and silver coins to be used as legal tender.
On Wednesday, American Principles in Action, a conservative non-profit group, announced that the bill has the official support of the South Carolina Republican Party.
“The South Carolina legal tender bill follows the passage of a new law in Utah, which on May 9th became the first state in more than a century to recognize gold and silver coins as legal tender,” the group said.
“Article I, Section 10 of the U.S. Constitution specifies that the states shall not ‘make anything but gold and silver coin a payment in tender of debts,'” they continued. “With the federal government clearly abdicating its responsibility to regulate the value of money, states across the country are moving to exercise this constitutional power.”
More than a dozen other states are considering similar moves.
The state of Utah started the trend earlier this month when it recognized gold and silver coins minted by the U.S. government as money.
Rising inflation and the nation’s weak economy is leading to the new focus on gold. Tea Party leaders and conservative economists say using gold would help restrain government spending and keep the Central Bank’s power in check.