In a Jeopardy! Telecast earlier this week, the William Jennings Bryan “Cross of Gold” speech was an answer, or to be more exact with Jeopardy, a question. There are many who bemoan the fact, however, that we are no longer tied to gold as the basis of our money supply. Our money is actually tied to the debt—the bigger the debt, the bigger the money supply. Increase money supply (numerator) and don’t increase productivity (denominator) and your money is worth less or in the extreme, worthless.
A hallmark of the 9/12 groups and of maverick candidates like Ron paul is a concern about the sustainability of our monetary system and the impact which the federal reserve has on it and the economy as a whole.
Independent candidate Jake Towne, who is seeking the seat held by Charlie Dent, R-15PA, in the House of Representatives issued a press release yesterday. It appears below:
PRESS RELEASE – Jake Towne’s Sound Money and Jobs Announcement
For immediate release
Jake Towne, independent candidate for US Congress in PA-15, today announced his support of HR 4248, the Free Competition in Currency Act of 2009, and urges the current incumbent to co-sponsor the bill.? The short 374-word bill is in line with the campaign’s theme of sound money and would revoke legal tender laws enabling Americans to use other currencies if they so choose to compete with the unbacked script currency issued by the Federal Reserve.
Towne just released his “Sound Money and Jobs” campaign plank which explains to all residents the dire importance of sound money, and provides evidence linking the troubles of the American economy to the governments’ actions to devalue the dollar and suppress the gold price.? While unknown to most Americans, gold is one of the world’s largest financial markets, trading over $20 billion USD per trading DAY on the London exchange alone.
The campaign’s last “Towne” Hall was well attended by many newcomers, and the next event open to the public at no cost is Monday, February 1, 2010 at the Bethlehem Township Community Center, 2900 Farmersville Road at 7 PM.Towne is not endorsed by nor affiliated with the sponsor of HR 4248, Pennsylvania-born Dr. Ronald Paul.? Paul also recently introduced HR 1207, a bill to audit the Federal Reserve – which has never been thoroughly audited since its founding in 1913.
Towne successfully petitioned the incumbent Congressman for several months before he agreed to co-sponsor this no-brainer piece of legislation and hopes the same can be done here.
January 21, 2010
Contact: Jake Towne, 610-392-8156
Towne expressed support for HR 4248. This is the Bill:
To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Free Competition in Currency Act of 2009’.
SEC. 2. REPEAL OF LEGAL TENDER LAWS.
(a) In General-
Section 5103 of title 31, United States Code (relating to legal tender), is hereby repealed.
(b) Clerical Amendment- The table of sections for subchapter I of chapter 51 of title 31, United States Code, is amended by striking the item relating to section 5103 and inserting the following new item:
SEC. 3. NO TAX ON CERTAIN COINS AND BULLION.
(a) In General- Notwithstanding any other provision of law–
(1) no tax may be imposed on (or with respect to the sale, exchange, or other disposition of) any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion, whether issued by a State, the United States, a foreign government, or any other person; and
(2) no State may assess any tax or fee on any currency, or any other monetary instrument, which is used in the transaction of interstate commerce or commerce with a foreign country, and which is subject to the enjoyment of legal tender status under article I, section 10 of the United States Constitution.
(b) Effective Date- This section shall take effect on December 31, 2009, but shall not apply to taxes or fees imposed before such date.
SEC. 4. REPEAL OF SUPERFLUOUS SECTIONS.
(a) In General- Title 18, United States Code, is amended by striking sections 486 (relating to uttering coins of gold, silver, or other metal) and 489 (making or possessing likeness of coins).
(b) Conforming Amendment to Table of Sections- The table of sections at the beginning of chapter 25 of title 18, United States Code, is amended by striking the items relating to the sections stricken by subsection (a).
(c) Special Rule Concerning Retroactive Effect- Any prosecution under the sections stricken by subsection (a) shall abate upon the taking effect of this section. Any previous conviction under those sections shall be null and void.
Seldom is legislation so short that you can print it in an article. Maybe Ron Paul could write the health care bill.
The Bill, succinctly, would make the precious metals listed true legal tender rather than tangible assets. Today, if you buy one of those metals and then sell it, you realize a gain or loss. Profits and loss from speculation in these metals are taxable the same as profits or losses from the sale or exchange of foreign currencies. You don’t have a taxable exchange when your greenbacks go up or down in value and you spend them. This bill would simply put those metals on par with greenbacks in being a “functional currency” in tax-speak. Dollars would remain but if you decided to translate your dollars into gold, silver, etc., you could do so and when you later exchanged it for goods, services or currency, you’d have no taxable event.
The problem, if there is one, is that it will encourage the already hold metal speculation market. Despite the bill, the supply of these metals is such that dollars will still remain the currency of choice. It does not back the currency with gold and so in the end it simply gives those who decide to invest in one of these metals a potential windfall if the metal is later converted back to greenbacks (actually or through purchases of goods and services denominated in our currency) at a gain. Conversely, the tax benefit is lost on conversions at a loss.
The intent is to make it easier for people o flee the greenback for hard metals. As tax policy, I am not convinced it makes sense. However, I am happy to set it forth because a candidate has addressed it.
I’ll post any comments from Charlie’s camp and if Callahan discovers this column, from his as well.