A new movement seems to be in the making, as Mike Pitts’ (R-SC) proposed Bill would ban federal currency in SC:
Pitts, a fourth-term Republican from Laurens, introduced legislation earlier this month that would ban what he calls â€œthe unconstitutional substitution of Federal Reserve Notes for silver and gold coinâ€ 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 â€œfunction through gold and silver coinageâ€ and give the state a â€œbase of currencyâ€ in the event of a complete implosion of the U.S. economic system.
â€œIâ€™m not one to cry â€˜chicken little,â€™ but if our federal government keeps spending at the rate weâ€™re spending I donâ€™t see any other outcome than the collapse of the economic system,â€ Pitts said.
But one legal expert told The Palmetto Scoop that, even if it were passed, Pittsâ€™ bill would quickly be ruled unconstitutional.
â€œIt violates a perfectly legal and Constitutional federal law, enacted pursuant to the Commerce Clause of the U.S. Constitution, that federal reserve notes are legal tender for all debts public and private,â€ the expert said. â€œWe settled this debate in the early 1800s. I appreciate the political sentiment but the law is blatantly unconstitutional.â€
The federal government will naturally oppose such a law, but passage would at least allow the Supreme Court to review the constitutionality of states being allowed to coin their own money.
In our view, it couldn’t be all that bad to allow states to introduce their own currencies, backed by gold and silver within their treasuries. There may be a slight inconvenience of having to exchange currencies as you move from one state to another, unless coinage was standardized with specific silver and gold content – which seems like an excellent solution.
Perhaps if enough states banded together, they could work to pass a constitutional amendment to outlaw a federal currency altogether.
Hat tip Chris C.