"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Thursday, June 12, 2014

Oklahoma Reaffirms Gold and Silver As Legal Tender

Liberty Quarter Eagle. First introduced in 1840.

The GOP Moves to Sound Money
The Republican legislature and Governor of Oklahoma
have taken a stand for Gold.

Oklahoma GOP Governor Mary Fallin has signed a bill into law that declares gold and silver as legal tender within the state.

Signed last week, Senate Bill 862 (SB862) was introduced by Sen. Clark Jolley and Rep. Gary Banz, with co-sponsorship from Sen. Natham Dahm. It reads, in part:

Gold and silver coins issued by the United States government are legal tender in the State of Oklahoma. No person may compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract.

The law also provides a state-level tax exemption to Oklahoma residents exchanging their precious metals for another medium of change:
For taxable years beginning on or after January 1, 2015, there shall be exempt from Oklahoma taxable income, or in the case of an individual, the Oklahoma adjusted gross income, any amount of net capital gains, as defined in 26 U.S.C.A., Section 1222 of the Internal Revenue Code and included in the federal income tax return, which result from the sale or exchange of gold or silver for another form of legal tender.
Oklahoma has become the second state to recognize gold and silver as legal tender authorized for payments of debts and taxes. Earlier this year, the Arizona senate also passed a similar bill by a vote of 18-12, but that bill has stalled in the state house reports the Tenth Amendment Center.

Previously, all debts and taxes in Oklahoma and the rest of the United States were either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” This law is an important step towards that constitutional requirement which has been ignored for a long time in every state of the country. It begins the process of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the State and local levels.

The passage of this legislation also marks the beginning of currency competition between precious metals and Federal Reserve Notes in the state of Oklahoma. Professor William Greene explains:

Back in the olden days of 1896 Republicans stood tall for sound money,
the gold standard and against endless money printing.
(Presidential election of 1896)

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