South Carolina Legal Tender Act Would Treat Gold and Silver as Money

Tenth Amendment Center ^ | November 22, 2019 | Mike Maharrey

[Perseverando]

COLUMBIA, S.C. (Nov. 22, 2019) – A bill prefiled in the South Carolina House would make gold and silver coins legal tender in the state. Passage of this bill would take a step toward creating currency competition in South Carolina and undermine the Federal Reserve’s monopoly on money.

Rep. Stewart Jones filed House Bill 4678 (H.4678) on Nov. 20. Under the proposed law, “gold and silver coins minted foreign or domestic shall be legal tender in the State of South Carolina under the laws of this State. No person or other entity may compel another person or other entity to tender or accept gold or silver coin unless agreed upon by the parties.”

Practically speaking, this would allow South Carolina residents to use gold or silver coins to pay taxes and other debts owed to the state. In effect, it would put gold and silver on the same footing as Federal Reserve notes.

The phrase, “unless agreed upon by the parties” has important legal ramifications. This wording reaffirms the court’s ability, and constitutional responsibility according to Article I, Section 10, to require specific performance when enforcing such contracts. If voluntary parties agree to be paid, or to pay, in gold and silver coin, South Carolina courts could not substitute any other thing, e.g. Federal Reserve Notes, as payment.

South Carolina could become the fourth state to recognize gold and silver as legal tender. Utah led the way, reestablishing constitutional money in 2011. Wyoming and Oklahoma have since joined.

[M Kehoe]

Thanks for the ping.

I wonder what SC will legislate regarding cryptocurrency?

5.56mm

[Georgia Girl 2]

In Georgia you can pay your property taxes in gold or silver but thats about it. I wish they would start a state bank.

[hanamizu]

I’m not getting the point of this. U.S. gold and silver coins are now and have always been legal tender. I can take 4 pre-’64 quarters and buy a Snickers bar. Of course I’d be stupid to do it since their silver value alone is over $12. It would be even worse for me if I used a $5 gold piece. The $5 quarter eagle is still legal tender—but only for $5. It’s melt value is $350.

Foreign coins bring up their own problems. A British gold sovereign is nominally £1. At today’s exchange rate that’s $1.29. Like the quarter eagle, the gold in a sovereign is worth about $350.

[PGalt]

Thanks for the ping; posts. Very interesting. BUMP!

[itsahoot]

Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

Unfortunately quoting sections of the Constitution is about as useful, as a battered wife holding a copy of a restraining up, to weld off her husband as he kills her.

[zeugma]

Unfortunately quoting sections of the Constitution is about as useful, as a battered wife holding a copy of a restraining up, to weld off her husband as he kills her.

True dat.

[Therapsid]

off topic but I dont know where to put them...lol 12-08-2019..ocgn otnx yten and reemf....