You aren’t making a whole lot of sense. So are you saying this is an idiotic bill because Arizona cannot coin money? Or a brilliant bill since Arizona is supposed to be accepting only gold or silver?
They did not write it properly as I understand.
It would take a whole year to explain and a whole lot of reading of the founders intent. The basic is that since the states formed the federal government, nothing but gold and silver is legal tender-or currency backed by it. No state means no state, and, since the states are a union, the federal government being made up of the union, the federal government has to make regular the value so we dont have 50 different values of currency. Which actually happened in the past.
I cant do much more for you than this. You have to do your own research. Sorry.
State Currency and the First Paper Money
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From the passage of the Mint Act in 1792 through the start of the Civil War in 1861, federal currency was issued only in the form of coins, which were redeemable for silver. During this time, there was little to no regulation of state-produced currency. As a result, over 1,600 banks in various states were printing their own forms of currency. By 1861, over 7,000 different types of currency were being used in the U.S. This not only led to confusion but also caused devaluation and inflation-like effects. In July 1861, Congress passed an act authorizing the U.S. mint to print paper currency, called “greenbacks.” By 1863, the National Bank Act was passed and changed the name of the U.S. paper currency to “legal tender.” At the same time, this act put regulations in place that limited the ability of the states to print money with abandon. Upon the passage of this act, states could still print money, but they were standardized as “national bank notes” and could only be printed on paper provided by the federal government.
The Gold Standard and the Great Depression
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On March 4, 1900, Congress passed the Gold Standard Act, which tied the value of U.S. currency to gold. By the end of World War I, the U.S. was the only country that had successfully maintained the gold standard for its currency. While this was considered a success at the time, the years of the Great Depression had a severe impact on the gold standard in the U.S. To keep gold ratios to the dollar at appropriate levels, Congress continually raised interest rates throughout the 1930s. This, coupled with citizens’ tendencies to hoard gold during this period, forced the U.S. off the gold standard for the first time in three decades. By the end of the Great Depression and the start of WWII, the U.S. was back on the gold standard. During this time, most major world currencies were tied to the U.S. dollar, making the gold standard the effective system for most of the world.