David Morgan Congratulates Governor Gary Herbert on Signing the Utah Legal Coin Act

COLBERT, WA, May 26, 2011 (Press-News.org) On June 3, 2011, David Morgan, founder of Silver-Investor.com, will travel to Utah to congratulate Governor Gary Herbert on signing the Utah Legal Coin Act. The Governor signed the law on March 25, and it marks the first time since 1971 that gold and silver will be considered legal tender in at least one part of the United States.

What does this mean for Utah residents? Well, the most significant change from a practical perspective is that the Utah now considers gold and silver coins issued by the U.S. Mint as currency rather than an asset, which means that since it is considered money it cannot be taxed at the state level. However, federal taxes still apply on these transactions.

The following are some questions asked of David in a recent interview, regarding the Utah Legal Coin Act:

1. What is this Utah Legal coin act about?
The Utah Legal Tender Act (HB 317) is designed to reinstate gold and silver coin as an optional medium of exchange in Utah intrastate commerce. The bill recognizes the inherent and inalienable right of citizens to voluntarily employ these time-tested, inflation-proof, complementary currencies to foster economic development throughout the state. The bill draws its authority from Article1, Section 10 of the United States Constitution which provides that no state shall make anything but gold and silver coin a tender for payment of debts.

2. Why do we need sound money?
Because the founders of our nation had experienced first-hand the ills attendant of unbacked fiat currency, they provided in Article 1, Section 10 of the United States Constitution that no state is to make anything but gold and silver coin tender for payment of debts. Unfortunately, we've departed from the wisdom they imparted, and embraced a medium of exchange which has no intrinsic value whatsoever. The value of today's dollar is upheld by governmental edict, backed only by the indebtedness the United States places on its citizens.

There are many instances of historical precedent for a totally fiat money system, such as ours, they never last more than a few decades, prudence dictates that alternative, sound, means of exchange be put in place well in advance of any potential crisis.

Even absent the specter of catastrophic consequences, an alternative sound money system confers many benefits on citizens and state governments alike. Such a system serves as a refuge from the ills fiat money produces, including the insidious "inflation tax" that our current monetary system imposes. Consider that the U.S. dollar has lost more than 95% of its purchasing power since decoupling from gold and silver backing. By contrast, sound money systems of the past continued virtually inflation proof for centuries on end.

3. Are there other states that are looking at something similar?
Yes. They include:
• Virginia House Joint Resolution 557
• Georgia Constitutional Tender Act
• Ohio Honest Money Project
• Idaho Silver Gem Act, Bill No. 633
• South Carolina House Bill No. 4501
• Missouri House Bill No. 561
• Washington House Joint Memorial 4010
• Colorado Honest Money Act (HB09-1206)
• Indiana Senate Bill No. 453
• Montana House Bill No. 639
• New Hampshire Gold Money Bill 1. 1.

4. Why are the states doing this, and not the Federal Government?
Because of the co-dependent relationship between Congress and the Federal Reserve, the likelihood of any sound money reform coming out of Washington is remote indeed. Individual states, exercising their sovereign authority, are best equipped to restore sound money to its prior status as a trading currency. So look for a sound money come back on a state by state basis. It makes sense to first support states that are well positioned to make sound money a reality today. Then as the movement gains momentum, reluctant jurisdictions will see the advantages of embracing sound monetary systems

5. Any place we can get more information?
For those interested please go to http://www.utahsoundmoney.org .