SC Republican wants to ban federal currency

By Matt Compton at February 17, 2010 - 3:53pm
Rapid Response

SC Republican wants to ban federal currency

Republicans occasionally like to introduce wacky legislation. That's no secret, and for the most part, we simply don't have the time to cover every ridiculous-never-had-a-chance-to-make-it-to-the-the-floor bill they sponsor.

But this one's too good to ignore.

South Carolina Republican Mike Pitts, a state representative, has introduced a bill that would ban the "the unconstitutional substitution of Federal Reserve Notes for silver and gold coin" in the state:

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.

This is a fight that we as a nation have had before. Unfortunately for Rep. Pitts, it is a fight that his side lost more than a century ago. In cases stretching from 1871 to 1884, the Supreme Court repeatedly ruled that paper dollars issued by the federal government are, in fact, legal tender for all debts, public and private.

Even if constitutionality weren't a hurdle, practicality would be. The worth of gold or silver coins would constantly fluctuate with market values for the precious metals. At best, Pitts would be reintroducing the barter system to South Carolina.

Pitts has no problem with that:

"To me, something I can hold tangible in my hand I can put more value in, especially under the current rate of inflation,” Pitts said. “In the case of total economic collapse, a barter tool is going to be worth a whole lot more value than paper with ink on it."

Luckily, even Pitts doesn't think this bill has any chance at becoming a law:

"I don’t see the intestinal fortitude of this legislative body to test the federal government on Constitutional issues. One that has this much teeth in it I don’t think has the ability to pass."

But of course, that begs another question. Why is he wasting everyone's time?

Paper money and checks developed in the middle ages because carting around coins was so inconvenient. You couldn't possible run a modern economy without paper currency and its electronic equivalents. I live in South Carolina and the legislature becomes weirder and more Republican all the time.

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