Constitutional Tender Act testimony before the banking subcommittees of the Georgia House
March 24th, 2009Today was exciting. Between the hours of 10 am and 12 pm, several Citizens stood up and spoke in favor of the Constitutional Tender Act (full text). The first was Representative Bobby Franklin, then Dr. Bill Greene, Aaron Krowne, me, Sean Mangieri, and Franklin Sanders. Hopefully the video will go up soon and I will be able to edit this post to include it. The most encouraging part was the sincere and honest thought and questions coming from the subcommittees. “Here’s my understanding of wealth…” and “will there be enough money?”
Also, the banking lobby had some good questions about mechanics, while their arguments against the bill were always preceded with “I’m not a Constitutional lawyer.” And their arguments against it were pretty weak too. In the end, it doesn’t matter how weak their arguments before the committee are, it matters how much money they give to the legislators, so the bill might go nowhere. But I could see the wheels turning in the subcommittees. Today was a victory.
My testimony included tangible coins. I introduced the gold eagle coin, the silver eagle coin, silver quarters, and silver dimes to the subcommittee (covering all the accounts in the bill), then I proceeded with the following testimony:
There are no fancy letters after my name so allow me to introduce myself. I am a software developer. I have lived and worked in Atlanta for nearly four years. While my coworkers were taking out five year loans to get brand new Nissans, I bought a 1994 Saturn with 1600 dollars cash. While my friends were taking out 30 year Adjustable Rate Mortgages with payments they could barely afford, I rented a room in a house with other people. While others were living off their credit cards, I was paying off any credit card debt I had and I was building an emergency fund. In other words, I was always a little uncomfortable with the debt-based, faith-based economy. Now we have all seen some consequences of too much spending and borrowing, and not enough saving. When I was laid off from my job several weeks ago, my decisions to save and live frugally paid off. My point is to offer myself some credibility before making a statement in support of the Constitutional Tender Act.
I encourage the committee to support the Constitutional Tender Act for two reasons. The first is respect for the Constitution of the United States. The second is concern for the future of Georgia and her banking institutions.
The Constitution of the United States recognizes sovereignty of the states in article ten of the Bill of Rights. However, the states are forbidden to make “any Thing but gold or silver Coin a Tender in Payment of Debts” in Article I section 10. The central government is given no power to make a tender at all. Furthermore, on August 16, 1787 a motion to strike out the power of Congress to “emit bills on the credit of the U. States” carried nine to two. All the discussion regarded “bills of credit” to be “paper money.” Article I section 8 of the Constitution allows Congress the power to “Coin money” which obviously concerns coins and not paper. Indeed, why would the founders grant the Congress the power to create money that the States would be forbidden from making a tender? Despite Washington DC’s ignorance and hostility to the Constitution of the United States, we in Georgia have an obligation to do our best to follow it. The Constitutional Tender Act is a good start at compliance with the Constitution.
I am worried that the banks of Georgia may protest the Constitutional Tender Act on the grounds that it creates compliance costs. My hope is that they will see the wisdom in the act, as it will allow banks in Georgia to continue operating under dire circumstances. In the short term, compliance will require some work. In the long term, I urge the banking sector to consider the case of wholesale dollar rejection. If foreign creditors, the Federal Reserve, and the Congress allow the US dollar to collapse, people will probably not deposit their paper money into banks. This act does nothing to stop the current business of dealing with paper money, but it offers a future benefit for banks who comply with it. Banks already offering an alternative to dollar-only accounts will be ahead of the curve in what is shaping up to be a currency crisis. It should be noted that the act offers no prohibition on fees to open or hold an account denominated in Constitutional money. Obviously the banks must maintain profitability, so I would not expect them to offer safekeeping of money for free.
In conclusion, it is in the interest of the people of Georgia and the banks in Georgia to support the Constitutional Tender Act.
State Representative Bobby Franklin’s quick summary:
Representative Bobby Franklin’s introduction and Q&A:
Dr. Bill Greene’s testimony:
Aaron Krowne’s testimony:
My testimony:
Sean Mangieri’s testimony:
Franklin Sanders’ testimony: