2012-APR-30Missouri is the latest US state that is trying to follow Utah's example by allowing physical gold and silver to be used as legal tender. According to the Constitution, gold and silver coins – such as the American Gold and Silver Eagle – should be accepted as legal tender in all of the US, but of course this has long since ceased to apply in practice. But now some members of the Missouri House of Representatives are working on simplifying the payment process with precious metals, and are hoping to introduce special gold and silver accounts for all monetary transactions done in the state.
This plan is similar to a law passed in Utah, which allows citizens to use a bank card “backed” by physical gold and silver. Such moves could presage similar moves in other states, given the increasing opposition to the Federal Reserve’s easy money policies.
In contrast to the Missouri Republican representatives – most of which support these moves – Missouri Democrats are sceptical and even opposed to simplifying the payment process with physical gold and silver. According to recent statements by the Democrats, the legislature currently has more important issues to deal with.
These are small moves at the moment, which are happening in state legislatures as opposed to Congress in Washington. Nevertheless, this could all be the harbinger of something bigger as far as American sound money is concerned.