The Morgan Report Blog

States (Rights) get it Right-Utah leads…

I just returned last week from the Utah Monetary Conference, celebrating the passage of a law to permitting gold and silver based currency. This gathering may go into the history books decades in the future as being historical. Why? Because Utah is the first of the several states to bring real (honest) money back to the people of their state.

During my first presentation, I mentioned  eleven other states that  have had similar proposals which have not yet passed into law.  Most of the time these were “stuck” in committee. So, Utah is not the first with the proposal but is first for implementation. In my view this could set a trend, where states enact legislation that is similar to Utah’s and the trend begins.

The lawmakers of Utah deserve a big congratulation. I was at the ceremonial signing earlier this year and  met with the gentleman that wrote the bill, and the legislator that pushed it through.

The conference brought together lots of the “gold guys” not only in the U.S. but from Europe and Asia as well, where there are efforts to introduce parallel gold-linked currencies especially in Switzerland and Malaysia. I was probably the only “silver” guy in the mix, but it was quite clear that gold and silver were used by almost all the speakers during their respective presentations.

I have been to numerous gold shows and resource investment conferences in the past several years, but one like this that  focused on public policy is something rare indeed—especially when it involves the precious metals coming back full circle and being used as money.

 For those outside the “goldbug” realm it might seem interesting but there are actually a few gold-linked electronic payment systems already available. James Turk’s goldmoney.com for an example. In fact James was one of the featured speakers at this event.

Here is a list of speakers with associated links…

James Turk — Gold Money <http://utahmonetarysummit.com/items/index/232>

David Morgan — The Morgan Report <http://utahmonetarysummit.com/items/index/150>

Sean Fieler — Equinox Partners & American Principles Project <http://utahmonetarysummit.com/items/index/185>

Dr. Edwin Vieira, Esq. — Constitutional Law Attorney and Scholar <http://utahmonetarysummit.com/items/index/230>

Dr. Richard Ebeling — Northwood University, Midland, Michigan <http://utahmonetarysummit.com/items/index/231>

Dr. Olivier Ledoit — University of Zurich <http://utahmonetarysummit.com/items/index/245>

Dr. Michael Thomas — Utah State University <http://utahmonetarysummit.com/items/index/236>

Bill Still — Author/Filmmaker <http://utahmonetarysummit.com/items/index/152>

David Garrett — Garrett Capital <http://utahmonetarysummit.com/items/index/250>

Tom Selgas — Attorney and Monetary Policy Expert <http://utahmonetarysummit.com/items/index/228>

Jeffrey Bell — Gold Standard 2012 <http://utahmonetarysummit.com/items/index/155>

Charles Kadlec — American Principles Project <http://utahmonetarysummit.com/items/index/237>

Savneet Singh — Gold Bullion International <http://utahmonetarysummit.com/items/index/240>

Phil Hart — Idaho House of Representatives <http://utahmonetarysummit.com/items/index/234>

Brad Galvez — Utah House of Representatives <http://utahmonetarysummit.com/items/index/153>

Sean Reyes — Secure American Gold Exchange <http://utahmonetarysummit.com/items/index/227>

Curt Bramble — Utah Senate <http://utahmonetarysummit.com/items/index/183>

Ken Ivory — Utah House of Representatives <http://utahmonetarysummit.com/items/index/226>

Larry Hilton — Citizens for Sound Money <http://utahmonetarysummit.com/items/index/151>

Rich Danker — American Principles Project <http://utahmonetarysummit.com/items/index/186>

GoldMoney Foundation <http://utahmonetarysummit.com/items/index/242>

American Principles Project <http://utahmonetarysummit.com/items/index/221>

Garrett Capital <http://utahmonetarysummit.com/items/index/243>

Equity International <http://utahmonetarysummit.com/items/index/181>

Atlas Economic Research Foundation <http://utahmonetarysummit.com/items/index/181>

OldGloryMint.com <http://utahmonetarysummit.com/items/index/140>

USGD.com <http://utahmonetarysummit.com/items/index/241>

Secure American Gold Exchange <http://utahmonetarysummit.com/items/index/244>

To give the reader some idea of the scope of the day here were some of the key breakout sessions.

Monetary Roles of Precious Metals — Yesterday and Today

Monetary Policy – The Proper Role of Government

Fiat Currencies in Theory and in Practice

Monetization and Legal Tender Laws

Physical and Virtual Currency — Complementary or Competitive?

Coin Depositories – A New Type of Financial Insitution?

Lunch Session – Natural Money & Concurrent Constitutional Monetary Authority

Booms, Busts and Monetary Policy

State Monetary Authority – Scope and Limitations

Risks and Rewards of Multi-Currency Banking

Multi-Currency Tax Policy and Collection

Discretion, Rules and the Invisible Hand

Monetary Civil Rights

Dinner Session – The Case for Choice in Currencies

Signing Ceremony – Declaration of Sound Monetary Principles

Conducted by Larry Hilton and Representative Brad Galvez.

At the conference, we signed a “Utah Monetary Declaration,” which states:

Utah Monetary Declaration
WHEREAS, money, as a medium of exchange, a store of value, and a unit of measure promotes economic activity, growth and productivity by facilitating specialization and trade, the accumulation of wealth and its long-term investment, as well as accountability in setting prices, tracking progress, and settling accounts;

WHEREAS, natural money – precious metal coin – by virtue of its inherent qualities of recognizability, measurability, uniformity, divisibility, durability, portability and scarcity has reliably retained its purchasing power, notwithstanding periodic fluctuations, over the centuries and millennia of human history, serving as an effective medium of exchange and store of value often without any governmental declaration to require, legitimize or perpetuate its adoption and operation as such;

WHEREAS, sound money, by retaining stable purchasing power over time, best serves societal needs by substantially reducing the uncertainty of inflation risk for creditors and deflation risk for debtors as well as encouraging saving and investment among the general populace and benefiting the economic zone in which it circulates by stimulating the economy and by attracting foreign capital and commerce to the region;

WHEREAS, history attests that monopolistic monetary systems frequently engender currency debasement, resulting in serious consequences such as lost purchasing power, inequitable wealth redistributions, misallocation of productive resources, and chronic unemployment, and that, as the cornerstone of a free market and society, the right to choose, whether between suppliers of goods and services, political parties and candidates, or between alternative media of exchange, effectively promotes the general welfare;

WHEREAS, for the equal protection of all people, rich and poor, the open circulation of complementary and competing currencies should be fostered and promoted by every sovereign state, including those of The United States of America pursuant to their monetary powers (expressly reserved in article 1, § 10 and in the 10th amendment of the United States Constitution) to monetize gold and silver coin as an alternative, voluntary medium of exchange, and as an effective check and balance against debasement of the national currency by the national government which is constitutionally precluded from demonetizing state legal tender, through disparate tax treatment, discriminatory regulation, the threat of suppression and seizure, or otherwise;

NOW THEREFORE, we the undersigned hereby declare and affirm that:

1.     As an essential element of true liberty and of the pursuit of happiness in a free society, all people enjoy the inherent and unalienable right to lawfully acquire, hold and use as a medium of exchange whatever form or forms of money they may prefer, including especially gold and silver coin.

2.     All free and sovereign states bear the moral, political and legal obligation not only to refrain from debasing their own currencies (except under the most exigent circumstances) and from erecting barriers to the unfettered circulation of monies issued under the authority of their sovereign trading partners, but also to affirmatively defend and protect against fraud, counterfeiting, uttering, passing off, embezzlement, theft or neglect by requiring full transparency and accountability of all state chartered financial institutions.

3.     No tax liability nor any regulatory scheme promoting one form of money over another should apply to: (a) the holding of any form of money, in a financial institution or otherwise; (b) the exchange of one form of money for any other; or (c) the actual or imputed increase in the purchasing power of one form of money as compared to another.

4.     Except in the case of governmentally assessed taxes, fees, duties, imposts, excises, dues, fines or penalties, the authority of government should never be used to compel payment of any obligation, contract or private debt in any specific form of money inconsistent with the parties’ written, verbal or implied agreement, or to frustrate the intent of contracting parties or impair contractual obligations by invalidating the application of a discount or surcharge agreed to be dependent upon the particular medium of exchange or method of payment employed.

5.     The extent and composition of a person’s monetary holdings, including those on deposit with any financial institution, should not be subject to disclosure, search or seizure except upon adherence to due process safeguards such as requiring an adequate showing of probable cause to support the issuance by a court of competent jurisdiction of a lawful warrant or writ executed by legally authorized law enforcement officers.

We hereby urge business leaders, educators, members of the media, legislators, government officials as well as judicial and law enforcement officers to use their best combined efforts to reinstate and promote the legal and commercial framework necessary to establishing and maintaining well-functioning, sound monetary systems based on choice in currency.

The signatories hereto concur in the general principles expressed in the foregoing declaration notwithstanding specific reservations some may have as to how such principles should be interpreted and applied in practice.
Here’s the text of the actual Utah state law:

HB0317501 http://le.utah.gov/~2011/bills/hbillint/hb0317s01.htm

Time will tell how far this bill will go in reestablishing honest money in the affairs of the public.

David Morgan

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