How to implement gold money?

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katangus's picture
katangus
Status: Member (Offline)
Joined: Oct 11 2008
Posts: 2
How to implement gold money?

I found this site.

It has much of the crash course ideas, and elaborates of especially the consept of implementing gold as money.

http://www.gold-eagle.com/editorials_05/wallenwein012605.html

It is from 2004, so a few have been seeing in the cards back then where all this fiat money in the end will lead to.

Only problem, how do we get started using gold as money?

GDon's picture
GDon
Status: Bronze Member (Offline)
Joined: Apr 2 2008
Posts: 86
Re: How to implement gold money?

As another reference, you can check out this "tabular summary" of "Commodity Money" (gold & silver) vs. Fiat-currency:

http://www.gold-eagle.com/editorials_01/parks021701pv.html

I also strongly suggest reading of Dr. Edwin Vieira's papers, on the role of the US Constitution and Consitutional principles (readings of the early Congress'), with respect to the official Money of the United States.

His official website is here:

http://www.edwinvieira.com/

Dr. Vieira, PhD, J.D., is a Constitutional Lawyer, holder of 4 degrees from Harvard, and has successfully argued several cases before the United States Supreme Court.  He is a foremost "expert" on Constitutional monetary issues, and is a staunch advocate of "honest money" (i.e., redeemable curreny and NOT fiat currency).   In this area, he is also knowledgeable in the construction of the Federal Reserve and US monetary history.

I can think of no better "expert" on the subject.

This article, http://home.hiwaay.net/~becraft/VieraTexasLawReview.pdf is his paper for the Texas Law Review, entltled "THE FORGOTTEN ROLE OF THE CONSTITUTION IN MONETARY LAW".

As my more illiterate summary;

The US Constitution, and constitutional principles already (i.e., "right now") define our currency.  

It is simply that Congress, and the US Government in total, no longer follows the US Constitution, nor constitutional principles. 

The US Constitution refers to the official unit of currency of the United States as "dollar", in Article I, Section 9 clause 1. 

While the Constitution doesn't specifically "define" what a dollar IS, on July 6, 1785, Congress resolved that “the money unit of the United States of America be one dollar" (the Spanish silver milled "dollar" was the most currency of the time).

Then, on April 8, 1786, the Board of Treasury reported to Congress, on the establishment of a mint for the United States:

"Congress by their Act of the 6th July last resolved, that the Money Unit of the United States should be a Dollar, but did not determine what number of grains of Fine Silver should constitute the Dollar.  We have concluded that Congress by their Act aforesaid, intended the common Dollars that are Current in the United States, and we have made our calculations accordingly.  ///  The Money Unit or Dollar will contain three hundred and seventy five grains and sixty four hundredths of a Grain of fine Silver.  A Dollar containing this number of Grains of fine Silver, will be worth as much as the New Spanish Dollars

On August 8, 1787, Congress adopted this standard as the money unit of the United States. 

Perhaps unfortunately, those acts of the Continental Congress, also tried to  the "common" gold coins (of the time) to the official Silver Dollar (375 64/100 grains silver), but only offered that they be equal to either "5 dollars" or "10 dollars", creating a point for further debate on the role of gold.

Shortly after the Constitutional Convention, at the bequest of Alexander Hamilton (who was in charge of establishing the US Mint), it was agreed, that the United States should adopt a "bimetallic money standard", using both silver AND gold.

The original "dollar", was, in fact, already defined.  However, Hamilton (who we can no longer argue with...) wanted gold included as part of the US monetary system.   These gold coins were referred to as "Eagles" (and NOT) "Dollars".

This resulted in the final "Coinage Act of 1792", defining a bimetallic system using both silver and gold.

To quote Edwin Vieira:

"In sum, the Coinage Act of 1792 demonstrates the first Congress's adherence to the common law and constitional principles elucidated heretofore.  Congress coined American "Dollars or Units" as Money containing the intrinsic value of silver in a constititional dollar (i.e., a Spanish milled dallar as was then current).  It coined American Eagles as Money containing a fixed weight of pure gold and regulated their value in dollars by comparing their intrinsic value in (or weight of) fine gold to the market equivalent of coined silver.  It gave both silver and gold coins legal tender character for their intrinsic values in all payments.  It opened the mint to free coinage of the precious metals, and it outlawed debasement of the nation's new Money."

I would also suggest a view of some of his other writings on this (and other similar) subjects.

katangus's picture
katangus
Status: Member (Offline)
Joined: Oct 11 2008
Posts: 2
Re: How to implement gold money?

Thanks for the readings. I will study them more closely in the days to come, but still, how does we, the people, promote gold as money? Will it really take the whole system to collapse before it sinks in with the politicians? or could one hope for a gradually move toward gold, co-exixting for a while along with the fiat system?

Chris referred to some gold dealers, however it seems as if they all take close to 10% handeling and profit fee. And that is still a hard to accept. I mean thats quite a bit after all. I would probably get started buying approx. for 20.000 USD in gold,but if I loose 2.000 USD in the process, I not sure it the best way.

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