Meanwhile, some state legislatures continue to dabble with the idea of bullion-based exchange.
A bill filed in the Oklahoma Senate would establish a state bullion depository. This would not only create a safe place to store precious metals; it also has the potential to facilitate the everyday use of gold and silver in financial transactions in Oklahoma and set the stage to undermine the Federal Reserve's monopoly on money.
Sen. Nathan Dahm (R) filed Senate Bill 816 (SB816). The legislation would create the Oklahoma Bullion Depository in the Office of the State Treasurer. The depository would serve as
the custodian, guardian and administrator of gold, silver and other precious metals transferred or acquired by the state, or an agency, political subdivision or other instrumentality of the state. The depository would also accept deposits of gold and silver by private individuals.
Significantly SB816 would establish a mechanism for individuals to engage in transactions using precious metals including gold and silver.
In accordance with the rules promulgated under this act, a depository account holder may transfer any portion of the balance of the holder's depository account by check, draft, or digital electronic instruction to another depository account holder or to a person who at the time the transfer is initiated is not a depository account holder.
The bill is based on a similar law that was passed in Texas and signed into law by Gov. Abbott in 2015. The Texas depository received its first deposits in the summer of 2018. The following year, the state exempted precious metals in these depositories from taxation.
A similar bill was introduced by Dahm in 2022, but never made it out of committee.
In a nutshell, through the depository, Oklahomans would eventually be able to deposit gold or silver and pay other people through electronic means or checks. Private individuals and entities would be able to purchase goods and services using assets in the vault in the same way they use cash today. Doing so has the potential to open the market to sound money in day-to-day transactions. Ultimately, depositors will be able to use a bullion-funded debit card that seamlessly converts gold and silver to fiat currency in the background. This will enable them to make instant purchases wherever credit and debit cards are accepted.
By making gold and silver available for regular, daily transactions by the general public, a depository has the potential for a wide-reaching effect. Professor William Greene is an expert on constitutional tender and said in a paper for the Mises Institute that when people in multiple states actually start using gold and silver instead of Federal Reserve notes, it would effectively nullify the Federal Reserve and end the federal government's monopoly on money.
To read the complete article, see:
Oklahoma Bill Would Create State Bullion Depository
Wayne Homren, Editor
The Numismatic Bibliomania Society is a non-profit organization
promoting numismatic literature. See our web site at coinbooks.org.
To submit items for publication in The E-Sylum, write to the Editor
at this address: firstname.lastname@example.org
To subscribe go to: https://my.binhost.com/lists/listinfo/esylum
Copyright © 1998 - 2023 The Numismatic Bibliomania Society (NBS)
All Rights Reserved.
NBS Home Page
Contact the NBS webmaster