The Potential Role of State, Provincial, and Local Governments in Providing Independent Means of Exchange: Why, What, and How

Liberty
1

Objective
Given the extreme malfeasance of the federal government, together with the banking system, in their process of money creation and allocation, which has been their primary tool for wresting power away from the people and advancing economic and political agendas which are anti-democratic, unconstitutional, and contrary to cherished American ideals of liberty and justice for all, it is essential that the control of credit, which is the foundation upon which money exists, be decentralized and returned to the people and/or their State and regional governments acting on their behalf.

The aim of this proposal, therefore, is to provide regional, state, and local economies with sources of liquidity, i.e., media for the free reciprocal exchange of value, that are independent of the banking system and the federal government and do not require use of national fiat currencies or bank credit to come into existence.

The Basic Purpose
Such independent exchange media can provide fully backed and honest payment alternatives to the increasingly inflationary, exploitative, and dysfunctional national fiat currencies that are dominant in the world today. They can enable state, local, or regional economies to thrive, and help to ensure that the fair exchange (the business of buying and selling) can continue in the face of an increasingly inflated national currency and help to insulate local economies from the turbulence of global markets and foreign exchange fluctuations.

The Means
Here is one possibility that a state or provincial government might consider implementing:

  1. The State could, in accord with the United States Constitution, declare as legal tender, a virtual coin comprised of 371.25 grains of fine silver, which was the original definition of the US Dollar when the republic was founded. No actual coins need to be minted since this virtual coin will serve only as a value standard and unit of account for state, municipal, or private credit obligations.

  2. The state can then encourage municipal governments within the state, or private businesses enterprises to issue, individually or collectively, their own credit vouchers denominated in terms of said silver dollar units by spending them into circulation as partial or full payment to suppliers of material inputs to production, and to employees and other service providers.

  3. The state government should accept said vouchers, in whole or in part, as payment for taxes, fees, and other obligations due to the state government.

  4. The state government might further consider issuing its own modified Tax anticipation warrants (TAWs) in the form of paper notes, ledger entries, or digital tokens denominated in terms of said silver dollar units. This might be done either in the conventional way of selling them to investors and receiving payment in national fiat currency, or by spending the tax anticipation warrants into circulation as partial or full payment to its vendors for their good and services, and to its employees in like manner as described in item 2 above. Unlike conventional warrants, these modified TAW would not pay interest, since they are short term notes or obligations that are intended to circulate as currency, not be held as a savings or investment medium.

People will accept these modified TAW and use them to pay one another because the warrants can be used to pay taxes and fees that are due to the issuing State government, or to pay private vendors of goods and services. When the government eventually accepts them back as payment for taxes and fees, the warrants are retired. In the interim period between their issuance and their retirement, the warrants can circulate throughout the region as an independent means of payment among the population. As the TAW mature/expire, new series of TAW may be issued in amounts that are not excessive in relation to anticipated revenues.

  1. The state or municipal government might further establish a clearing house to facilitate the clearing (offset of obligations) of the various private and public vouchers, or alternatively, encourage the establishment of such a clearing house by a cooperative or non-profit organization, or an association of private businesses.

  2. As the people-at-large come to better understand and trust the validity and benefits of these payment media, they will increasingly replace national fiat currencies in business dealing within the region and achieve a greater measure of local self-reliance and control over their own affairs.

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The United States Mint produced the first silver dollar, the “Flowing Hair” coin, in 1794 out of 89.24% silver and 10.76% copper. These coins, minted in 1794 and 1795 contained .7738 troy ounces of silver. From 1795 to 1804 a new coin, the “Draped Bust” silver dollar, was similarly minted with the same composition. What Dollar Coins Are Silver? | Silver Dollar Coins | APMEX. Accessed June 2, 2024

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