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Bkeepr100 (< 20)

Silver backed dollars

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August 14, 2011 – Comments (3) | RELATED TICKERS: HL , SLW , AU

Here is a good proposal on how to back the dollar with circulating silver coinage.

 Dorothy's silver shoes or the re-monetization of the silver currency of the United States of America

By: Hugo Salinas Price


Why not re-monetize the silver dollar? Re-monetization could put the silver dollar and its subsidiary silver coinage into circulation in parallel with FRNs – “Federal Reserve Notes”.

There are several reasons that make this action possible, and only one that might be considered as an unimportant material obstacle.

In favor:

The silver dollar is the money that is still the Constitutional “coin of the realm”, defined by Act of Congress as 371.25 grains of pure silver. (The Troy ounce contains 480 grains.)

The silver dollar is familiar or at least known to almost all Americans.
A considerable quantity of these silver dollars is owned by Americans.

The silver dollar is a cherished symbol of a great past.

The monetized silver dollar would ignite a desire to save such as America has perhaps never seen before. The very first thing that must be done, to encourage people to save, is to give them something worth saving. As the US government gallops toward the abyss of bankruptcy by unlimited spending, the American people desperately require a refuge for their savings!

In this writer’s opinion, a large majority of the American people can see themselves as owners of silver money and, if a poll were taken, one can imagine that most Americans would express themselves in favor of silver money. Not so with gold, towards which the American people have little emotional attachment: gold is seen as the money of the élite. William Jennings Bryan exploited this fundamental attitude of the American people with his “Cross of Gold” speech. (Note: this should not be taken as disparaging gold; it is simply the statement of an opinion about the attitude of Americans regarding gold.)

Against:

The silver dollar bears a value stamped upon it: “One Dollar”.

You can read the rest of the essay at:

http://news.silverseek.com/SilverSeek/1313345778.php

3 Comments – Post Your Own

#1) On August 14, 2011 at 7:10 PM, leohaas (29.35) wrote:

I gladby buy all your silver dollars at face value!

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#2) On August 14, 2011 at 7:13 PM, dbtheonly (< 20) wrote:

Besides all the backers of the gold currency will have fits. The gold/silver controvercy was a major one 100+ years ago. They want a god standard? We'll hit 'em with bi-metallism.

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#3) On August 16, 2011 at 12:41 PM, rfaramir (28.82) wrote:

What we want is liberty for ourselves and integrity in government.

Liberty for ourselves: Restore the right transact in any currency of our choice. Repeal all legal tender laws that force us to make contracts in a currency the government can debase at will. Many of us would choose to be paid in silver ounces, but leave it to the free market to decide, not government.

Integrity in government: Revoke Nixon's "temporary suspension" of the dollar's convertibility into gold. The rate would have to change since the supply of dollars has grown gargantuan in 40 years, but pick a new rate and fix it, whether $3500.00/oz or $40,000.00/oz depends on how you measure the quantity of dollars in existence and how much gold the US still owns. But re-fix the rate and leave it alone, forcing the government to only spend what it takes in in revenue or face gold redemption like Nixon did and have gold specie leave the country. Keep them honest from now on.

Oh, and bi-metallism is a guaranteed failure. Anytime the free market values the two metals at a rate different from the government there will be an arbitrage opportunity and the officially undervalued metal will disapear from circulation. Let gold circulate and silver circulate, but there's no need to call both (or either) of them 'dollars'.

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