Free Competition in Currency Act

Background Information

HOUSE:

Ron Paul (TX-14); Walter Jones (NC-3)

Read the Downsizer-Dispatch that re-launched this campaign, Ron Paul Introduces the Free Competition in Currency Act.

Read the blog post that explains the strategic importance of this bill, especially if you want to "End the Fed."

Here's a copy of the bill, with notes inserted in red letters.

111th CONGRESS

1st Session
H.R. 4248

To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.

IN THE HOUSE OF REPRESENTATIVES

December 9, 2009

Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

A BILL

To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the 'Free Competition in Currency Act of 2009'.

SEC. 2. REPEAL OF LEGAL TENDER LAWS.

(a) In General- Section 5103 of title 31, United States Code (relating to legal tender), is hereby repealed.

(b) Clerical Amendment- The table of sections for subchapter I of chapter 51 of title 31, United States Code, is amended by striking the item relating to section 5103 and inserting the following new item: `5103. [Repealed]'.

Section 5103, the part repealed by Section 2 of HR 4248, reads as follows . . .

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.

This is what we call the Honest Money portion of the bill. In 55 words it repeals the 41 words of the legal tender law, which gives the Federal Reserve a monopoly over the money supply.

Section 5103, the part repealed, reads as follows . . .

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.

SEC. 3. NO TAX ON CERTAIN COINS AND BULLION.

(a) In General- Notwithstanding any other provision of law--

   (1) no tax may be imposed on (or with respect to the sale, exchange, or other disposition of) any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion, whether issued by a State, the United States, a foreign government, or any other person; and

   (2) no State may assess any tax or fee on any currency, or any other monetary instrument, which is used in the transaction of interstate commerce or commerce with a foreign country, and which is subject to the enjoyment of legal tender status under article I, section 10 of the United States Constitution.

(b) Effective Date- This section shall take effect on December 31, 2009, but shall not apply to taxes or fees imposed before such date.

With 193 words the Tax-Free Gold component of this bill would prohibit federal and state taxes on precious metal coins and bullion. For more information on how these unfair and non-pragmatic taxes work, please refer to the US News & World Report story, "A Taxing Situation for Gold."

SEC. 4. REPEAL OF SUPERFLUOUS SECTIONS.

(a) In General- Title 18, United States Code, is amended by striking sections 486 (relating to uttering coins of gold, silver, or other metal) and 489 (making or possessing likeness of coins).

(b) Conforming Amendment to Table of Sections- The table of sections at the beginning of chapter 25 of title 18, United States Code, is amended by striking the items relating to the sections stricken by subsection (a).

(c) Special Rule Concerning Retroactive Effect- Any prosecution under the sections stricken by subsection (a) shall abate upon the taking effect of this section. Any previous conviction under those sections shall be null and void.

This is the Competitive Currency section of the bill. In 101 words it repeals the 69 words of Title 18 Section 489 of the U.S. Code, which gives the United States government a monopoly over the creation of coins for use as currency.

The section that will be repealed reads . . .

"Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined under this title or imprisoned not more than five years, or both."

A print, pdf version of HR 4248 can be found here: http://www.lewrockwell.com/paul/PAUL_022_xml.pdf