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Gold and Silver Legal Tender?

Gold and Silver Legal Tender?

Governor Jan Brewer of Arizona recently vetoed a bill that would have made gold and silver legal tender in the state of Arizona. Those backing the bill argue that voting through the measure reflected a lack of confidence in the international monetary system.

Had the bill passed, gold and silver would be considered legal tender in the state of Arizona beginning in mid- 2014. The bill however was apparently too vague, not considering transactions with Congressionally authorized collectable coins. Businesses who buy and sell collectible coins would be at an unfair tax advantage also resulting in a loss of revenue for the state.

Pushes to include gold and silver as U.S currency is largely supported by fiscal conservatives such as  The Tea Party, the American Principles Project and the Gold Standard. Opponents of the measure worry that a dual monetary system would have negative impacts on the economy.