As outrage and concern over the Federal Reserve and its embattled fiat currency continue to grow, lawmakers in Missouri are considering legislation to protect residents by making gold and silver legal tender within the state. If passed, Missouri would join the state of Utah — which adopted a similar sound-money law last year — in its efforts to expand the monetary choices available to citizens.

Under the proposed law, people would still be able to refuse payment in precious metals, and nobody could be compelled to pay in gold or silver. But supporters of the bill hope to establish sound-money depositories that would allow citizens to deposit precious metals and use debit cards to pay bills out of their accounts. The competition in currency, advocates say, would usher in an array of benefits.

Known as the “Missouri Sound Money Act of 2012,” House Bill 1637 would define precious metals issued by the U.S. government as lawful money inside of the state. U.S. gold and silver coins would then essentially be valued in commerce at the true market-price of the metal instead of the largely irrelevant face value assigned by the federal government.

The legislation would also eliminate an array of state taxes on gold and silver — capital gains and sales taxes, for example — in a bid to allow honest money to circulate more freely alongside the Federal Reserve’s inflationary debt-based paper currency. Federal taxes would not be affected, however, leaving at least one significant impediment to establishing true competition among currencies.

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