Author Archives: Thomas H. Greco, Jr.

There is a bill pending in the Idaho legislature to make gold and silver legal tender. A recent article describes the bill and mentions that, “The passage of H177 would make Idaho the sixth state to recognize gold and silver as legal tender, as they always should have been doing.” The article also states that “Utah led the way, reestablishing constitutional money in 2011. Wyoming, Oklahoma, Arkansas, and Louisiana have since joined.” If six states can do it, why not every state?

Simply citing these examples should pique the interest of people everywhere to learn about our national money system and why the States are taking such actions. What is the point of declaring gold or silver to be legal tender? Isn’t the US dollar already legal tender? What’s wrong with that? It is questions such as these that have been the focus of my work for the past 45 years, questions that I have answered in great detail in my various books, articles, lectures and interviews, all of which have been posted on my website and on my various other channels[1]. The bottom line is this—our national system of money and banking, along with that of virtually every other country in the world, is deeply flawed and destructive[2]. But there is plenty that can be done about it—by we the people, by small- and medium-sized businesses[3], and by lower levels of government.

In this article I will discuss what the States can do to help liberate what I call the “credit commons” and restore “Constitutional” and honest money to various levels of our economy. The declaration by State governments of gold or silver as legal tender is important, not because metallic money will circulate widely, but because it establishes a proper measure of value and unit of account in which to denominate credit obligations which are the true media of exchange. Coins do not even need to be minted to serve that purpose, they only need to be defined, for example, as a specified weight of silver of some specified fineness. The definition that seems most appropriate to adopt is the original definition of the US Dollar that was established early in the history of the United States. I related that bit of history in the new, revised edition of my book, The End of Money and the Future of Civilization:

“To complete the task of defining the monetary unit for the United States in a way that would not disturb commerce, a committee was commissioned to survey the money stock and assay a representative sampling of Spanish dollar coins so that the American dollar would closely approximate those coins already in circulation. This was easily accomplished, and it was quickly settled that the United States dollar should be defined as a silver coin containing 371.25 grains of fine silver. Coins were subsequently minted according to that specification along with gold coins valued in dollars. As the country developed, various expedients were implemented to make money more abundant[4].”

Once such a standard gets established somewhere, it will be widely adopted elsewhere, and that may eventually lead to a more stable composite standard being defined and adopted[5].

Once a State defines a commodity like silver to be legal tender, it can then encourage municipal governments or private businesses enterprises within the state to issue, individually or collectively, their own credit voucher notes 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 who must be paid. Those vouchers can then circulate widely as money to settle the obligations that others in the economy have to one another. The state government could also accept said vouchers, in whole or in part, as payment for taxes, fees, and other obligations due to the state government, and the state government might even 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.

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 among the population of the region as a means of payment that is independent of the federal Government, the Federal Reserve, and the banks that issue US dollars. As the TAW mature/expire, new series of TAW may be issued in amounts that are not excessive in relation to anticipated revenues.

As the people at large come to better understand and trust the validity and benefits of these payment media, they will increasingly use them in place of national fiat currencies in business dealings within the region, and in doing so will achieve a greater measure of local/regional self-reliance and control over their own affairs.

[1] See my posts on YouTube, Medium, and Substack.

[2] See these revised chapters of my book, The End of Money and the Future of Civilization, Chapter 4:

Central Banking and the Rise of the Money Power, and Chapter 6: Usury, the Engine of Destruction.

[3] Ibid. See especially, Chapter 11, Credit Clearing: the “Un-Money”, and Chapter 12. How to Solve the Money Problem.

[4] Chapter 9—The Evolution of Money—From Commodity Money to Credit Money and Beyond

[5] See, An Objective Composite Standard Measure of Value.