Reply to Thread

Message:: [QUOTE="19Lyds, post: 1132645, member: 15929"]LEGAL TENDER - "Legal tender is a medium of <a href="http://en.wikipedia.org/wiki/Payment" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Payment" rel="nofollow">payment</a> allowed by law or recognized by a legal system to be valid for meeting a financial obligation." <a href="http://en.wikipedia.org/wiki/Legal_tender" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Legal_tender" rel="nofollow">http://en.wikipedia.org/wiki/Legal_tender</a> " 15 General Description:16 This bill recognizes gold and silver coins that are issued by the federal government as17 legal tender in the state and exempts the exchange of the coins from certain types of18 state tax liability." Gold and Silver "bullion" minted by and assayed by the Federal Government, thereby insuring that 24ct gold is in fact 24ct gold or .999 fine Silver is in Fact .999 Silver, would be valid forms of "legal tender" for payment to the State with certain tax exclusions. Bullion, whether it's gold or silver from some "other" maker of such coins would not since there is no "official" assay other than from the word of the manufacturer. The term Face Value is not mentioned in the bill and as such could be assumed but truthfully, who would offer for payment a $50 gold piece at face value that actually has a market value of $1400 in gold? As for Capital Gains, I'm reading things such as a non-refundable tax credit which also cannot be carried over to future years. I also think their may be some confusion regarding exactly what constitutes the capital gains. Is it the value over face value? Is it the gain since the coin was purchased? When dealing with accepting bullion as a form of legal tender, the payer certainly could not go into the taxing agency and state that even though gold is only $1200 an ounce, he paid for the pice when it was $1400 an ounce. The same is true of silver so those differences and legal claims need to be addressed for this alternative form of legal tender. Additionally, alternative forms of legal tender, which gold and silver buliion appear to be, does not necessarily indicate the "minting" of State Produced coinage or bills backed by coinage. It simply defines Federally produced bullion as an "alternative" form of Legal Tender which may have a fluctuating "dollar" value. As for Von NotHaus's predicament, his downfall was the overall "stupidity" of the American public with regard to what are valid forms of Legal Tender. I don't believe for an instant that his coinage looked like a valid US coin (the word dollar or not, $ sign or not since Canada and Australia use Dollar on their currency and the $ sign to indicate dollar value which can be exchanged at any US Bank) and he was adament in trying to get folks to understand that it was not Federally produced money. He'd set up a network of retailers that would accept the coins at their "bullion value" and folks intending to use this form of tender with retailers "outside" of that network is what caused problems. Vaulting the coins and issuing paper certificates was probably not a real smart thing to do as well. As a side note, the $ sign did not appear on US Coinage until the introduction of the Presidential Dollars in 2007 which was well after the Liberty Dollars were produced. I suppose if you wanted to really get weird you might suspect that the $ sign was placed on the coin to bolster the governments position but thats getting way out there. At any rate, no doubt Von NotHaus was setting up an alternative form of trade or tender if you will but I don't believe for an instant that he was intending on "fooling" anybody any more than folks have been "fooled" into thinking the US Federal Reserve note has any "actual" value other than what the US Government says it has since the World Economy and governments seem to disagree. Otherwise each countries Dollar would trade or exchange at equal value. It's not really about money as much as it is about POWER and the federal government did not like having its power tested. After all, if they can't control your money then what power do they have? BTW, I know a dealer friend that has a $70 Lincoln Cent for sale. I've offered him two Silver Eagles for the Lincoln. The act is barter but the payment, if accepted, would be legal tender as he'll eventually convert the Silver Eagles into cash.[/QUOTE]

Create my FREE Account!

Log in or Sign up

Reply to Thread

Useful Searches