March 24, 2010 in Idaho

Idaho silver medallion bill killed

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BOISE – Idaho is unlikely to begin minting its own silver currency any time soon.

State Rep. Phil Hart’s proposal to create an official Idaho silver medallion that could be used to pay state taxes was killed Wednesday on a 7-2 vote in a Senate committee. The bill, HB 633, also would have granted big tax breaks to certain mining industry ventures.

Hart, R-Athol, called it a “safety net, if you will, for Idahoans who might want to put their savings or their money into a precious metal and protect that from inflation.” The official state silver medallions would have varied in value with the price of silver, and would have been overseen by the state treasurer.

Sen. Joe Stegner, R-Lewiston, noted that the Senate Local Government and Taxation Committee has been rejecting all new tax breaks for specific industries. “Additionally, I can’t see any advantage of putting the treasurer in the commodities market,” Stegner said, “asking them to start establishing a marketplace of exchange for this commodity or any other commodity. … It would not benefit the state of Idaho to any significant degree.”

Hart said after the vote, “I think they overlooked the constitutional requirement that the state of Idaho accept nothing but gold and silver coin for the payment of debts. This was an attempt to ease us into just that.”

While Article I, Section 10 of the U.S. Constitution does say, “No state shall … make any thing but gold and silver coin a tender in payment of debts,” the same section also says, “No state shall … coin money.” That power, under Article 1, Section 8, is given to Congress.

Among those testifying in favor of the bill was Ralph Holton of Canyon County, who told the senators, “I think we need to start somewhere to moving towards having a backed money supply.”

State Sen. Mike Jorgenson, R-Hayden Lake, who opposed the bill, said, “I can tell you that I’m an active trader in the commodities, I follow these on a daily basis, I invest in them heavily – and putting the Idaho treasury in the position of a commodities trader would not be a healthy situation for the state of Idaho.”

Five comments on this story so far. Add yours!

• 

  Not_woriking on March 24 at 3:11 p.m.

  This was stupid from the get go. Guess he didnt stay awake during Constitution 101. Why do we vote these morons into office?

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  deacon46 on March 24 at 4:09 p.m.

  What are these people “smokin”. Time to focus on real issues that effect real pople in real time and in now time……

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  ToddHogan on March 24 at 4:43 p.m.

  Talk about your stupid ideas… just another example of a politician that is totally not focused on the issues of the day.

  I’m still looking for that magic “reset” button for our federal government- now we have to watch these guys too?

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  quisno on April 22 at 4:16 p.m.

  any state that starts the use of silver to pay taxes will be in time the beginning of ” back to the republic”. you now have fractional banking ,which means that derivitives on nonexsistant worth is now being transacted. you carry its debt on your shoulders. the use of gold and silver will break that fradulent way to place debt on you and your children. No one studies or looks into the reasons behind the Feds actions you are slaves to that system. wake up before you recieve the chains.

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  mbonnema on November 01 at 11:21 a.m.

  That’s too bad. I want to buy some Idaho silver. I think the price would be fair, the quality great and they would be accepted in trade everywhere. The first state to do this will have many investors and will enjoy monetary stability. I am not from Idaho, I wish we could mine and start this in Michigan. I am stuck with buying US minted coins at a premium, or silver rounds (don’t call them coins or you could go to federal prison). Somebody please get their state to use real money!