Arizona legislature passes bill making gold and silver legal tender money

Over concerns about the weakness of the United States dollar and the Federal Reserve’s questionable inflationary measures, Arizona lawmakers voted Tuesday in favor of making gold and silver coins and bullion legal tender in The Copper State. The bill is heading to the desk of Republican Governor Jan Brewer, who has not said if she would sign it or veto it.

If the legislation is signed into law then it would make Arizona the second state in the country to use precious metals as legal tender. The state of Utah passed similar legislation in 2011 and has set a precedent for other states, as Economic Collapse News reported in March.

The bill, S.B. 1439, received 18 yes votes, 10 no votes and two “other” in the Senate’s final reading. In the House upon the third reading, the legislation garnered 36 yes votes, 22 no votes and two “other.” If approved by the governor, precious metals becoming legal tender would begin in the middle of 2014.

Republican State Senator Chester Crandell, a sponsor of the bill, said using gold and silver for everyday exchanges is still being perfected and will require further legislation to make it completely work. Using gold and silver as currency is voluntary and it will be up to businesses to decide whether or not they will accept precious metals as a form of payment for goods and services.

Meanwhile, Democratic State Senator Steve Farley called the bill unnecessary and might be disastrous as it would create numerous problems for businesses in the state. He also cited difficulties for government officials as they handle a two-tier monetary system.

“There’s no reason for us to do this,” Farley told the House floor during the final vote on Tuesday. “This is another one of those things that gets national press for us – and not in a good way

At an earlier hearing in the Arizona legislature, Keith Weiner, president of the Gold Standard Institute advocacy group and a supporter of the bill, told lawmakers that these measures are needed at a time when the global monetary system faces insolvency.

“The dollar system and all of the other derivative currencies, including the euro, are a recipe for worldwide bankruptcy,” Weiner said, according to Reuters.