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Source link: http://archive.mises.org/18348/douglas-carswells-10-minute-rule-bill-on-currency-reform/

Douglas Carswell’s 10 minute rule Bill on currency reform

September 6, 2011 by

Some interesting developments posted on the Cobden Centre blog, regarding further attempts by Douglas Carswell to reform the monetary system, following up on previous efforts. ((For further background, see my posts Baxendale’s UK Banking Reform Proposal; Cobden Centre Radio: Steve Baker MP on Austrian Economics and Banking Reform; Freebankers Debate Baxendale Banking Reform Proposal; UK Parliament Speech Invokes Mises Institute re Honest Money and Sound Banking and UK Proposal for Banking Reform: Fractional-Reserve Banking versus Deposits and Loan. Regarding Huerta de Soto’s LSE Hayek speech which discusses these issues and mentions the Carswell bill, see Jesús Huerta de Soto’s LSE Hayek Lecture on Banking Reform; Jeff Tucker’s Yesterday was a Historic Day; Lew Rockwell’s LRC post Jesús Huerta de Soto in London.))

ConservativeHome: It’s time for currency choice – and Douglas Carswell’s 10 minute rule Bill on currency reform

By Steven Baker MP, on 6 September 11

Over at ConservativeHome, I have promoted Douglas Carswell’s ten minute rule Bill on legal tender laws and currency choice:

People today have unprecedented choice. They can shop around online. They can tune into numerous television and radio channels. They can even decide between different hospitals for medical treatment.

But why are people not allowed to decide for themselves in which currency to transact their business and store their own wealth?

Today, Douglas Carswell introduces a Bill designed to make a range of different currencies legal tender in the UK. It would mean that, with the click of a mouse, people would be able to store wealth and pay taxes in a range of different currencies of their choice.

The BBC are covering it here. Read the full article.


Timely call to open up UK legal tender laws

By Dr Tim Evans, on 6 September 11

According to some media sources Douglas Carswell MP is today brining a bill to the House of Commons that aims to demonopolise the UK’s legal tender laws. Very much a sign of the times, I believe you will hear a lot more about this idea in the days and weeks ahead. Already, the BBC has picked it up here.

A Conservative MP is to call for a basket of foreign currencies to be made legal tender in the UK.

Such a move would protect savers by allowing them to hold the currency least likely to be devalued, Douglas Carswell will argue in the Commons.

And it would allow consumers to shop around for the best currency deal – perhaps via a smart phone application – when buying goods in shops or online.

Read the whole article.


billwald September 6, 2011 at 12:02 pm

In the US, doesn’t “legal tender” pragmatically refer to paying taxes and assessments? For example, some businesses along our Canadian border accept Canadian dollars at face value. They don’t ask the nationality of their customers. If businesses in Bellingham, WA, decided to price goods in Canadian dollars, no law against it.

Joshua September 6, 2011 at 12:38 pm

I would like someone in the know to clear this up as well.

On wikipedia (http://en.wikipedia.org/wiki/Legal_tender#United_States) it states:

“the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled “Legal tender,” which states: “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues.” There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.”

But I don’t gather from this that it necessarily means a private business can conduct business in a foreign currency legally, just that it may make restrictions as to denominations and forms of US currency it will accept.


J. Murray September 6, 2011 at 1:20 pm

Current practices dictate otherwise. Private currency providers are routinely arrested, imprisoned, and have their currency property confiscated under counterfeit claims despite bearing no resemblence or in any other way possibly confused with currency provided by the Federal Reserve.

Don’t let the part about not being required to accept pennies open up the assumption that a business can accept gold coins or other forms of private, competing currency. They’re effectively barred from accepting anything but US printed currency for transactions, be it a direct purchase using it or an indirect purchase (credit card, via intermediary gift certificate transaction, etc). Holding foreign fiat currencies is highly discouraged since changes in the valuation are called “profits” and taxed.

Joshua September 6, 2011 at 4:23 pm


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