Day 8: U.S. Constitution
Article 1
Section. 9 (restrictions on congress)
The Migration or Importation of such Persons as any of the States now existing shall think proper to admit, shall not be prohibited by the Congress prior to the Year one thousand eight hundred and eight, but a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.
The Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it. (prevents someone being held in jail on a whim without actually being charged)
No Bill of Attainder (declaring a person to be a criminal without a trial and conviction) or ex post facto Law shall be passed (a law that punishes something that took place in the past).
No Capitation (head count), or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken (must be in proportion to state populations).
No Tax or Duty shall be laid on Articles exported from any State. (the feds can’t tax goods exported to foreign countries)
No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another; nor shall Vessels bound to, or from, one State, be obliged to enter, clear, or pay Duties in another.
No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time. (tax money cannot be spent unless there was a specific approval by the congress to spend it)
No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State. (no aristocracy or bribery of officials)
Section. 10. (restrictions on states)
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal (engage in war which may drag other states into the conflict); coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it’s inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay. (always a right for self-defense)
Question:
1) Why did the framers of the constitution declare that only gold and silver were to be used in payment of debts?
Answer:
1) Because precious metals have intrinsic value. The alternative is termed fiat money, or money that derives its value from government or law. It possesses no inherent value and when a government decides that it needs more money, it just prints more, increasing the supply, which lowers the value of every dollar in circulation. Imagine what would happen to the value of the dollar if the federal government printed trillions of dollars without precious metals to back them up and paid it to foreign countries holding our national debt. It would be akin to counterfeiting the dollar and making the paper it is printed on worthless.
In 1971, President Nixon left the gold standard and put the U.S. on fiat currency and the dollar has lost 98.7% of its value since that time.
Calculation:
100% minus ($20.67 (value of gold per ounce when we left the gold standard) divided by the value of gold today, 8/18/2012, at $1,614 per ounce)
100% – 1.3% = 98.7%
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(Featured Image by W. Scott McGill @123rf.com)
