State senators voted [last] Wednesday to make gold and silver legal tender in Arizona. They persuaded Sen. Chester Crandell, a Heber Republican, to give privately minted gold and silver coins the same legal status to pay bills. The proposal, SB 1439, stems from concerns of some that the paper money is losing value.
The U.S. Constitution specifically prohibits states from creating their own currency. But supporters contend that does not preclude states from recognizing coins minted by private organizations. The legislation would not require anyone to accept these coins.
Crandell acknowledged his legislation probably is unworkable, for now. So he agreed to delay its effective date until after 2014, giving lawmakers a chance to work out any of the kinks. A final roll-call vote is needed before the measure is sent to the House.