Virginia legislators back study into independent currency

Legislators in Virginia have backed a study into the establishment of an independent "contingency" currency which would enjoy the backing of precious metals.

Red Alert Politics reports that Virginia Del. Robert G. Marshall has proposed the formation of a 10-member commission to investigate the creation of "a metallic-based monetary unit to serve as a contingency currency for the Commonwealth."

Marshall has long pushed for the establishment of an independent currency in Virginia, introducing a much-ridiculed bill three years ago which met with emphatic rejection from the House of Delegates.

Much has changed in just the part several years, however, with America's continued economic woes finally prompting the Virginia House of Delegates to pass a bill for the study proposal, budgeted at $17,440, with a two-to-one majority.

Supporters of the independent currency consider it a hedge against inflation should the Fed expand the US money supply excessively.

While the legality of establishing an independent monetary unit by a state government remains uncertain, as under the US constitution states lack the right to mint their own currencies, Marshall believes a legal precedent exists which makes his plan a feasible proposition.

The state of Utah recognizes precious metal coins minted by the federal government as investment vehicles or collectibles as legal tender.