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2008 Ron Paul Chapter 12
Statement on Coinage
Financial Services Committee
Subcommittee on Domestic and International Monetary Policy, Trade, and Technology
Hearing
on HR 5512
Opening
Statement
March 11, 2008
2008 Ron Paul 12:1
Mr. Chairman,
I oppose HR 5512 because it is unconstitutional to delegate the
determination
of the metal content of our coinage to the Secretary of the Treasury.
Under Article I Section 8 of the Constitution, the Congress is
given the
power to coin money and regulate the value thereof.
It is a shame that Congress has already unconstitutionally
delegated its
coinage authority to the Treasury Department, but that is no reason to
further
delegate our power and essentially abdicate Congressional oversight as
the
passing of HR 5512 would do.
2008 Ron Paul 12:2
Oversight by members of Congress, who have an incentive to listen to their
constituents,
ensures openness and transparency.
This
bill would eliminate that process and delegate it to unelected
bureaucrats.
The Secretary of the Treasury would be given sole discretion to
alter the
metal content of coins, or even to create non-metal coins.
Given the history of Congressional delegation and subsequent lax
oversight on issues as important as the conflict in Iraq, it would be
naïve to
believe that Congress would exercise any more oversight over an issue
as
unimportant to most members as the composition of coins.
2008 Ron Paul 12:3
While I sympathize with the aim of Section 4 of this bill to save taxpayer
dollars by
minting steel pennies, it is disappointing that our currency has been
so greatly
devalued as to make this step necessary.
At
the time of the penny’s introduction, it actually had some purchasing
power.
Based on the price of gold, what one penny would have purchased
in 1909
requires 47 cents today.
It is no
wonder then that few people nowadays would stoop to pick up any coin
smaller
than a quarter.
2008 Ron Paul 12:4
Congress’ unconstitutional delegation of monetary policy to the Federal Reserve
and its
reluctance to exercise oversight in that arena have led to a massive
devaluation
of the dollar.
If we fail to end
this devaluation, we will undoubtedly hold future hearings as the metal
value of
our coins continues to outstrip the face value.
2008 Ron Paul 12:5
HR
5512 is a sad commentary on how far we have fallen, not just since the
days of
the Founders, but only in the last 75 to 100 years.
We could not maintain the gold standard nor the silver standard.
We could not maintain the copper standard, and now we cannot
even
maintain the zinc standard.
Paper
money inevitably breeds inflation and destroys the value of the
currency.
That is the reason that this proposal is before us today.
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