Senate Bill 232, sponsored by Sen. Mark Abraham, marks the sixth pro-sound money bill passed by a state this year, underscoring a growing national trend.
Louisiana’s sound money bill simply affirms that “any gold or silver coin, specie, or bullion” issued by the United States government is considered legal tender whenever voluntarily agreed upon by both parties to a contract. The measure enjoyed popular support, receiving only one “no” vote on the floor throughout the Louisiana House and Senate.
This concept is consistent with the U.S. Constitution. In fact, Article 1 Section 10 reads: “No state shall…coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts…”
America’s 53-year experiment in a purely fiat currency system has gone poorly. Without backing of gold or silver, the Federal Reserve note “dollar” has continuously declined in purchasing power. The nation has faced a series of Fed-created booms caused by interest rate manipulation, followed by busts and explosive growth in government spending.
When savers, wage earners, and investors seek ways to protect their savings from the ravages of inflation, they often choose precious metals over fiat currency because precious metals have preserved purchasing power over time.
This bill provides symbolic support to Louisiana citizens making this choice, and it is a modest step toward establishing sound money policies in the state.
Alabama, Utah, Wisconsin, Nebraska, and Kentucky passed legislation in 2024 ending sales and capital gains taxes on precious metals, declaring that Central Bank Digital Currencies are not valid money in their state, or empowering state treasurers to invest state funds in gold and silver.
Louisiana is the sixth state to enact sound money laws this year, while five other states did so in 2023.
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