Ray Moore’s Statement on SC Sound Money Bill (H.4128)

Wednesday, March 5th, 2014 @ 3:10PM

Statement on H. 4128
February 23, 2012

Mr. Chairman, I am E. Ray Moore, and I want to thank you for this opportunity to speak on behalf of H. 4128. This important legislation would help to stabilize the economy in our State and is surely one of the most important pieces of legislation on economic policy for SC in years. You have an opportunity to throw an anchor down in this day of inflation and dangerous erosion of the US dollar, and an opportunity to provide protection for SC citizens and raise a standard for other states.

I am a member of the SC Sound Money Committee, a citizens’ group created in 2010 to education SC opinion leaders and to urge elected officials and legislators to pass legislation on sound money and return to the gold standard according to Article 1, Section 10 of the US Constitution. This article states, “No state can make anything but gold and silver coin a tender of payment of debts.” It’s as if the founders wrote into the document a remedy for the looming hyper-inflation and profligate spending at the federal level. The passage of H. 4128 and its accompanying S. 862 could provide economic and monetary discipline at the state level when none exists at the federal level.

The US operated on a gold standard from 1789 until August 15, 1971, when President Nixon took the nation off the international gold standard. The dollar was a stable currency until then with few exceptions, but today the buying power of the US dollar is less than 20 cents compared to the 1971 dollar.

A return to the gold standard is not just about economic and monetary policy, but is also about a moral social policy. Inflation favors the wealthy and hurts the middle class, working class, and poor. Erosion in the value of the dollar and growing inflation mean that prices and expenses rise while wages stay the same. People are scared and can’t keep up with rising prices, but sound money would protect their buying power over the years.

All the talk in both Washington, DC and in Columbia, SC about balancing budgets, controlling spending, cutting deficits, and protecting pensions is meaningless when we have an unstable dolar. No economy can work well where inflation rules and the currency is unstable. The inflation of the Weimar Republic in the 1920s helped to bring the problem solving Hitler to power, an example of the danger of rampant inflation. We can’t take our currency for granted any more than we can take clean water for granted.

Sound money is a moral and Constitutional issue. The APP ran a poll in November 2011 in SC and found that 52% of South Carolinians favor sound money and a return to the gold standard; 17% oppose and 30% are undecided. It is not routine for a public policy issue to be moral, Constitutional, and popular. It is the right thing to do. It is Constitutional. Our people are crying out for relief. I urge the Judiciary subcommittee on Constitutional issues to pass H.4128 favorably and send it on to the full committee.

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