Just before the holiday weekend, a bill ( H.B. 1056 ) authorizing Texas to create a currency backed by gold or silver found new life (sort of).
Senator Bryan Hughes (R-TX) heavily amended the bill to address the concerns of members of the Senate Committee on Finance, who questioned the cost and complexity of implementing the measure.
The slimmed down bill would recognize gold or silver specie as legal tender, but stops short of having Texas issue its own currency. Like the Arkansas and Florida laws, it allows individuals and merchants to opt out from accepting gold or silver for payment. Further, it would provide the Comptroller with discretionary authority to “establish or authorize one or more electronic systems that… make or receive payments that are back by bullion” held in the Texas Gold Depository.
While the substitute bill is not near as harmful as an all-out competitor to the United States Dollar, it is nonetheless a perfect example of the “camel’s nose under the tent.”
Around 11:30 last evening, the Texas Senate approved the slimmed down substitute bill, clearing the way to send it back to the Texas House of Representatives, which must concur with the Senate changes to the bill. If the House does not concur, a conference committee between the two chambers will be formed to reach a compromise.
The IBAT team will be working hard to ensure that the Senate changes are upheld. Thank you for your responsiveness on issues throughout the session. Without your help and support, several harmful measures could have easily become a runaway train.
