[Congressional Record (Bound Edition), Volume 153 (2007), Part 25]
[Extensions of Remarks]
[Page 34392]
[From the U.S. Government Publishing Office, www.gpo.gov]




            INTRODUCING THE FREE COMPETITION IN CURRENCY ACT

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                             HON. RON PAUL

                                of texas

                    in the house of representatives

                      Thursday, December 13, 2007

  Mr. PAUL. Madam Speaker, I rise to introduce the Free Competition in 
Currency Act. This act would eliminate two sections of U.S. Code that, 
although ostensibly intended to punish counterfeiters, have instead 
been used by the Government to shut down private mints. As 
anticounterfeiting measures, these sections are superfluous, as 18 
U.S.C. 485, 490, and 491 already grant sufficient authority to punish 
counterfeiters.
  The two sections this bill repeals, 18 U.S.C. 486 and 489, are so 
broadly written as to effectively restrict any form of private coinage 
from competing with the products of the United States Mint. Allowing 
such statutes to remain in force as a catch-all provision merely 
encourages prosecutorial abuse. One particular egregious recent example 
is that of the Liberty Dollar, in which Federal agents seized millions 
of dollars worth of private currency held by a private mint on behalf 
of thousands of people across the country.
  Due to nearly a century of inflationary monetary policy on the part 
of the Federal Reserve, the U.S. dollar stands at historically low 
levels. Investors around the world are shunning the dollar, and 
millions of Americans see their salaries, savings accounts, and 
pensions eroded away by rising inflation. We stand on the precipice of 
an unprecedented monetary collapse, and as a result many people have 
begun to look for alternatives to the dollar.
  As a proponent of competition in currencies, I believe that the 
American people should be free to choose the type of currency they 
prefer to use. The ability of consumers to adopt alternative currencies 
can help to keep the Government and the Federal Reserve honest, as the 
threat that further inflation will cause more and more people to opt 
out of using the dollar may restrain the government from debasing the 
currency. As monopolists, however, the Federal Reserve and the Mint 
fear competition, and would rather force competitors out using the 
federal court system and the threat of asset forfeiture than compete in 
the market.
  A free society should shun this type of strong-arm action, and the 
Free Competition in Currency Act would take the necessary first steps 
to freeing the market for competing currencies. I urge my colleagues to 
support this bill.

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