In these days of unprecedented monetary activism by the Federal Reserve, including massive purchases every month of federal government debt, it’s nice to see even a fledgling amount of resistance from attentive citizens. A bill now making its way through the Virginia legislature would establish a joint subcommittee “to study the feasibility of a metallic-based monetary unit.”
Last night the House voted 65-32 to approve the bill; now it goes before the Virginia Senate. “The need to establish a sound money unit was deemed so essential for assuring the success of the United States that Thomas Jefferson personally assumed the task of defining the dollar as a fixed standard of value,” the measure notes.
“Our nation’s most fundamental principles – equal rights, rule of law, private property rights, individual liberty – still require a dependable dollar to be meaningfully preserved.”
The bill, if passed, would seek to examine the impact of the Fed’s intervention in banking and credit markets – resulting in near-zero returns on savings accounts and retirement funds – with an eye toward considering “whether a metallic basis for United States currency might engender a more stable money unit consistent with limited government.”
Are we talking about a gold standard? Too soon to tell. But the study would surely seek input from leading monetary experts and constitutional scholars sympathetic to the need for a more rules-based monetary policy – such as Lewis Lehrman and James Grant.