Daniel Diaz

Chairman and Members of the Committee, I appreciate the opportunity to submit testimony in support of HB 721-FN, which seeks to recognize gold and silver as legal tender in the state of New Hampshire. This legislation represents a significant step toward restoring monetary choice, ensuring economic stability, and protecting the purchasing power of citizens in an era of unprecedented currency devaluation. The U.S. Constitution explicitly acknowledges gold and silver as lawful money. Article I, Section 10 states: "No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts." HB 721-FN aligns with this constitutional principle by reaffirming New Hampshire’s right to recognize sound money and fostering an economic environment where individuals and businesses can conduct transactions in precious metals—a form of money that has held intrinsic value for millennia. Why Gold and Silver as Legal Tender Matters Protection Against Inflation and Currency Devaluation The purchasing power of the U.S. dollar has declined by over 98% since the creation of the Federal Reserve in 1913. Gold and silver have historically served as stable stores of value, protecting citizens from the erosion of their wealth due to reckless monetary policy and government overspending. Financial Security and Economic Choice Granting legal tender status to gold and silver provides monetary competition, allowing businesses and individuals to opt out of the inflationary effects of fiat currency. This bill does not force any party to accept gold and silver but allows voluntary agreements, fostering free-market monetary solutions. Precedent and Practicality Several states, including Utah, Oklahoma, Wyoming, Arizona, Arkansas, and Louisiana, have already passed legislation recognizing gold and silver as legal tender, demonstrating that implementation is feasible. Goldback currency, which is circulating in New Hampshire, provides a real-world example of how gold-backed transactions can function seamlessly in a modern economy. Addressing Fiscal Concerns No Costly Government Mandate This bill does not require the state to hold, store, or transact in gold and silver; it simply allows individuals and businesses to do so by mutual agreement. Concerns about government storage costs or security measures are misplaced, as the State Treasury is not required to handle physical gold or silver under this bill. No Loss of Tax Revenue HB 721-FN does not eliminate any existing taxation. Instead, it ensures that individuals are not unfairly penalized for using constitutional money in transactions. The concern that businesses could use gold and silver transactions to avoid taxation is unfounded; gains and losses in precious metals are already subject to tax reporting, and this bill does not alter that. Enhancing New Hampshire’s Competitive Advantage New Hampshire has long been at the forefront of financial innovation and individual liberty. Recognizing gold and silver as legal tender enhances the state’s reputation as a pro-business, pro-freedom jurisdiction. It attracts investors, entrepreneurs, and sound money advocates, strengthening the state’s economy while providing citizens with a hedge against fiat instability. Conclusion HB 721-FN represents a crucial step toward restoring sound money, financial sovereignty, and economic resilience. By recognizing gold and silver as legal tender, New Hampshire can lead the nation in monetary freedom, protect citizens from inflation, and provide a legal framework for honest commerce. I urge the committee to support this bill and move it forward for passage. Thank you for your time and consideration. Respectfully submitted, Daniel Diaz Executive Director, Citizens for Sound Money ddiaz@citizens4soundmoney.org 877-749-1776 www.citizens4soundmoney.org