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Gold,Silver legal tender bill vetoed by Arizona governor

# Arizona  # gold legal tender  # silver tender  

The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.

PHOENIX(BullionStreet): Arizona's aim to become the second US state to recognize precious metals as legal tender suffered a setback as governor Jan Brewer vetoed a bill in this regard.

Earlier this week, Arizona state Senate approved the bill that would make gold and silver legal currency in the state after it got approval from the Arizona state House of Representatives.

The governor vetoed the bill saying the legislation could have resulted in lost tax revenue.

The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.

The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.

Proponents have hawked the measure as a hedge against inflation, arguing that the declining value of the dollar could make gold and silver a more stable form of capital.

Had Brewer signed the measure, Arizona would have become the second state in the nation to establish the precious metals as legal tender. Utah approved such legislation in 2011.

Lawmakers in Minnesota, Idaho, South Carolina, and other states have proposed similar laws in recent years.

Gold-backed currency neared obsolescence during World War I as the United States and many other countries printed cash to finance wartime expenditures.

The gold standard, which pegged the value of the dollar to a specified amount of gold and allowed people to exchange paper currency for gold, was formally abandoned by President Richard Nixon in 1971.

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