Remonetize the Silver Dollaron August 29, 2011 at 19:30
One solution to the current economic crisis in America is to remonetize the silver dollar. This will help to circulate silver coinage in line with Federal Reserve Notes. For a number of reasons it is possible to do this and there are an equal amount of reasons why this is a good idea. Most if not all Americans are aware of the existence of the silver dollar and many of them actually own silver dollars.
Many people equate the silver dollar with glory days of the past. Monetizing the silver dollar would possibly galvanize people to try and rescue the situation in America. It would possibly help people to cultivate a culture of saving money, real money and not non-redeemable paper notes or fiat money. While America is currently hurtling towards bankruptcy, the citizens actually need to start saving real money in the form of physical silver, especially silver coins.
It would be interesting to hold a poll to see how many Americans would be in favor of owning silver money. Gold might not work so well as many people view gold as the tender of the rich and famous. For this reason the masses have little emotional attachment to gold. Silver coins do have one dollar inscribed upon them and this could affect how silver could be monetized. It would eventually become the situation that the one dollar is merely the name of a coin and not the measure of the worth of the coin.
It could be quite a process determining and regulating the value of the silver dollar. Here is one way that this matter could be dealt with, assuming that silver bullion is worth $35 per ounce and that each silver dollar coin contains 77.34166 percent of a troy ounce then the value could be expressed as $35 x .7734166 = $27.07. This would determine the value of the silver contained in the silver dollar. The value will be quoted in FRNs and be given a margin of 15 percent that will round it up to the next highest multiple of four to become $32.
This would mean that that the legal tender worth of the silver dollar would be $32 FRNs. Americans would gladly purchase these coins and they could be used for all financial transactions and eliminate any haggling. Consumers would be motivated to deposit these coins in the bank (or store it safely at home) so that they could begin saving. Should the price of silver increase then the margin of profit could be reduced to 10 percent so that the 15 percent profit could be restored. In effect this would increase the value of silver coins to $36 FRNs.
Taking it to the next highest multiple of four will help to remonetize the silver currency system and things would be similar to that of the sixties of the last century. All half dollars would therefore be worth $18FRNs and quarter silver dollars would be worth $9FRNs. As the price of silver increases, so too would the value of the coins and consumers would have more confidence in the monetary system. The best news of all is that this can happen at no cost to either the tax payers or the American government.