Liberty Dollars: Beyond FRN’s
Liberty Dollars, while currently denominated in parity with US dollars according to the agreed value of an ounce of silver, are not dependent on US dollars or any other currency for their value-in-use. This is because they are currently backed by .999 fine silver, but silver is not the only commodity that can be used as a source of value. Gold, platinum, palladium and even copper come to mind as alternatives in precious or semi-precious metals, and any of these could be used as a security for Liberty Dollars. The only difference that would need to be made would be to establish the value of those commodities relative to the silver that is currently in use as the primary gauge.
If you choose to bail in your own silver, we will credit the face value of $25 per ounce, minus our bailment fee of 15%, to your eLD Account. Alternatively, you can choose to pay the bailment fee separately so that your account is credited the full value.
When other currencies are available to exchange for Liberty Dollars, the system is simple, but it is then necessary to examine what will happen when there are no other viable currencies. Should FRN’s, for example, become worthless due to economic collapse or other calamity, how then will the people be able to acquire Liberty Dollars to use in barter?
For the answer to this question, we must first clarify the definition of the word “commodity.” According to most dictionaries, a commodity is any exchangeable good or material, bought and sold freely as an article of commerce. Commodities generally are considered to be agricultural products, fuels, and metals which are traded in bulk on a commodity exchange or spot market, but they also include items of value that are commonly consumed by the public. For this reason, it is possible to issue Liberty Dollars that are secured by anything of value that can be compared to the value of an ounce of silver or any portion or multiple thereof.
For example, an ounce of silver in 1950 would purchase approximately four gallons of gasoline. Today, an ounce of silver will still purchase the same amount of gasoline. The same can be said about the number of dozen eggs that could be bought with the value of an ounce of silver at any point since 1797, and there are many other items that could be inserted into the sentence above.
This tells us that we can use our current Liberty Dollars valuation of silver to establish a similar Liberty Dollars value for any other commodity, whether it be copper, brass, iron, steel or a bale of cotton. We can set a comparable and viable value in Liberty Dollars on eggs, bread, coffee, livestock, vehicles and literally anything of value.
Now there remains one more step, which is being implemented into Liberty Dollars even as this is being written: bailment. Bailment is the act of delivering goods to a storehouse without relinquishing ownership thereof. The bailee (warehouseman) provides to the bailor a receipt (or a series of receipts) for the goods. If the receipt is transferable, whether because it is made to the Bearer or by endorsement of the bailor, then it is a form of money that has a history of use in most countries.
The bailment to be implemented is what is called soft bailment. This means that the specific goods delivered by the bailor to the bailee are not guaranteed to be the goods he or she will receive if and when a demand for redemption is made. If silver in the form of bars was bailed in, the redemption may include silver in the form of rounds or coins, or perhaps some other commodity altogether. Unless an agreement to the contrary is made in writing, the items bailed in will be redeemable by anyone with bearer warehouse receipts known as Liberty Dollars.
Liberty Dollars are now offering bailment of silver, and modifications to the Certificates (warehouse receipts) will shortly be made to alter them from being redeemable only in silver to being redeemable in other commodities valued comparably with silver. This means that, when there is no other currency to exchange, the Republick Trust will become a storehouse. Almost anything can be brought into the storehouse and bailed in exchange for Liberty Dollars, and anyone with Liberty Dollars can then redeem (buy) those items.
The choice of what will be accepted for redemption, of course, remains with the bearer of the Liberty Dollars. In this way, Liberty Dollars remain a viable currency that will always maintain solid value, regardless of what fate any other currency or economic system may suffer.
This means that the farmer who needs to sell his grain can go to the grain mill, but if there is no money the grain miller will likely come to the Republick Trust and bail in a security interest in the grain in exchange for Liberty Dollars to give to the farmer. When the grain is made into flour and other products and sold, that security interest is then redeemed by the miller as the products are sold to the customers.
A security interest means that Republick Trust has a lien against the goods, and that lien must be satisfied before the interest is cleared or canceled. Republick Trust has thus become an economic partner of the person who owns the goods, whether they be raw materials, finished goods, farm crops, livestock or anything else. When the goods cannot be feasibly delivered to the warehouse, security interest makes it possible for Republick Trust to deliver Liberty Dollars to the bailor.
Since all other money will be worthless at this point, Liberty Dollars will almost instantly gain acceptance everywhere. Merchants can bring the Liberty Dollars they receive to the storehouse to redeem merchandise they can sell; raw good producers will bail in raw goods, and manufacturers will be coming to redeem those goods in order to make more goods to sell to the public. The economy continues without any major detrimental effects, because there is both supply and demand, and Liberty Dollars can facilitate both.
If you have silver or other commodities or merchandise you wish to bail in, please contact us directly at 386-330-4312 or by email via our Contact Page.