I was reading some posts on various websites this morning, and came across some mentions of our recent press release. If you like, you can read it here.
What caught my attention, however, was that several people commented that the Liberty Dollar Network can’t survive, because “it won’t be long before the feds raid them and take all the silver…”
Now, we all know what happened to Bernard von NotHaus and the original Liberty Dollar, but apparently there’s some confusion about why it happened. I think it might be time to clear that up a bit.
The Liberty Dollar was a wonderful idea, but there was one little detail in the law that was missed when Bernard asked his attorneys to give him their opinion on its legality. That little detail was 18 USC 486, which states that it is against the law to issue coins or bars of “gold, silver or other metals” for use as current money. “Current money” is defined as whatever is being used in commerce, and the federal government decide that the Silver Libertys were in violation.
Merely possessing Silver Libertys was not a crime; for that reason, the federal courts did eventually order all those issued prior to the government’s injunction to be returned to their rightful owners, and Bernard is still completing redemptions to this very day.
The Silver Certificates issued by NORFED, however, were not in violation of that statute. They were lawful warehouse receipts, long established in law as negotiable instruments that can be used as security for debt or traded for items of value. It was only the use of actual silver in commerce that constituted a crime, and that is why the Liberty Dollar Network does not offer any kind of coin or round to be used as currency. We offer only Silver Certificates that follow the same formula used for those of the Liberty Dollar, which are already established as legal.
In addition, the Liberty Dollar Network is working within the established guidelines of a Money Service Business, which is required by law. In doing so, we are meeting all the criteria of a legal financial business, and have nothing to fear from the Federal Government. I don’t think there’s any real risk of our being shut down or raided, and I hope this clears up the confusion. If anyone has questions, I’ll be happy to answer them.
Thanks for reading.