Join GATA in supporting appeal of Liberty Dollar founder

12:08a ET Thursday, May 26, 2011

Dear Friend of GATA and Gold:

Bernard von NotHaus, creator of the Liberty Dollar, was convicted in March in federal court in North Carolina of three federal felonies related to his issuance of a private currency in gold and silver. The prosecutor claimed that the U.S. Constitution gives the U.S. government exclusive power to mint any type of coin or paper to be used as money. And though the Liberty Dollar coins were not imitations of U.S. coins, von NotHaus also was charged with counterfeiting and conspiracy.

After his conviction, von NotHaus was denounced by the U.S. attorney as a terrorist. (See http://www.gata.org/node/9715.)

Now von NotHaus is seeking acquittal or a new trial, based on insufficiency of the evidence, claiming that the charges against him were based on an unconstitutional reading of federal law.

The post-conviction press release of the prosecutor, U.S. Attorney Anne M. Tompkins, delivered a warning to all advocates of sound money and free markets: "Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism," Tompkins said. "While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country. We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government."

That is, the government's unredeemable paper currency and base metal coinage are real but von NotHaus's gold and silver coins and gold- and silver-backed receipts were counterfeit. And if you complain that the government's money is being debased and try to compete with it in a free market, the government will get you.

The government's trial strategy appeared designed to confuse the Liberty Dollar operation with counterfeiting, and it raised a serious constitutional question. That is, while the Constitution grants Congress the power to coin money, is that power exclusive? The Constitution does not say that it is exclusive, and, indeed, there have been many private currencies in the United States over the years. (See Seth Lipsky's commentary on the Liberty Dollar case in The Wall Street Journal here: http://www.gata.org/node/9765.)

Since the right to individual choice and free markets in currencies, including the monetary metals, is central to GATA's work, last week GATA asked U.S. District Court Judge Richard Voorhees for permission to file a friend-of-the-court brief in support of von NotHaus' acquittal or retrial. Though the government opposed GATA's motion, Judge Voorhees granted it, and GATA has been authorized to file a brief addressing the issue of constitutional money.

GATA is again represented in this case by the Vienna, Virginia, law firm of William J. Olson P.C. (http://lawandfreedom.com/), which in February won our freedom-of-information lawsuit against the Federal Reserve System for refusing to disclosed gold-related records. Assisting Olson is lawyer Thomas J. Ashcraft of Charlotte, North Carolina, a former aide to U.S. Sen. Jesse Helms of North Carolina and the former U.S. attorney for the Western District of North Carolina. Working as co-counsel in von NotHaus' appeal is the U.S. Justice Foundation (http://usjf.net/), a conservative civil rights organization based in Ramona, California.

If you believe in the right to constitutional money and are concerned by the conviction of von NotHaus, who could be sentenced to prison, please consider making a financial contribution to his defense.

The U.S. Justice Foundation has established a special fund for von NotHaus' appeal. Contributions to the foundation are federally tax-deductible. To help, please visit:

https://grassroots.cc/2598_Liberty_Dollar_Appeal

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.