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It doesn't say that the States can only take gold and silver ... it says that the States can only make gold and silver a legal tender.
That is to say, the States can do this only to make a medium of exchange additional to, or a substitute for, the currency issued by the Australian govt. The States are legally obliged to accept the Australian govt currency, but (in a fairly rare situation, such as a shortage of coins and currency) their only alternative to the govt currency is gold and silver coins, similar to the US Constitution's restriction on American states, which effectively limits the options to the existing coinage issued by those foreign countries that have issued precious metal coinage (coins but not nuggets, dust, or bullion).
Last edited by Shoonra : 09-21-2007 at 09:13 AM.
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