Atlasia v. Southeast
[Attorney General Marokai Blue, Senator SPC; Arguing]
Statement of Facts
On April 8, 2009, the regional government of the Southeast passed the Freedom of Currency Act, which states the following:
"1. Article I, Section XII, shall be added to read the following:
a. The government of the Dirty South shall gradually take Atlasian dollars out of circulation within the Dirty South.
b. The government of the Dirty South shall circulate currency called "dixies," which can be exchangable for a pegged amount of gold at any time.
c. Section 2 will be enforced on a purely voluntary basis, and no legal tender laws will be used to force businesses to accept dixies as currency."
Question(s) Presented:
Can a regional government circulate currency without interfering with the constitutional prohibition on a region either issuing currency or making a currency besides that of the Senate legal tender?
Argument:
Article I, Section 5, Clause 8 of the Constitution gives the Senate the power "to establish coin and currency, which shall be the sole legal tender of the Republic of Atlasia, regulate the value thereof, with respect to other coin and currency." However, there is no mention of making dixies a legal tender in the Freedom of Currency Amendment, and in Section 3, it explicitely says that "Section 2 will be enforced on a purely voluntary basis, and no legal tender laws will be used to force businesses to accept dixies as currency." Thus, this amendment is clearly not in violation of the Senate's sole power to make legal tender, since no legal tender is recognized in this amendment.
Article I, Section 7, Clause 2 of the Constitution states that "No Region may issue Coin or Currency or make any Coin or Currency other than that of the Republic of Atlasia a legal tender." As explained above, the Freedom of Currency Amendment does not make anything legal tender, so that part is not violation. As for the former part, Section 2 of the Freedom of Currency Amendment states that "The government of the Dirty South shall
circulate currency called "dixies," which can be exchangable for a pegged amount of gold at any time." Circulate does not necessarily mean issue in this context, since the dixie is being issued by
another entity. Thus, since the dixie is being issued by another entity, this amendment is not in violation either.
Since the Freedom of Currency Amendment does not interfere with either of the above prohibitions, Article IV, Section 3, Clause 2 of the Constitution establishes that "The powers not delegated to the Republic of Atlasia by the Constitution, nor prohibited by it to the Regions, are reserved to the Regions respectively, or to the people." Thus, the power to circulate currency other than that of the Republic of Atlasia, so long as it isn't issued by the regions or given legal tender status, is reserved to the regions.
Conclusion:
Since the Freedom of Currency Amendment neither states that the government of the Southeast would issue a new currency nor states that the Southeast would make a currency other than the Atlasian dollar legal tender, the amendment is constitutional and should not be overturned by the Supreme Court. While I would be in agreement with the Attorney General if this amendment issued currency or recognized a currency as legal tender, this amendment does neither.