When the FRN [Federal Reserve Notes] are mixed with the Silver Liberty, the acceptance rate is nearly 100%. I’ve only been refused once out of a hundreds of transactions. Second, when I get to the cashier, I say “I have the paper [show them the FRN cash], but I would like to pay with silver. I then drop the $10 silver liberty in the cashier’s hand. Then wait . . . . When they ask “is it real?” I always answer, Yes, ounce of silver, 10 dollars. Let them look at it as long as they like . . . . If they ask ‘Where did you get it?’ my first answer is ‘From a friend who collects them, but I like to spend them.’ Smile. This let’s them know it’s inherently valuable and that people collect them and some people spend them, in just one sentence. It also lets them know that you’re not crazy to spend this money and that there are others doing it too.
Von NotHaus filed a motion to dismiss claiming that the first amendment provided him with the right to create the liberty dollar. He noted that on the warehouse receipts it stated this “is an exercise of the Bearer’s First Amendment right to petition the Government for a silver based currency as mandated by the U.S. Constitution.” He also pointed out that the Government had nothing to fear as Gresham’s law assures us that bad money (Federal Reserve Notes) will drive out good money (Liberty Dollars).
Von Nothaus was convicted of conspiracy and two other coining related charges. Upon conviction, U.S. Attorney Tompkins said “Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism.”
Von Nothaus was convicted of of violating 18 U.S.C. section 485 which reads:
Whoever falsely makes, forges, or counterfeits any coin or bar in resemblance or similitude of any coin of a denomination higher than 5 cents or any gold or silver bar coined or stamped at any mint or assay office of the United States, or in resemblance or similitude of any foreign gold or silver coin current in the United States or in actual use and circulation as money within the United States; or
Whoever passes, utters, publishes, sells, possesses, or brings into the United States any false, forged, or counterfeit coin or bar, knowing the same to be false, forged, or counterfeit, with intent to defraud any body politic or corporate, or any person, or attempts the commission of any offense described in this paragraph–
Shall be fined under this title or imprisoned not more than fifteen years, or both.
Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined under this title or imprisoned not more than five years, or both.CONCLUSION