Mises Wire

Using Legal Tender Laws Against the State?

Using Legal Tender Laws Against the State?

The relentless war against cash payments waged by governments worldwide has perhaps gone furthest in Scandinavia. The ostensible reason given by our rulers for suppressing cash is to keep society safe from terrorists, tax evaders, money launderers, drug cartels and sundry other villains, real or imagined. But the actual aim of the recent flood of laws rendering cash transactions less convenient or limiting or even prohibiting them is to force the public at large to make payments through the financial system in order to prop up the unstable fractional-reserve banks and, more importantly, to expand the ability of governments to spy on and keep track of their citizens’ most private financial dealings. One ingenious friend from Norway has fought to protect his right to use cash by invoking his government’s own legal tender laws against it. Here is his story in his own words:

About a month ago I had a doctor’s appointment at the city’s health services emergency ward (government institution).

When leaving, I asked to pay cash. I was told that the cashier’s desk was closed, that I would be invoiced, and that they generally did not accept cash. I reminded the nurse(?) on duty about legal tender.

When I got the invoice, I called accounting at the ward. I told the accountant that I wished to pay cash. I was told that was not possible. I asked if she knew about legal tender, referring to the specific legislation. She went completely defensive, as I clearly perceived it. She even claimed that legal issues with the no-cash arrangement had been dealt with. I said I would file a written complaint.

So I did. I called in a few days later to check if the complaint had been received, which she could confirm. Now the accountant was apparently more interested in discussing the issue.

Yesterday, I got the written response. I was given the opportunity to pay cash in this one case if I brought the exact amount. Moreover, no changes in the general arrangements would be made. Today, I made the payment in cash.

Why did they do this? I would suspect that they figured they had a weak legal case, that they were dealing with someone who apparently wasn’t going to give up, and that allowing it in this case would avoid having to deal with someone with a formal legal interest in challenging their anti-cash system, the alternatives being changing their system voluntarily and fighting an administrative complaint case — or even worse, a court case.

Of course, things would be much better if we weren’t forced to use this fiat money. However, it is reasonable to expect government institutions to comply with the government’s own legal tender regulations.

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