In my article “A Reader Wonders—Art. 1.10.1 vs. Art. 4.3.2”, I hypothesized that that loss of gold and silver coin in domestic circulation caused the governments of the States of the Union to become insolvent and non-functional. I speculated that, in the resulting governmental void, the national government passed emergency legislation to allow “territorial states” and/or “administrative districts” to supplant the insolvent governments of the States of the Union.
In the aftermath of that article, some readers have asked for statutory evidence of when those “territorial states” were created by law.
I don’t know where and when these hypothetical “territorial states” were created in law. If the hypothesis is true, that information remains to be discovered and confirmed.
But if it were true that: 1) the governments of the States of the Union did not become legally insolvent until after both the gold- and silver-based currencies had been removed from domestic circulation; and 2) the last of the silver-based currencies disappeared between A.D. 1964 and A.D. 1968—then it would seem to follow that the governments of the States of the Union didn’t stop functioning until the early 1960s. Therefore, the hypothetical territorial-state governments did not come to full power until sometime in the early 1960s (when, incidentally, the Viet Nam war was heating up).