We are to be a nation where people can worship whatever they want on their own time (That’s the whole “Free Exercise” part), but no laws are to be written recognizing religion, and having “In God We Trust”on our currency is obviously a clear violation.
This will not sit well with the "war on Christianity" crusaders, they will counter attack. First we must go back and see what everyone was thinking when this phrase was added to coinage. It wasn't until the 1950's (another conservative era) that the phrase was added to the paper bill. It would appear Rev. M. R. Watkinson, Minister of the Gospel from Ridleyville, Pennsylvania, influenced peddled his religious reasons despite the contrary "freedom of religion" in the US constitution. It would also appear the reverend misinterpreted the meaning of freedom of religion while convincing then secretary of treasury it "was a good idea".
History of 'In God We Trust' http://www.treasury.gov/about/education/Pages/in-god-we-trust.aspx
The motto IN GOD WE TRUST was placed on United States coins largely because of the increased religious sentiment existing during the Civil War. Secretary of the Treasury Salmon P. Chase received many appeals from devout persons throughout the country, urging that the United States recognize the Deity on United States coins. From Treasury Department records, it appears that the first such appeal came in a letter dated November 13, 1861. It was written to Secretary Chase by Rev. M. R. Watkinson, Minister of the Gospel from Ridleyville, Pennsylvania, and read:
Dear Sir: You are about to submit your annual report to the Congress respecting the affairs of the national finances.
One fact touching our currency has hitherto been seriously overlooked. I mean the recognition of the Almighty God in some form on our coins.
You are probably a Christian. What if our Republic were not shattered beyond reconstruction? Would not the antiquaries of succeeding centuries rightly reason from our past that we were a heathen nation? What I propose is that instead of the goddess of liberty we shall have next inside the 13 stars a ring inscribed with the words PERPETUAL UNION; within the ring the allseeing eye, crowned with a halo; beneath this eye the American flag, bearing in its field stars equal to the number of the States united; in the folds of the bars the words GOD, LIBERTY, LAW.
This would make a beautiful coin, to which no possible citizen could object. This would relieve us from the ignominy of heathenism. This would place us openly under the Divine protection we have personally claimed. From my hearth I have felt our national shame in disowning God as not the least of our present national disasters.