Here's something I've wondered about. When FDR confiscated the American People's gold, were they compensated for it?
According to Wikipedia, the compensation was $20.67 per troy ounce of gold.
The text of the order reads:
Section 4. Upon receipt of gold coin, gold bullion or gold certificates delivered to it in accordance with Sections 2 or 3, the Federal Reserve Bank or member bank will pay therefor an equivalent amount of any other form of coin or currency coined or issued under the laws of the United States.
So, presumably, compensation was in Federal Reserve Notes. Such a deal!
They were at the current set ratio of dollars to gold. Shortly thereafter the ratio was nearly doubled, effectively stealing half of everyone's gold wealth. I can't figure out how they did that without a revolt, but I guess after 10 years of depression people will take anything.
Stolz25:They were at the current set ratio of dollars to gold. Shortly thereafter the ratio was nearly doubled, effectively stealing half of everyone's gold wealth. I can't figure out how they did that without a revolt....
Remember, the governing classes had been successfully encouraging the use of paper money over specie coins for decades. Much personal wealth was already held in notes rather than specie.
Yes, I believe gold was revalued to 35 dollars, with the government making a quick and tidy profit. And yes, I find it remarkable that not only did people not riot, but still hold FDR up as a demi-god even to this day.
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