What is the Gold Confiscation Act? Can the Government Take My Gold? Is It Not Theft To Confiscate Gold From The People?
Gold Confiscation Act Of 1933
Can It Happen Again?
While the Great Depression was a terrible time in this countries history. One thing that is not really talked about is the Confiscation of almost all Gold held by private parties of the United States. This was done in 1933 under a Declared National Emergency, one that was declared by then sitting President Franklin D. Roosevelt.
Not only the people, but also Corporations, Partnerships and Associations were all required to hand over all of their Gold Currency and Gold Bullion to the Government. What they received for payment was the soon to lose value, Paper Money.
What happened if the Gold was not turned over to the Government?
There was a Criminal Penalty threatened to those who refused to comply. $10,000 Fine and 10 years in jail, or both.
Your Corporate Government Education System does not teach this part of our history.
Never in our history was such a seizure of private property ever perpetrated. The shocking thing is even at the High School and Collegiate level this part of our history is not even mentioned.
Why is this not taught in our schools?
To keep the people ignorant of the real history of our Nation allows the People to remain in perpetual servitude to an oppressive Government. Without knowledge of the Act, it is very possible for the same kind of property seizures to occur again.
A History Lesson
It was 1933 and the nations economy was swirling uncontrollably . The profitable and industrious Roaring Twenties had swiftly turned in 1929. Black Tuesday is the day of the infamous stock market crash followed by heavy unemployment and hard times that was to be known as the Great Depression.
Banks across the country were closing eliminating the deposits of many people's Life Savings. Anyone with money in a bank was clamouring to retrieve their wealth, most wanted their payment to be in Gold Coins and/or Gold Bullion.
Back then our currency was backed by the Gold standard, Gold Coins were used just as worthless paper money is used today. You could exchange your paper money for gold coins back and forth. In 1933 a Troy Ounce of Gold was worth $20.67, that was the Government Rate.
With all the demand for Gold it was not long before a shortage of Gold would occur. This "run on the banks" almost and some would say did, cause the Bankruptcy of the Nation.
FDR , Order 6102, Gold Coins, Gold Bullion, Certificates
Roosevelt And The Banks
Franklin D. Roosevelt was inaugurated on March 4, 1933 as the President of the United States. It was only a couple of days after his inauguration that President Roosevelt shut down all the banks in the country.
The "run on banks" that required Gold and Currency reserves to dwindle had caused a Roosevelt claimed National Emergency. The term for shutting down our banks is a "bank holiday".
It was only his fifth day in office when FDR forced through Congress the Emergency Banking Act (bill H.R. 1491).
Nobody knew who authored the Law, In fact Congress was never given a chance to read the Bill. There was only one printed copy which was given to the House of Representatives. The President made a strange request that debate on the Bill would be limited to only forty minutes, twenty minutes for Republicans and twenty minutes for Democrats.
The Bill was passed without taking a roll call vote. It was assumed that Congress should just do whatever the President wanted them to do. At 7:30 that night the Bill passed the Senate and The President signed it into Law.
What Did The Emergency Banking Act Include?
The preamble of the Bill said it was an "act to provide relief in the existing national emergency in banking, and for other purposes." H.R. 1491 was meant to implement three things:
The First thing it included was the authorization that Roosevelt a few days before for a Banking Holiday. This was to be retroactive.
The Second thing it included was to give the President an unprecedented new authorization to regulate all banks during either a "time Of War" or a "National Declared Emergency". This allowed the president to also regulate all Financial Transactions and anything to do with Gold.
The Third thing was the power it gave the government (especially the Secretary Of State) the authorization to force those who held Gold Coin or Gold Bullion and Gold Certificates to turn them over to the Treasurer of the United States.
FDR steals the people's gold
The Executive Order Of 1933 Which Called For Gold Confiscation
It was not even a month later that President Roosevelt exercised his new rights. On April 5, 1933 the President issued executive order No. 6102, also known as the 1933 Gold Confiscation. This Executive Order resulted in...
- A Declared National Emergency, which the just passed Emergency Banking Act gave the President at his own discretion to declare a national emergency for any reason he wanted.
- Made the hoarding of gold (Any Gold worth more than $100.00 per person) whether it was in Gold Coin, Gold Bullion or Gold Certificates in the United States either by individuals, partnerships, corporations and associations prohibited.
- Forced everyone in the Nation to hand their Gold over to the Bank for only $20.67 per troy ounce.
- Made it a criminal offense for any individual who was found in Violation of this order.(including private citizens, and officers, agents or directors of corporations that knowingly violated any part of the executive order): $10,000 fines, 10 years in prison, or both.
Not all coins were included under this order. Almost everyone was required to turn over their Gold in exchange for a Fiat Currency. If the Gold Coins were considered Rare or Collectible they would not have to be relinquished.
Then What Happened?
Once the Gold was effectively confiscated from the People and was illegal to own. The Government raised the Value of Gold for International Transactions from the price paid to the people of $20.67 per troy ounce to $35 per troy ounce.
What this did was lower the value of the Dollar Instantly. While the International Value of Gold rose by +69%, it devalued the dollar by the same amount. The people found their dollars to be worth -69% less then when they accepted it. This made it even harder for the people to survive in what was already a Depression.
This made the rare coin collectors who did not have to turn over their Gold a nice handsome profit from the increase in the Value of Gold. Simply because their coins had a collectible value.
This value of $35.00 per Troy ounce remained the value until August 15, 1971, when President Richard Nixon took the Nation completely off the Gold Standard in favor of Foreign Exchange. The nation officially abandoned the gold standard for foreign exchange.
Limits on civilian Gold ownership ended on December 31, 1974, President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates.
how Obama could confiscate your gold according to Marc Faber
Could This Happen Again?
It could happen, Private Ownership of Gold was made legal again in 1974. The problem is, the Emergency Banking Relief Act of 1933 was never repealed.
Any time a President would like to, he still has the right to order Gold Confiscations. Even if we get the Act repealed, it would not be difficult to have it reinstated.
Before you think that a present day President would never allow Gold Confiscation to happen again. You better think again!
Look At What Is Happening!
In the last year we have seen Government intervening in Financial Markets. They are getting more and more involved in Private Property. In fact Government is becoming involved in all sectors of the Economy.
There are bailouts of banks. They are bailing out Automakers. Even Insurance and Security Firms are receiving Bailout money. In all of History a power grab such as this has never been perpetrated.
These excessive Government Regulations have only been seen once in History. It was done by the Roosevelt Administration in 1933.
Over time it is obvious that Government will sacrifice Personal Liberty in the name of National Security. Putting aside Government Policy for a second let us consider the Economy. Many educated Economists as well as American Citizens think that the Bailouts of Today will increase Inflation and cause a severe Monetary Crisis.
This Economic Crisis could cause the Government to return to some form of a Gold Standard. With the amount of Gold Reserves the United states and the Central Banks currently have in possession, this could no longer occur. If the Country did revert to a Gold Standard then Confiscation of Gold by the Government could become a necessity. If the Government needs to accumulate Gold.
Where do you think it would come from?
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