Friday, March 5, 2021
TODAY IN HISTORY
On March 5, 1933, after a month long run on banks, President Franklin Delano Roosevelt declared a nationwide Bank Holiday that shut down the banking system starting on March 6. Just before FDR was inaugurated on March 3 the Federal Reserve Bank of New York adopted a resolution stating that the withdrawal of currency and gold from the banks had created a national emergency, and the Federal Reserve Board is hereby requested to urge the President of the United States to declare a bank holiday. Roosevelt was told what to do by the banks. He did so with Proclamation 2039 under the excuse of alleged unwarranted hoarding of gold by Americans. This resulted in the government stealing gold from the American people and giving them useless fiat paper money in return. On March 10, Roosevelt issued Executive Order No. 6073, forbidding people from sending gold overseas and forbidding banks from paying out gold. On April 5, Roosevelt issued Executive Order No. 6102 ordering Americans to deliver their gold and gold certificates to the Federal Reserve bank in exchange for paper money.
Under this executive order, Americans were prohibited from owning more than $100 worth of gold coins, and all hoarders were forced, by law, to sell their excess gold to the government at the prevailing price of $20.67 per ounce. Then, once the government had all the gold, FDR revalued the dollar relative to gold so that gold was now worth $35.00 an ounce. By simple decree FDR had robbed millions of American citizens of their wealth. During the FDR bank holiday, thousands of banks never reopened. This made Roosevelt’s coercive and unconstitutional acts look ingenious, but scholars from the left and right continue to debate whether they were truly wise or if the New Deal was bailed out by WWII.
Posted by Addison's at 2:52 PM