The Gold Confiscation of April 5, 1933

[Sassy]

The Gold Confiscation Of April 5, 1933
From: President of the United States Franklin Delano Roosevelt
To: The United States Congress
Dated: 5 April, 1933
Presidential Executive Order 6102

Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled

An Act to provide relief in the existing national emergency in banking, and for other purposes~',

in which amendatory Act Congress declared that a serious emergency exists,

I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of the order:

Section 1. For the purpose of this regulation, the term 'hoarding" means the withdrawal and withholding of gold coin, gold bullion, and gold certificates from the recognized and customary channels of trade. The term "person" means any individual, partnership, association or corporation.

Section 2. All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:

(a) Such amount of gold as may be required for legitimate and customary use in industry, profession or art within a reasonable time, including gold prior to refining and stocks of gold in reasonable amounts for the usual trade requirements of owners mining and refining such gold.

(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having recognized special value to collectors of rare and unusual coins.

(c) Gold coin and bullion earmarked or held in trust for a recognized foreign government or foreign central bank or the Bank for International Settlements.

(d) Gold coin and bullion licensed for the other proper transactions (not involving hoarding) including gold coin and gold bullion imported for the re-export or held pending action on applications for export license.

Section 3. Until otherwise ordered any person becoming the owner of any gold coin, gold bullion, and gold certificates after April 28, 1933, shall within three days after receipt thereof, deliver the same in the manner prescribed in Section 2; unless such gold coin, gold bullion, and gold certificates are held for any of the purposes specified in paragraphs (a),(b) or (c) of Section 2; or unless such gold coin, gold bullion is held for purposes specified in paragraph (d) of Section 2 and the person holding it is, with respect to such gold coin or bullion, a licensee or applicant for license pending action thereon.

Section 4. Upon receipt of gold coin, gold bullion, or gold certificates delivered to it in accordance with Section 2 or 3, the Federal reserve bank or member bank will pay thereof an equivalent amount of any other form of coin or currency coined or issued under the laws of the Unites States.

Section 5. Member banks shall deliver alt gold coin, gold bullion, and gold certificates owned or received by them (other than as exempted under the provisions of Section 2) to the Federal reserve banks of there respective districts and receive credit or payment thereof.

Section 6. The Secretary of the Treasury, out of the sum made available to the President by Section 501 of the Act of March 9, 1933, will in all proper cases pay the reasonable costs of transportation of gold coin, gold bullion, and gold certificates delivered to a member bank or Federal reserve bank in accordance with Sections 2, 3, or 5 hereof, including the cost of insurance, protection, and such other incidental costs as may be necessary, upon production of satisfactory evidence of such costs. Voucher forms for this purpose may be procured from Federal reserve banks.

Section 7. In cases where the delivery of gold coin, gold bullion, or gold certificates by the owners thereof within the time set forth above will involve extraordinary hardship or difficulty, the Secretary of the Treasury may, in his discretion, extend the time within which such delivery must be made. Applications for such extensions must be made in writing under oath; addressed to the Secretary of the Treasury and filed with a Federal reserve bank. Each applications must state the date to which the extension is desired, the amount and location of the gold coin, gold bullion, and gold certificates in respect of which such application is made and the facts showing extension to be necessary to avoid extraordinary hardship or difficulty.

con't below

[Sassy]

con't from above

Section 8. The Secretary of the Treasury is hereby authorized and empowered to issue such further regulations as he may deem necessary to carry the purposes of this order and to issue licenses there under, through such officers or agencies as he may designate, including licenses permitting the Federal reserve banks and member banks of the Federal Reserve System, in return for an equivalent amount of other coin, currency or credit, to deliver, earmark or hold in trust gold coin or bullion to or for persons showing the need for same for any of the purposes specified in paragraphs (a), (c), and (d) of Section 2 of these regulations.

Section 9. Whoever willfully violates any provision of this Executive Order or these regulation or of any rule, regulation or license issued there under may be fined not more than $10,000, or,if a natural person may be imprisoned for not more than ten years or both; and any officer, director, or agent of any corporation who knowingly participates in any such violation may be punished by a like fine, imprisonment, or both.

This order and these regulations may be modified or revoked at any time.
/s/
Franklin D. Roosevelt
President of the United States of America
April 5, 1933

http://www.the-privateer.com/1933-gold-confiscation.html

[muldoon]

Different times, different set of troubles.  We were on the gold standard, in order for the US government to expand the money supply they needed gold to back it.  Back then international debt was also settled in gold.  Which was why the UK went off the gold standard in 1931 after the failures of many european banks.  They were no longer able to issue gold.  As the world was going through a deflationary depression the USG very much wanted to add liquidity and credit back into the markets in order to offset losses.  They confiscated gold to be able to do so and still have the currency accepted internationally.

Today we are not on the gold standard, no one needs your gold to make new money nor do they settle international debt with gold either.  Based on that, I do not think we will see this repeat. 

However, I do see alot of room for shenanigans like some states are doing with safe deposit boxes:
http://abcnews.go.com/GMA/story?id=4832471&page=1
http://moneycentral.msn.com/content/Banking/Betterbanking/P109173.asp
http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=4976

I also tend to expect to see the government punishing "speculators" in commodities. 

[Sassy]

Thanks for clarifying that, Muldoon!  I thought I was gonna have ta fight some Revenoors!  If appalls me that safe deposit boxes aren't safe at all.  I'd read where the gov't could get into the boxes if they wanted to.  Those articles just boil my blood!  I worked in a bank for 10 yrs - we were so careful about getting ID & making sure all was done properly.  The accounts that were inactive, we'd try to locate the people, if we couldn't, then they were turned over to the state. 

Doesn't seem like the UK is safe either...  I haven't put anything in a safe deposit box for years, anyway.

So you don't think they'll try & take my gold away?  I won't be locked up in an internment camp if I don't give it up?   

[muldoon]

Well I am not psychic, I do not know what the future will bring.  My basic premise now is to stay a few steps ahead of the herd so to speak and hope for the best. 

But I dont see it happening.  When we see tax revenue down, property taxes in severe decline, rising fuel and heating/electric costs, I see government getting hit very hard.  As interest rates go up, the cost of debt to the us government will increase.  As the dollar devalues, foriegn wealth stops investing in US treasuries which forces up rates and if it goes to extremes stops the printing presses outright.  (Cannot get dollars for their projects and wars if no one buys the bonds from the treasury).  We are on this trajectory now, with a slow decline... if a petro-dollar were to take a big hit this would be accelerated.  Worst case being Iran flooding the world with cheap oil sold in Euros. 

Anyway, I dont see how the government can setup internment camps for any length of time in that environment.  Were broke, and were getting more so.  I would be more concerned about them taking your diesel, your crops, and your water stores before your gold.  Communism makes governments do stupid things to their hardworking people.  Were getting close to have a sickle and hammer on ours now.  It amazes me that only a decade after winning the cold war were getting close to failing the same way as the ussr. 

[glenn kangiser]

We tricked the USSR into losing everything in a war in Afghanistan.

Now our criminals in the highest offices are in a war in Afghanistan and Iraq and they dearly want to blow up Iran too.  The transfer of money from the current and future taxpayers of the US to the pockets of the business interests and politicians currently in control of our government is on a fast track to take place while they are still in office...if they ever leave.

If the transfer is not complete and the current criminals leave, I imagine the next batch will be able to continue on where these ones left off.

[ScottA]

What values are they sending to future generations? Try to teach kids right and wrong for what? If those who make and enforce the laws don't obey them why should anyone else?

[Sassy]

Just thought I'd bring this topic back to the forefront...