FDR executive order- collection of Gold in the US ...

coinkat

in denominations issued by other countries

Back in the 1930's, was the issue of whether the US government had the right to collect/buy/confiscate World gold coins ever challenged? I have looked and have not really found a case on point.

It seems that a viable argument could be crafted that the US Government does not have the right to collect/buy/confiscate coins produced by other countries for commerce. It would seem that there is an interest of the issuing country to preserve and maintain its ability to settle debts.

Spooly

This will be a good topic.

derryb

Your president can do whatever he chooses. Looks like now he only has to get a majority of the "super congress" to agree with him instead of a majority of the full congress. Maybe this is what the debt "crisis" was really all about: more power in fewer corrupt hands.

The 1933 order was "justified" on the grounds that hard times had caused "hoarding" of gold, stalling economic growth and making the depression worse. Since the dollar is no longer backed by gold the justification no longer exists. Of course, I'm sure they can think of a new one. The fact that the current Fed chairman has publicly declared that gold is not money would not help their case. The confiscation was for all gold coins, bullion and certificates (not just US denominations) with a few exceptions such as collector coins and a small quantity (5 oz.) that did not have to be turned in.

There was only one prosecution under the order, and in that case the order was ruled invalid by federal judge John M. Woolsey, on the grounds that the order was signed by the President, not the Secretary of the Treasury as required. The circumstances of the case were that a New York attorney, Frederick Barber Campbell, had on deposit at Chase National over 5,000 troy ounces of gold. When Campbell attempted to withdraw the gold Chase refused and Campbell sued Chase. A federal prosecutor then indicted Campbell on the following day (September 27, 1933) for failing to surrender his gold. Ultimately the prosecution of Campbell failed but the authority of federal government to seize gold was upheld. The case forced the Roosevelt administration to issue a new order under the signature of the Secretary of the Treasury, Henry Morgenthau, Jr., which was in force for a few months until the passage of the Gold Reserve Act on January 30, 1934.

stevek

There is the liberal textbook nonsense that their hero, FDR, ended the great depression...that is basically incorrect...it was the production that took place during WW2 which ended the depression, and the fact that our industry was needed to help rebuild Europe after WW2. I firmly believe that if the progressives would have left things alone back in the early 1930's, then the economic ramifications of the "crash" would have recovered much sooner and much stronger...gee, this sure sounds familiar doesn't it? LOL

And of course the mentioned topic is a "big government control" designed to decrease our liberty. Why should we not be allowed to own gold? - their "reasons" back then were total progressive ideology nonsense.