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?
The materials available on this hub are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. All materiel are copyrighted properties of the author and may not be used without permission of the author.
To read more articles by Reality Bytes!
Scott Belford from Keystone Heights, FL on June 14, 2012:
Again, well put together hub, but not all of the facts are there. I didn't realize there had been an actual confiscation, but looking into it, I can see why; the hoarding of gold by businesses of all ilks and wealthy individuals was one of the principal reasons for depth of the depressio. Because the dollar was tied to it, the government reserves of gold were disappearing making the speices currency worthless. Hence, the laws against hoarding.
BTW, many of those who could afford to own vast quatitities of gold never did turn it in, they did what they would do today, they moved it off-shore. Only one person was ever prosecuted under this order, and the government lost the case.
One of the reasons this manuever worked for Roosevelt is that when he raised the price from $20 to $35, the profits generated in the international trading market were used to set up the Exchange Stabilization Fund which allowed America to affect foreign exchange rates without affecting domestic money supply. Later, the dollar was pegged at gold at $35/oz once the economy stabilized and it was again safe to do so.
While your facts are basically correct regarding the passage of the Emergency Banking Act of 1933, really a modification of the Trading with the Enemy Act of 1917, your characterization of it I find somewhat misleading. Let me offer my version. Yes, FDR spearheaded it. Let me add though that the country was now at the bottom of the most devestating depression America has ever known and the House and Senate were full of brand new Democratic members intent on doing something radical to get the country out of it, having replaced the Republicans who got us into the mess in the first place, sort of like 2008, isn't it? Yes, the bill was passed in one night and yes, it wasn't read by many members, but that was their choice, not Roosevelts, as you insinuate. They set their own rules, not the President, and they always jealously guard them.
No, the confiscation of gold which sort of happened was a rational move in a dire situation that helped America recover and not a conspiracy to destroy Americans, which it clearly hasn't.
Alicia33Moran on December 25, 2011:
When you are in the corner and have no cash to get out from that, you will have to take the business loans. Because it will help you definitely. I get bank loan every time I need and feel good because of it.
Reality Bytes (author) from Freeman On The Land United States of America. on June 28, 2010:
ilmdamaily Thank you for the well thought out comment. The more I study history the more things that I see are repeating themselves.
ilmdamaily from A forgotten corner of a dying empire. OK, it's Australia :-) on June 28, 2010:
People don't seem to realise the "house of cards" that the fractional banking system is built on.
I did some interesting research a while back. The total amount of gold ever mined in history, at current market prices amounts to five trillion dollars (very approximately).
This means that as much as 70% of the US dollars currently in circulation have literally nothing underwriting their value.
This does not include the twelve trillion dollar national debt of the US either.
Put simply, all of the gold ever mined in the history of the world could not sufficiently cover even a quarter of the US economy.
Nevermind the yen, euro, or han.
We are all headed for a very big fall. The writing is on the wall, and I cannot believe that more people do not see this coming.
I think (one of) the best answers is to internationalise yourself. Plant flags for citizenship, residency, employment etc in as many different countries as possible.
As bad as things are for many of the larger economies in the world, there's several smaller countires with vastly brighter futures (Brazil to name just one). We need to consider these places as a potential "plan B" if we hope to preserve a standard of living we're accustomed to.
There's a blog I read on this which you may enjoy:
You're right - our assets can and will be appropriated by the government, and it will come with very little warning indeed.
As the entitlement mentality which underwrites many modern democracies worsens with the economic problems, so the chances of capital controls being introduced becomes ever more likely.
It's scary - but i'll tell you what: we're living at an incredibly important and interesting time in history!
Arthur Fontes from Fall River,MA on June 09, 2010:
Wow what a history lesson. Good Job
thevoice from carthage ill on June 07, 2010:
great powerful hub read thanks
someonewhoknows from south and west of canada,north of ohio on June 07, 2010:
How You Became A Commodity
The Creation Of Constructive Trusts
And the Solution
Copyright 1997 By Ed McCabe
With many thanks to Howard Griswold
The 14th Amendment to the Constitution created a secondary class of citizens so the slaves could become federal citizens and be "freed." The only problem today, is that most people have been duped into giving up their Sovereignty to become second class federal citizens.
In America we are born American Nationals, and do not become federal citizens unless we legally are duped into swearing allegiance to the federal state. Trouble is, nobody tells us this, because New World Order society planners want to enslave us to the federal debt we did not create, and make us pay and pay because they maneuvered the United States into bankruptcy in the 1930's. We have been sold into economic slavery. Not just "we," but specifically your own personal body has been sold without anyone telling you.
According to Gardina v. Board of Registrars of Jefferson County - Supreme court of Alabama Feb 2, 1909: "There are two classes of citizens under our form of government,citizens of the United States and of the state; and one may be a citizen of the former without being a citizen of the latter."
Marion v. New York. New York is foreign to the United States, and 28 USC 1603(a) "foreign state" is a political subdivision of a foreign state, which is a separate legal person which is neither a citizen of a State of the United states.
The Feds have gotten everyone with a birth certificate and a social security number to become subservient to them. During our signing up for an adhesion-to-the-federal-body-politic birth certificate and social security number, we didn't know it, but the Feds used these applications to create two implied (unwritten, called "constructive") trusts in which we were duped into giving the Feds a "security interest" of ownership in our bodies. They trade these security interests (a monetized copy of your birth certificate, and a monetized copy of your social security application) in international commerce as if they were money. Presto! Your body is now the collateral on the national debt. And you didn't know about it or knowingly agree to it.
76 American Jurisprudence 2d "TRUSTS" section 210: "Promise, agreement or contract - Generally speaking a constructive (implied, unwritten) trust does not require any agreement between the parties - either actual, or express (in writing), or implied - to create the trust, Rather, a constructive trust generally stems from the equitable powers of the court."
Once we legally give them this power, they skim off the cream, and keep the value of the trust (as a piece of paper commercially tradeable security interest) and then give us back possession of our bodies and make us responsible for the upkeep of the trust property, again, trust property means our bodies. It's a perfect master/slave relationship for the Feds, they get the value we freely give away, but they have no worries since we, as mere possessors, are the ones now legally bound to have to do all the maintenance on ourselves and our property and to follow the trust rules and be "law abiding."
Since we obviously proved ourselves insane by the act of giving away control of our lives to someone else, the courts have ruled that by the performance of this insane act we are obviously incompetent, and therefore, they need to appoint a Guardian over us, and who better to be the Guardian than the trustee we gave the power to, the Feds. The courts use the federal and state statutes as the daily enforcement/maintenance rules for the upkeep of the trust property, our contracted into slavery bodies. This scam is all Constitutional under our exercising our Right to Contract. Here is the statute, or trust rule, where we let them legally turn us all into "Federal Personnel," subject to federal jurisdiction by the act of getting a Social Security number.
UNITED STATES CODE TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES i. PART I - THE AGENCIES GENERALLY (1) CHAPTER 5 - ADMINISTRATIVE PROCEDURE (a) SUBCHAPTER II - ADMINISTRATIVE PROCEDURE 552a. Records maintained on individuals (a) Definitions. - For purposes of this section -(12) the term "Federal benefit program" means any program administered or funded by the Federal Government, or by any agent or State on behalf of the Federal Government, providing cash or in-kind assistance in the form of payments, grants, loans, or loan guarantees to individuals; and (13) the term "Federal personnel" means officers and employees of the Government of the United States, members of the uniformed services (including members of the Reserve Components), individuals entitled to receive immediate or deferred retirement benefits under any retirement program of the Government of the United States (including survivor benefits).
Social Security is a Federal benefit program. You, as federal personnel, don't have any freedom in healthcare or in any other area because you appoint them your master to take care of you. But their version of "taking care" of us is to burn babies, raid clinics, imprison doctors, therapists and educators, tax us un mercilessly, and outlaw real cures for disease. This fictitious statutory federal citizenship status, and your body's secret existence as mere collateral for a security interest traded as an article of international commerce is legally signified whenever your name is spelled in ALL CAPITALS on financial and legal documents. Check your mail.
This appointment of being our masters that we were tricked into giving them has now, through their un rebutted tort feaser fraud, grown to become their almost complete dictatorial control power over our bodies, our finances, our minds, or our children, and how we use them. This power over us is, or is about to become, SLAVERY. We are squarely to blame. Through our Right to Contract power of appointment. Yes, we did appoint them trustees over our bodies, but only because they withheld all the facts from us. This is contract fraud. They did not tell us when we signed up, that these secret trusts were created, and that the creation of these unwritten constructive trusts would give them this complete statutory control over us. They couldn't. They know perfectly well that we aren't really insane, and that we would never agree to such a contract if we openly knew about it.
Would anyone in their right mind give someone the power to burn their children alive? That's what just happened in Waco, Texas. They don't tell us this is why they can, for example, take your children away from you or deny you life restoring oxygen/ozone and other therapies, or deny you really meaningful health care, and enslave you into being responsible for an artificially created and fraudulent national debt, or make you give up a third of the fruits of your labor to the federal trustee as payment for managing your trust- in the form of "taxes" - which all only go overseas to fatten the coffers of the foreign multinational IMF bankers. See Title 22 U.S. Codes Section 286 for proof of the International Monetary Fund having their hand in our cookie jar.
They CONCEAL from us that WE OURSELVES, by using our own God given right to contract, in this case for a birth certificate and social security number, gave away our rights by using our "POWER OF APPOINTMENT, " to unknowingly make them trustees over our lives. However, we the individual people also, AS THE ORIGINAL TRUST CREATORS, HAVE THE POWER AND RIGHT TO LEGALLY AND PEACEFULLY UN APPOINT, or "RELEASE," and "TERMINATE" THIS ADHESION TRUST RELATIONSHIP with them. No longer can they fine and jail us, and break up our families, and send our children off to die in their wars. The truth of this is right in front of us in the statutes, but the evil tort feasers in government have hidden the statutory PROCEDURAL PATH to the RELEASE AND TERMINATION OF ALL TRUSTEE POWER OVER US deep in some corner of every state and federal lawbook. The statutory release path is unbelievably, and fraudulently, found under different titles such as, "Act for the Simplification of Fiduciary Security Transfers," or under