how the feds treated 'gold hoarders' in 1933 , page-6

FROM:
http://en.wikipedia.org/wiki/Executive_Order_6102


Justification (for Gold Confiscation)

"The bank panics of Feb/March 1933 and foreign exchange movements were in danger of exhausting the Federal Reserve holdings of gold.[1]"

My Note: FEDERAL RESERVE


Also, from:
http://en.wikipedia.org/wiki/Executive_Order_6102


Invalidation and reissue

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 technical grounds that the order was signed by the President, not the Secretary of the Treasury as required.[3]

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 (160 kg) 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.[4] 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.

Abrogation and subsequent events

The Gold Reserve Act of 1934 made gold clauses unenforceable, and changed the value of the dollar in gold from $20.67 to $35 per ounce.


My Notes: Chase National was the ROCKERFELLER Bank..... Today's JP Morgan Chase is the WORLD's largest company, second is Generel Electric.

$20.67 pre-confiscation......UP TO $35 post-confiscation

So, the gold confiscation SAVED the Banksters' dollar printing preeses based on FRACTIONAL RESERVE banking.... also, brought in a tidy profit for them.




FROM:
http://en.wikipedia.org/wiki/Talk:Executive_Order_6102#Reasons.3F


REASONS for the Gold Confiscation

FROM:
http://en.wikipedia.org/wiki/Talk:Executive_Order_6102#Reasons.3F

Reasons?

.....................

"The reason was to ensure that the us dollar maintained its value (aka so it did not inflate during the depression) - since gold and silver were the primary forms of currency beyond dollars, by restricting these, they ensured dollars would be used instead. Also it helped keep big businesses and banks from converting their wealth into gold/silver during hard times - which would have spelled the end for the dollar."

My Note: "since gold and silver were the primary forms of currency beyond dollars, by restricting these, they ensured dollars would be used instead."

..........................

... Transcript of FDR radio broadcast FDR says "What, then, happened during the last few days of February [1933] and the first few days of March? Because of undermined confidence on the part of the public, there was a general rush by a large portion of our population to turn bank deposits into currency or gold?a rush so great that the soundest banks couldn?t get enough currency to meet the demand. The reason for this was that on the spur of the moment it was, of course, impossible to sell perfectly sound assets of a bank and convert them into cash except at panic prices far below their real value. By the afternoon of March 3, a week ago last Friday, scarcely a bank in the country was open to do business. Proclamations closing them in whole or in part had been issued by the governors in almost all of the states." FDR doesn't say what caused the undermined confidence but posssibly there were rumours of banks being near collapse.

The March 6th proclamation declaring a 4 day bank holiday to reorganise shaky banks does mention silver as well as gold. The proclamation states that "speculative activity abroad in foreign exchange has resulted in severe drains on the nation's stocks of gold". (possibly USA had issued too many paper dollars causing inflationary pressures requiring US to deliver gold to maintain the gold standard of $20/oz gold)

..........................

"One reason why the Federal Reserve did not act to limit the decline of the money supply was regulation. At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act, which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics a portion of those demand notes were redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by a greater reduction in credit. On April 5, 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates, coins and bullion illegal, reducing the pressure on Federal Reserve gold.[28]"


My Notes:

"A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding."

The 70's saw the dropping of the gold standard in the USA... then

http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act

....the repeal of the Glass-Steagall Act in 1999, allowed (IMO) the chief banksters to suck in the smaller financial players, (in reality, forcing them IMO to play in their pre-rigged casino to "remain competitive")...... then, GLOBAL FINANCIAL CRISIS.....

Then, of course, the US Fed to the "RESCUE"

See: http://www.bloomberg.com/news/2010-12-02/federal-reserve-may-be-central-bank-of-the-world-after-ubs-barclays-aid.html