VictoryHighway commented:
Quote:
Pretty ironic that a commem honoring FDR was made of gold, when he was the one who prohibited Americans from owning gold and forced them to turn in their gold for paper.
While I agree that, on the surface, the decision might seem ironic, I believe it is far less ironic once FDR's Executive Order 6102 is more fully understood.
Why? The Order did not prohibit the ownership of gold, it prohibited "the withdrawal and withholding of gold coin, gold bullion or gold certificates from the recognized and customary channels of trade." In the Order, such withholding was referred to as "hoarding" and this was what FDR was looking to discontinue (for reasons too complex to go into here).
The Order included multiple exemptions. One was for "legitimate and customary use in industry, profession or art" another was for gold that had been imported for the purpose of re-exporting; there were others.
Individuals without demonstrated business needs for gold were allowed to hold onto up to $100 worth of gold coins, gold bullion and/or gold certificates. Exempt from the Order were "gold coins having a recognized special value to collectors of rare and unusual coins." So, if a case could be made that a particular gold coin was "collectible," it was exempt from the requirement to turn it in.
With FDR putting a specific exemption to save collectible gold coins in his Order, the decision to mint his commemorative coin in gold seems (to me) to be more the natural and ideal choice vs. an ironic selection. With the possible exception of Richard Nixon who took the US off the gold standard in 1971 and Gerald Ford who lifted the ban on gold ownership in 1974, which US president comes first to mind when you think of gold?
Also, the Order did not specify that payments for gold turned in needed to be made via paper money. The Order specified that payments were to be made in "an equivalent amount of any other form of coin or currency coined or issued under the laws of the United States." As such, a person turning in gold coins/bullion/certificates could ask for their payment to be made in silver dollars (or some other silver denomination) if they wanted precious metal in return.
One new/additional comment:
FDR's Executive Order did not "force" folks to turn in their gold - it did not order any type of law enforcement agency to conduct house-to-house searches for gold. Granted, it did take gold coins out of daily consumer trade, and included the potential for a prison term of up to 10 years and/or a fine of up to $10,000 for ignoring the order, but many folks quietly kept their gold and passed it on to descendants - just check out how many St. Gaudens Double Eagles are available in the marketplace today at near bullion value as evidence in support of this. They would be far scarcer today if large numbers weren't held on to and hidden away back in 1933.
Posted 11/04/2022 1:17 pm
