Gold and Silver Certificates: The Story Behind The Story Part 4

By: Douglas V. Gnazzo | Tue, Jul 25, 2006
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Honest Money Gold & Silver Report

"The fate of the nation and the
fate of the currency are one and the same." [1]


This week's paper will cover the third paragraph quoted from Wikipedia that appeared in the Precious Metals Timing Report of June 24, 2006.

"President-elect Franklin Roosevelt felt the same way. He persuaded Congress to recall all gold coins, gold bullion, and gold certificates, which circulated alongside Silver Certificates. This prompted Congress to quietly place the U.S. on the silver standard. On May 12, 1933, the Agricultural Adjustment Act was passed, which included a clause allowing for the pumping of silver into the market to replace the gold. A new Series 1933 $10 Silver Certificate was printed and released, but not many were released into circulation." [2]

The sentence "President-elect Franklin Roosevelt felt the same way refers to the last sentence in the preceding paragraph that was covered in last week's Gold & Silver Certificates: The Story Behind the Story Part 3:

"Many citizens blamed the fluctuating price of gold, which directly affected the U.S. dollar because it was pegged to the value of gold." [3]

It follows that the way President-elect Roosevelt felt was the same way as how "many citizens blamed the fluctuating price of gold, which directly affected the U.S. dollar because it was pegged to the value of gold."

Whose to Blame

This implies that the blame of the alleged fluctuating price of gold, which alleges to negatively affect the U.S. dollar, is due to the fact that the dollar was pegged to gold: at least that is the reason the above quoted article offers to explain why President Roosevelt was persuaded to recall all gold coins, gold bullion, and gold certificates.

Before preceding with any further elaboration as to why this is not correct, recall what was illustrated in last week's part three of the series concerning the purported fluctuating price of gold:

"We have seen that a dollar of the Constitution (silver dollar coin) is not the same as a dollar bill or a Federal Reserve Note.

However, what is meant by the U.S. dollar in the above-quoted sentence is the U.S. dollar bill or Federal Reserve Note, otherwise such a reference would mean that gold was being pegged to itself.

It is not gold that lost its value - it is the Federal Reserve Note that lost value, and the elite moneychangers made it appear that gold was at fault: gold is their lackey - their whipping boy.

Once again, to confuse the dollar bill (FRN) with the dollar of the Constitution is utter folly, which is the intended purpose: to confuse the public into accepting that which is unacceptable: paper fiat debt-money or Federal Reserve Notes.

Only when the constitutional hard currency system is not adhered to, is it possible to speak of a fluctuating price of gold in paper dollar bills, precisely because the gold is priced in dollar bills, which is not what the Constitution mandates to be the case.

It is the purchasing power of the dollar bills that is changing, not that of gold. The system has been turned inside out and upside down. It is utter nonsense, akin to the Tower of Babel, from which all elite moneychangers appear to be descended.

If the original hard currency system of silver and gold coin is adhered to, there is no such thing as a price for gold expressed in Federal Reserve Notes, as they are not constitutional dollars, which is a specific weight of silver: 371.25 grains - one Silver Dollar Coin." [4]

The above quote from last week's Gold & Silver Certificates: The Story Behind the Story Part 3 clearly indicates the lack of understanding of not only the public, but of President Roosevelt as well, concerning the incorrect suposition that fluctuating prices of gold affected the value of the Federal Reserve Note.

Partnership in Crime

We shall now proceed with the second sentence in the quoted paragraph from the Precious Metals Timing Report of June 24, 2006. Please note the informantion in the PMT report was taken from Wikipedia, an on-line encyclopedia; it being the original source of the misguided "information" on monetary history that was relied upon:

"He persuaded Congress to recall all gold coins, gold bullion, and gold certificates, which circulated alongside Silver Certificates." [5]

It is true that Roosevelt persuaded Congress to recall private ownership of gold coins, bullion, and certificates; however, he did not act on his own - he had plenty of help. The help came the night before he became President. At the time Hoover was still on his watch as President, and Eugene Meyers was Governor of the Federal Reserve.

The following Resolution was written by Eugene Meyers Governor of the Federal Reserve. It was given to President Hoover on March 3, 1933. Roosevelt was sworn into office on March 9, 1933.

Resolution Adopted by the Federal Reserve Board of New York

WHEREAS, In the opinion of the Board of Directors of the Federal Reserve Bank of New York, the continued and increasing withdrawal of currency and gold from the banks of the country has now created a national emergency, and

WHEREAS, It is understood the adequate remedial measures cannot be enacted before tomorrow morning,

NOW, THEREFORE, BE IT RESOLVED, That in this emergency the Federal Reserve Board is hereby requested to urge the President of the United States to declare a bank holiday Saturday, March 4, and Monday, March 6, in order to afford opportunity to governmental authorities and banks themselves to take such measures as may be necessary to protect the interests of the people and promptly to provide adequate banking and credit facilities for all parts of the country.

Proposed Executive Order


WHEREAS the nation's banking institution's are being subjected to heavy withdrawals of currency for hoarding; and

WHEREAS there is increasing speculative activity in foreign exchanges; and

WHEREAS these conditions have created a national emergency in which it is in the best interest of all bank depositors that a period of respite be provided with a view to preventing further hoarding of coin, bullion or currency or speculation in foreign exchange, and permitting the application of appropriate measures for dealing with the emergency in order to protect the interests of all the people; and

WHEREAS it is provided in Section 5 (b) of the Act of October 6, 1917, as amended, that "The President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange and the export, hoarding, melting, or earmarking of gold or silver coin or bullion or currency";

WHEREAS it is provided in Section 16 of the said Act that "Whoever shall willfully violate any of the provisions of this Act or of any license, rule, or regulation issued there under, and whoever shall willfully violate, neglect, or refuse to comply with any order of the President issued in compliance with the provisions of this Act shall, upon conviction, be fined not more than $10,000, or, if a natural person, imprisoned for not more than ten years, or both";

NOW, THEREFORE, pursuant to the authority granted by said Act, I hereby order, direct and declare that:

1. From Saturday, the fourth day of March, to Tuesday, the Seventh day of March, Nineteen Hundred and Thirty Three, both dates inclusive, there shall be maintained and observed throughout the United States of America a bank holiday for all of the purposes hereinafter set forth;

2. During said holiday, no banking institution as hereinafter defined shall pay out, export, earmark, or permit the withdrawal or transfer in any manner or by any device whatsoever of any gold or silver coin or bullion or currency or take any other action which might facilitate the hoarding thereof; nor shall any such banking institution pay out deposits, make loans or discounts, deal in foreign exchange, or transact any other banking business whatsoever.

3. Upon the expiration of said holiday and until otherwise ordered by the President of the United States, such banking institutions may pay out, export, earmark or permit the withdrawal or transfer of gold or silver coin or bullion or currency, or deal in foreign exchange to extent as may be permitted by license or otherwise under regulations issued by the Secretary of the Treasury with the approval of the President.

4. The Secretary of the Treasury, with the approval of the President, is authorized and empowered to prescribe such regulations as he may find necessary to carry out the purposes of the order.

5. The term "banking institution" as herein used shall include all Federal reserve banks, national banking associations, banks trust companies, savings banks, building and loan associations, credit unions, or other corporations, partnerships, associations or persons engaged in the business of receiving deposits, making loans, discounting business paper, or transacting any other form of banking business." [6]

The White House
March, 1933.


The following is a letter sent by President Hoover to Eugene Meyer:

My dear Governor Meyer:

I received at half past one this morning your letter dated March 3rd. I must assume that this letter was written on the basis of information received by you prior to 11:30 o'clock last night for the reason that before your letter was sent you had certain information as follows:

a. At 11 o'clock last night the President elect had informed me he did not wish such a proclamation issued.

b. The Attorney General had renewed the same opinion which he had already given to the Board that the authorities on which you were relying were inadequate unless supported by the incoming Administration.

c. That groups of representative bankers in both Chicago and New York, embracing members of the Board of Directors of the Federal Reserve Banks in those cities, were then in conference with the governors of the states of Illinois and New York, and that the governors of these two states were prepared to act if these representative groups so recommended. It appears that the governors did take action under their authorities, declaring a temporary holiday in these two critical states, and thus accomplishing the major purposes which the Board apparently had in mind.

In view of the above I am at a loss to understand why such a communication should have been sent to me in the last few hours of this Administration, which I believe the Board must now admit was neither justified nor necessary.

Yours faithfully, Herbert Hoover [7]

The Unseen Hand

As the above documentation above reveals, it was the Federal Reserve that was the force steering Roosevelt's course of action regarding banking and monetary policy, especially towards private gold holdings outside of the banking system.

It is also evident that President Hoover was familiar with the banking issues as his letter to Governor Myers clearly indicates. Hoover states that President-elect Roosevelt did not want such a proclamation made, yet within a week's time, President Roosevelt makes the exact public declaration.

Who or what changed his mind? From the correspondence before hand, and the almost word for word policy that was thereafter implemented - it is obvious the elite money interests were behind it all. Roosevelt started his unconstitutional confiscation of the public's private gold holdings the day after he was sworn in as President.

The First Salvo

In 1933, Congress allowed President Roosevelt to use an amended version of The War Powers Resolution to declare a national emergency and to confiscate We The People's gold using:

Presidential Executive Order 6102; the Emergency Banking Relief Act of 1933 US Statutes at Large; and the 1934 January 31 Presidential Proclamation (no. 2072) of Franklin D ...The Gold Reserve Act. [8]

The reason Roosevelt committed the above acts is because he was told to commit them; by the Secretary of the Treasury Mr. McAdoo, by the board of Governors of the Federal Reserve, by Eugene Meyers and many others - all advised the President to implement his reign of monetary terror upon the people; and he followed suit: in spades.

Here is what one Congressman had to say to the House of Representatives immediately after the forced passage of the bill, as he wasn't recognized by the Chair to speak prior to passage of the bill.

Congressman Lundeen:

Mr. LUNDEEN. Mr. Speaker, today the Chief Executive sent to this House of Representatives a banking bill for immediate enactment. The author of this bill seems to be unknown. No one has told us who drafted the bill. There appears to be a printed copy at the speakers desk, but no printed copies are available for the House Members. The bill has been driven through the House with cyclonic speed after 40 minutes debate, 20 minutes for the minority and 20 minutes for the majority.

I have demanded a roll call, but have been unable to get the attention of the Chair. Others have done the same, notably Congressman SINCLAIRof North Dakota, and Congressman BILL LEMKE, of North Dakota, as well as some of our other Farmer Labor Members. Fifteen men were standing, demanding a roll call, but that number is not sufficient; we therefore have the spectacle of the great House of Representatives of the United States of America passing, after a 40-minute debate, a bill its Members never read and never saw, a bill whose author is unknown.

The great majority of the Members have been unable to get a minute's time to discuss this bill; we have been refused a roll call; and we have been refused recognition by the Chair. I do not mean to say that the Speaker of the House of Representatives intended to ignore us, but everything was in such a turmoil and there was so much excitement that we simply were not recognized.

I want to put myself on record against procedure of this kind and against the use of such methods in passing legislation affecting millions of lives and billions of dollars. It seems to me that under this bill thousands of small banks will be crushed and wiped out of existence, and that money and credit control will be still further concentrated in the hands of those who now hold the power.

It is safe to say that in normal times. after careful study of a printed copy and after careful debate and consideration, this bill would never have passed this House or any other House. Its passage could be accomplished only by rapid procedure, hurried and hectic debate, and a general rush for voting without roll call.

I believe in the House of Representatives. I believe in the power that was given us by the people. I believe that Congress is the greatest and most powerful body in America, and I believe that the people have vested in Congress their ultimate and final power in every great, vital question, and the Constitution bears me out in that.

I am suspicious of this railroading of bills through our House of Representatives, and I refuse to vote for a measure unseen and unknown.

I want the RECORD to show that I was, and am, against this bill and this method of procedure; and I believe no good will come out of it for America. We must not abdicate our power to exercise judgment. We must not allow ourselves to be swept off our feet by hysteria, and we must not let the power of the Executive paralyze our legislative action. If we do, it would be better for us to resign and go home-and save the people the salary they are paying us.

I look forward to that day when we shall read the bill we are considering, and see the author of the bill stand before the House and explain it, and then, after calm deliberation and sober judgment- after full and free debate-I hope to see sane and sensible legislation passed which will lift America out of this panic and disaster into which we were plunged by the World War. [9]

It was a bit more than persuasion of Congress that forced the bill through - coercion seems more appropriate of a description. For a more detailed analysis of the issue of Roosevelt's confiscation horror, see Social Security: The Incubus and Succubus Nemeses, Part 4.

Once again we see the information under review was incorrect, misleading, and left out the true story behind the story. More to be forthcoming.

Come visit our new website: Honest Money Gold & Silver Report
And read the Open Letter to Congress

Coming Soon: A Request For An Audit of the U.S. Gold Reserves

[1] Franz Pick
[2] Precious Metals Timing by Ron Rosen
[3] Same
[4] Gold & Silver Certificates Part 3 by Douglas V. Gnazzo
[5] Precious Metals Timing by Ron Rose
[6] Letter From Eugene Meyers & Federal Reserve Board to President Wilson
[7] Reply Letter From Wilson to Meyers
[8] Open Letter to Congress by Douglas V. Gnazzo
[9] 77 CONG. REC. 83 1933



Douglas V. Gnazzo

Author: Douglas V. Gnazzo

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

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