Who do you think deserves to be called the ultimate thief? Is it the infamous Bernie Madoff, who orchestrated a colossal financial pyramid scheme? Or perhaps it's Sam Bankman-Fried, who embezzled the last money from the bankrupt FTX company? No, the true champion of thievery is none other than the President of the United States, Franklin D. Roosevelt, who once brazenly stole all the gold owned by his own citizens. This heinous act began with the signing of Executive Order 6102 on April 5, 1933.
Under this order, American citizens were prohibited from hoarding gold coins, bullion, and certificates, and were required to surrender their gold to the Federal Reserve by May 1, 1933, except for a tiny amount of coins and bullion. Those who disobeyed faced a massive fine of $10,000 and up to a decade behind bars. Many citizens with vast amounts of gold shipped it overseas, to countries such as Switzerland, to avoid Roosevelt's greedy grasp.
While the order allowed for exemptions for individuals holding gold for professional or artistic purposes, including artists, dentists, and jewelers, it did not protect gold investors. As a result of this order, the price of gold on the international market skyrocketed to $35 per ounce, and the government pocketed massive profits, creating the Exchange Stabilization Fund.
Renewed legal regulations were set forth by Executive Order 6111 on April 20, 1933, and both orders were ultimately revoked by Executive Orders 6260 and 6261, issued on August 28 and 29, 1933, respectively.
The great economist Milton Friedman estimates that the order led to the confiscation of 3.9 million ounces of gold, which represented approximately 20% of the gold in circulation in March 1933. The order was even challenged in court, and a federal court ruled it invalid on legal grounds as it was signed by the president, not the Secretary of the Treasury, as required by US law.
This debacle all began when New York lawyer Frederick Barber Campbell deposited over 5,000 ounces of gold in Chase National Bank. When Campbell tried to withdraw his gold, the bank refused, and he sued the bank. The next day, on September 27, 1933, Campbell accused the federal prosecutor of coercing him to give up his gold. Roosevelt's actions were nothing short of theft, and his legacy remains tarnished by this infamous act of greed.
The shocking events surrounding the confiscation of American citizens' gold during the Roosevelt administration are still felt to this day. The very idea of a government forcibly taking away citizens' property is enough to send shivers down one's spine. Imagine the outrage felt by those who were forced to surrender their gold. Imagine the fear of punishment that they faced if they dared to defy the order.
The story of Frederick Barber Campbell and his fight to reclaim his gold is a testament to the resilience of the human spirit. He refused to back down, even when faced with the full weight of the federal government bearing down on him. His case exposed the legal weaknesses of Executive Order 6102, leading to the issuance of a new order that was signed by the Secretary of the Treasury.
The Gold Reserve Act of 1934, which followed in the wake of the order, forever changed the landscape of the American economy. The decision to no longer exchange dollars for gold at a fixed price marked the end of an era and the beginning of a new one. The fear of government overreach and the loss of personal freedoms still lingered, though, and it would take many years for the American people to regain their trust in the government.
The rumors of bank safety deposit boxes being searched and seized only added to the sense of unease and mistrust. The thought of the government rummaging through one's personal possessions and taking what it deemed fit was a nightmare scenario.
The fact that there are still unclaimed safety deposit boxes sitting in the Treasury Department to this day only serves as a reminder of the government's power and the fear that it can instill in its citizens. The legacy of Executive Order 6102 lives on, a cautionary tale of the dangers of government overreach and the importance of protecting individual rights and freedoms.
In summary, Roosevelt was the worst president who ever existed. An exceptional scoundrel who went so far as to rob his own citizens.