Anonymous <[EMAIL PROTECTED]> >> Just curious, but what was the rationale under which private posession >> of gold was made illegal in the US? It boggles the mind... > ><snip> > >However doing a straight devaluation was politically unacceptable >at the time. Because the dollar was pegged to gold, devaluing the >dollar meant in effect increasing the value of gold in terms of dollars. >This would represent a tremendous windfall to holders of gold. And gold, >by and large, is owned by the rich. > ><snip> > >By eliminating private gold ownership, Roosevelt was able to take a >necessary step to invigorate the economy, devaluing the dollar, while >reducing the risk of a civil war. The rich protested, of course, but >in practice they went along with the measure as they were terrified >of a workers' revolution. > ><snip> >
IIRC many of the wealthy were quick enough to ship huge amounts of gold to Europe. That is one reason I have heard given that the St Gauden's $20 gold pices of that era are possibly poor investments - there is a reservoir of them overseas. Mike
