Many people believe that the currency we use here in the U.S. is money. I believe one of the main reasons for this is because most people have never learned the history of money in the U.S. For reasons I will leave for another post, gold and silver have been the only forms of money mankind has ever known. Many different things have been used for currencies but only gold and silver are money and nothing else.
Over the past 80 years gold and silver have been taken away from the public and people have come to have blind faith in paper currency as well as electronic credits, even though they have no intrinsic value. There is no difference between a $1 bill and a $100 bill. One is valued higher than the other because the Government says so and people accept it as so.
By executive order in 1933, President Roosevelt robbed the american citizens of their private property (gold) and over night gold ownership beyond 5 oz. was made illegal in the U.S. The silver story is more interesting and happened over a longer period of time. The following is the story of how silver was taken from the american people.
- Before we get started let's first look at the 1792 U.S. Coinage Act that was passed by congress in that year. It stated that the debasement of money was punishable by the death penalty. This act is still in effect today although highly modified over two centuries and obviously not enforcing death on anyone.
- During the Great Depression, Franklin Roosevelt signed the Silver Purchase Act Of 1934 and after this the U.S. began to collect the largest amount of silver on the planet with 3.5 billion ounces.
- Between 1934 and 1963 the notes issued by the Federal Reserve System promised to pay the bearer of the note in "lawful money" on demand.This bill says Silver Certificate on top and One Silver Dollar payable to the bearer on demand on the bottom.
- By the early 1960's an ounce of silver had risen to $1.29/per oz. due to over printing of the currency notes. The currency supply had been inflated and silver's price was catching up. At $1.29 the amount of silver in the silver coins had the same value. If the price were to rise beyond that price people could go into a bank with the paper notes and exchange them for silver dimes quarters and half dollars, melt them down, then sell them for a profit. The Government knew this and started selling silver to hold down the price.
- They say that throughout history, good money always forces out the bad and this was exactly what was happening. The change in the U.S. was disappearing and as a result the government was forced to start removing silver from the U.S. coinage in 1965.
- Keep in mind number one above: Under authorization by Pres. Lyndon Johnson our coins were reduced to 40% silver from 90% "Lawful Money".
- With the price of silver continuing to rise as the Gov. printed more and more notes, Pres. Johnson issued a proclamation on June 24th, 1968, that all Federal Reserve silver certificates were merely fiat legal tender and could not be redeemed for silver (real money) any longer. Basically the paper was money because the government said it was.
- On December 31st 1970, President Nixon signed an amendment into law of the Bank Holding Company Act. This gave the treasury the right to totally debase our coins by using zinc and other worthless metals.
So we find ourselves where we are today with a falling U.S. dollar that is eating away at your purchasing power and silver that is $24.75 as of this post.