Executive Order 6102 Research Paper

The Gold Standard was the framework by which the value of cash was characterized in terms of gold, for which the money could be traded. The Gold Standard ended up being deserted in the Depression of the 1930s. Friedman felt that,“The gold standard is not feasible because the mythology and beliefs required to make it effective do not exist. This conclusion is supported not only by the general historical evidence referred to but also by the specific experience of the United States” ( “The Gold Standard:Please Stop”).Economists who contradict the Gold Standard may perceive what must be accomplished with a specific end goal to make a centrally controlled paper standard better than a decentralized Gold Standard. Milton Friedman poses the key question: "How can we establish a monetary system that is stable, free from irresponsible tinkering, and

The fifth amendment of the U.S. Constitution allows the government to take land if they provide compensation to the owner of the property. Eminent domain is not only a federal power. It can be done by the state and city because of the mirror exercise.

The Coinage Act of 1873 was one of the major reasons why the Populist movement started and began forming. There were no real instant effects of the Coinage Act, and not many citizens in America used silver anyway (Friedman). Long term however, the United States would never be the same economically thanks to this monumental legislation. Officially accepting the Gold Standard, the American economy raised the demand for gold immensely, and as a result many gold deposits within America became depleted (Friedman). Consequently, the dollar and employees of America at the time became connected and tied to gold (Friedman). This was not a beneficial relationship, and the United States had become dependent on gold. Add in the fact that gold was being depleted rapidly and the demand for it was growing exponentially

Executive order is a rule or order issued by the president to an executive branch of the government and having the force of law. Executive Order (EOs) were used since President George Washington but were not mandated to be publicly released until 1900. To date, there have been thirteen thousand eight hundred and seven executive orders. Many argue that these orders are unconstitutional as it gives one-person authority to make changes without consequences and without the consent of Congress. The term executive order is not a principle found within the Constitution. EO is derived from Article II, Section I of the Constitution in which it states, “the executive Power shall be vested in a President of the United States of America”. The term executive power was never defined, leaving it open to the interpretation of each president. That statement coupled with Article II, Section III “he shall take Care that the Laws be faithfully executed” has been the backbone of how presidents have been able to create these orders.

Faced with this economic decline, came other factors that included unemployment and lack of confidence in banks (Church 100). Restoring faith in banks across the United States was one goal for FDR. As depositors lost confidence in the national bank, over $1,000,000,000 was taken out in cash and hoarded (Boardman 64). The Emergency Banking Act closed all banks for four straight days, and put them under inspection by the national government (Schraff 52). Banks were put under meticulous scrutiny by the Treasury Department. The U.S. government demanded that all hoarded gold be returned and all of the $1,000,000,000 was deposited (Boardman 65). Banks were allowed to open only under a strict system of licensing (Schraff 52). Another banking program was The Federal Deposit Insurance Corporation, or FDIC, which was created by Congress to guarantee deposits up to $5000 (Gupta). In the case

"Property being an inviolable and sacred right, no one may be deprived of it except when public necessity..."

     During Grant’s administration the monetary issues were inflation, cheap money, and greenbacks. The debtors, especially farmers, wanted cheap money. However, Grant vetoed the bill to print more money, and supported withdrawing greenbacks from circulation.

Not mainly from their government paycheck but from the whispers of top CEOs and entrepreneurs of the main monopolies. Also, the government was very keen to stab the farmers in the back by not allowing silver as another main rare metal into the Federal Reserve for the backing of their money. The people demanded a “16 to 1” for the federal funding. This meant that 16 ounces of silver could be the same worth as 1 ounce of gold. James B Weaver was a strong supporter of this and wanted to eradicate the weapons of the big trusts that were violent threats of fraud, bribery, and pillage (Doc. F). J. Laurence Laughlin was very adamant about this by denouncing the cries of the farmers by saying that all people were feeling the pressure of the crisis but the introduction of silver into the US funding would not be a magic cure (Doc. E). Also in President McKinley’s acceptance speech, he also deems these cries empty and saying that time will heal all wounds (Doc. B). It would take more than just time to heal this gaping gouge into the body of the United States thanks to the knife of unilateral laws of congress and the interpretation of the Supreme Court.

Their way in was through Abel Corbin, President Grants brother-in-law. For a payment of 1.5 million dollars, Corbin agreed to help with the scheme. They wanted to take over the United States treasury and control everything. Gould’s idea was that if the treasury didn’t sell any gold the price could go from $130 to $150 and this would help the economy. President Grant, by this time, was part of the scheme. He was not fully aware of everything going on but he knew enough. Grant had realized that Gould made a bribe attempt and was outraged by it. This led Gould to realize that his plan may have been falling apart. He figured the only way out before the collapse of the market was to betray his partner. So he did what he felt he could do to save himself. Soon after this the price collapsed into the $130’s and continued to mumble. More and more men were becoming poor at the gold exchange.

The reasoning for such an amendment was obvious. What the amendment really expresses are the rights to officials and people alike. An official

22. Specie Circular- proclamation issued by Jackson in 1836 stipulating that only gold or silver could be used as payment for public land.

domestic taxes and trade fees be paid in silver. As a result of this the whole world was affected

During his presidency, William McKinley had many domestic affairs to deal with. Amid the most significant issues, McKinley’s tariff legislation was a big one. Bimetallism was also an important issue. The McKinley administration went after an agreement that would include silver, as a standard European currency. McKinley didn’t like the idea so he began promoting a completely gold-based currency. In 1900, he signed the Gold Standard Act, which officially ended the use of silver as a standard of United States currency and established gold as the only standard. This still affects us today because although no country uses the gold standard, there is a rising support for its reintroduction in the hope of regulating U.S.

The gold standard regulated the quantity and growth rate of the nation’s money supply. The Federal Reserve was charged with the duty of regulating the inflow and outflow of gold by increasing or decreasing the discount rate. The discount rate is the interest rate the Fed charges depository banks that borrow reserves from it. An outflow of gold meant an increase in the money supply and this was triggered by a decrease in the discount rate. On the other hand an inflow implied an increase in the discount rate and hence a restriction of the money supply. The activities of the Federal Reserve with regard to the gold standard were to be in accordance with all other countries on the standard such as the United Kingdom in other for the system to work effectively.

Eight decades has elapsed since the outbreak of the Great Depression, but the continuing mystery of its cause keep provoking academic debates among scholars from various fields. Eichengreen and Temin joint the debates by linking the gold-standard ideology with the cause of the Great Depression. They content that because of this ideology monetary and fiscal authorities implemented deflationary policies when the hindsight shows clearly that expansionary policies were needed. And these contractionary policies consequently pushed the stumbling world economy into the Great Depression. Eichengreen and Temin put heavy weight on analyzing why the prewar gold standard could be a force for international financial stability while interwar gold