One Nation Under Gold
Page 41
Comstock Lode, Nevada, xi, 52
Congress, US:
vs. administration, 60, 84, 207–9, 214
and Black Friday, 345
and Civil War, 29
and closing the gold window, 236, 248
and Coinage Acts, 52–54
and the Constitution, 50, 51
and dollar devaluation, 258
and FDR, 91, 92, 94, 100, 128
and gold coins, xi, 261–62, 280–81, 304
and Gold Commission, 286, 291–301, 319
and gold contract clause, 99, 116–17, 119, 121, 124–25, 284–85, 287–91, 323
and gold cover, 208–10, 214–15, 360
and gold reserves, 134–35, 149, 208, 272–73, 323
and gold standard, 56, 71–73
and greenbacks, 39
and IMF bill, 283–84
Legal Tender Acts, xii, 30–35, 50
powers of, 33, 51, 94, 119, 124
and private ownership of gold, 255–59, 263, 265–67, 269, 272, 274
and South Africa, 301–2
and Supreme Court, 51, 120, 121, 125
and World Bank, 264–65, 284
Conlan, John, 273
Connally, John B., 229, 230, 233–34, 235, 237–38, 240–47, 260, 263
Conservative Book Club, 218
Constitution, US:
and balanced budget amendment, 322
and banking system, 16
on gold and silver as legal tender, xi, 3, 31, 32, 33, 34, 48–52
on government’s powers, 34, 119, 321
and price of gold, 133
and slavery, 41
and states’ rights, 35
and Supreme Court, 125
Continental Congress, 31
Coombs, Charles, 198, 211, 249
copper production, 187–90, 191, 241
Corbin, Abel, 37–38, 42–45
Cortez, Hernán, 2
Costamagna, Arthur, 295
Coughlin, Father Charles, 126, 132
Coyne, Herb, 300
Crane, Philip, 255–59, 263, 265, 267, 272–73, 280, 281, 287, 288, 290, 309
“Crime of 1873” (Coinage Act), 52–55, 61, 65, 346
Cruz, Ted, 317
Cummings, Homer S., 97–98, 111–12, 118–19, 120–21
currency:
alternative forms of, 12, 13–14
arbitrage market in, 47
bimetallic standard, xi, 54, 56, 58, 71
and Bretton Woods, xiii
Confederate, 14
contraction policy for, 39–40, 42, 48, 56
devaluation of, xiii, 113, 195–200
digital, 332–33
exchange markets, 228, 232, 288
Federal Reserve notes, 80
floating, 3, 6, 228–29, 235–36, 237, 241, 283
fluid value of, 35, 114, 119
free-market money, 319
gold as, see gold
government management of, 81, 99, 101, 105, 116–17, 118–19, 121
greenbacks, see greenbacks
hard money, 17–18, 28, 31, 34–35, 48, 50, 51, 55, 68–70, 216–20, 223, 272, 333
issued by states, 12, 15–16
and legislation, 30–35
metallic basis for, 3, 6, 16–18, 33, 39, 52, 56, 70, 298, 333
and national identity, xv–xvi, 41
not redeemable for metal, 30–35, 39, 216, 219
paper, 12, 13, 15–16, 30–35, 39, 48, 50, 52, 70, 134, 220, 319–20, 336, 344
revaluation of, 150
scrip, 91
sound money, 47, 76, 83, 106, 114, 132
and sovereignty, 35, 118–19
“trade dollar,” 346
US dollar, see US dollar
use-case argument, 32
Curtis, W. E., 59
Dale, William, 230, 231
Dam, Kenneth, 321
Dana, Charles, 69
Debs, Eugene V., 58
Declaration of Independence, anniversary of, 261
de Gaulle, Charles, 175, 261, 295
de Leon, Ponce, 4
Deming, Fred, 169–70
Democratic Party:
and central banks, 17
and 1894 elections, 58–59
and 1896 election, 65–70
and FDR, see Roosevelt, Franklin D.
gold standard opposed by, 293
and hard money, 17, 50, 55, 68–69
and Jackson, 6, 14, 68
party identity, 48–49
Dewey, Thomas E., 138
Dillon, C. Douglas, 171
Dirksen, Everett, 172
Doherty, Roadhouse & Co., 157–58
Dominick, Pete, 265
Doyle, James, 305
Doyle Dane Bernbach, 277
Dred Scott decision, 27, 52
DuBois, W. E. B., 135
Economist, The, 303
Edison, Thomas A., 45
E-gold, 333
Eisenhower, Dwight D., 137–38, 148, 153
Eisenhower administration, 143, 144, 146, 148–54, 157, 238, 249
Elliott, Milton, 91
Emergency Banking Act (1933), 91–94, 97, 99–100, 116
England, see Britain
Environmental Protection Agency, 192
European Common Market, 197–98
Exchange Stabilization Fund (ESF), 121, 122, 182–83, 196
Executive Order 6102 (1933), 86, 87, 88
Faber, Marc, 316
Federal Reserve:
and closing the gold window, 230
establishment of, xii, 79, 80–84, 93, 320
and gold confiscation, 98, 100
and gold cover, 208–9, 210–11
and gold ownership, 152
and gold prices, 103–4, 146, 309, 324
gold reserves of, 96, 145, 206
and gold standard, 91–93, 286, 287, 299–300, 309, 320, 329
and gold sterilization, 127–28
government accounts in, 290
independence and integrity of, 238–40
and international currencies, 130, 197
lack of control by, 90
and meeting of central bankers (1968), 211–13
and paper money supply, 217
Federal Reserve Act (1913), 80–81, 320
Field, Cyrus, 38
First Bank of the United States, 16, 106
Fisk, Jim, 38, 42–47, 77
Ford, Gerald R., 255, 268–70, 273–74, 275, 281, 283, 285, 308
Fort Knox, Kentucky, 110, 128, 134, 196, 227, 271–73
Fowler, Henry, 180, 181, 186, 196, 198, 201, 202, 208, 209
Fox News Channel, 311–13, 315
France:
and Gold Pool, 199–200, 214
gold reserves of, 78, 82
on gold standard, 96, 127, 175, 261
gold stockpiling in, 80, 90, 155
Frankfurter, Felix, 120
Franklin, Benjamin, 14
Friedman, Milton, 98, 204, 249, 263, 289, 291, 346
Galambos, Andrew, 220–21
Garbade, Kenneth, 104
Gates, Thomas S., Jr., 148
Gavin, Francis J., 201, 213
Germany:
currency of, 53, 150, 227–28, 236, 241
gold reserves of, 80, 82, 146, 227
and US balance of payments, 174–75
and World War II, 127, 128
Giscard d’Estaing, Valery, 275
Glass, Carter, 79, 84, 92–93
Glass-Steagall Act (1933), 93, 348–49
global economy, 175–80, 301, 325, 327–28, 336
globalism, opposition to, 133, 210
global monetary system, 196–200, 208, 211, 213–14, 228, 229, 231–33, 245–46, 248, 258, 260–61, 267, 270, 275, 295, 324, 329
global oil crisis, 264, 269
gold:
advertising uses of, 154–55, 163
and ancient world, 15
for artistic use, 99, 140, 154, 160–65, 176, 177, 286
closing the window, xiii, 227, 229�
�53, 294–95, 326
coins, xi, 261–62, 274, 276–81, 294, 300, 304, 319
in contract clauses, 89, 99, 100, 111–27, 284–85, 287–91, 323
as currency, 16, 330
currency backed by, 13, 39, 40, 48, 71–73, 149, 241, 319–20
delinking dollar from, 179, 192, 200, 206–7, 208–15, 223, 227, 229–31, 235, 247–48, 323
discovery of, see gold rush
economic effects of, 5–6, 9, 11, 18, 19–23, 25, 27–28, 315, 329
emotional attachment to, 3–4, 7, 9, 15, 133, 316, 318, 335–37
in Fort Knox, 110, 128, 134, 271–73
glut of, 127–28
government confiscation of, 86, 88–100, 102, 122, 125, 314, 333
indestructibility of, 315
industrial uses for, 55, 71, 99, 176–77
and international transactions, 55, 58, 81, 122, 170, 176
as investment, 7–9, 47, 95, 258–59, 277–81, 288, 297, 304, 315, 330–32; see also gold market
jewelry, 155
limitations of, 12–13, 98–99
myths and fantasies about, 2, 8–9, 18, 20, 22–23, 27, 299
and national pride, 4, 5, 22, 23, 39, 114
and national security, 172–75, 271
in natural state, 135, 136–37
physical quantities of, 12–13, 20, 29, 55, 124, 172, 176, 195–200, 220, 227, 270, 315, 322–23
political identification with, 108–9, 126–27, 315–19, 321, 337
price of, xii, 13, 36, 42–46, 101–3, 105, 121, 127, 131, 133, 135–36, 137, 141–47, 151, 168–70, 171, 173, 176, 198, 213, 215, 229, 245, 259, 261, 265, 269–70, 275–76, 278, 280, 297, 300, 303, 307–8, 309, 323–25, 335
private ownership of, xii, xiii, 7–8, 90, 94–99, 115, 134, 143, 151–53, 154–65, 168, 176, 177, 196–97, 215–16, 223, 248–49, 255–70, 274, 281, 305, 307, 330–32
production of, see gold mining
reserves of, 30, 56, 59–60, 71–73, 80–82, 95, 127, 145, 147, 171, 173
shipping of, 25–27
and silver exchange rate, 33
silver vs., 58, 63–72, 113
and states’ rights, 16
stockpiling of, xvi, 5, 40, 78, 88, 90, 91, 95–98, 127, 128, 144–45, 271, 323
value of, 8, 15, 107, 157, 297
and wars, see war
and wealth, 5, 22–23
and western states, 163, 165, 168–69, 208–9
goldbugs, 126–27, 215, 216, 223–25, 249, 250, 252, 288–300, 316, 320
Gold Commission, US, xiv, 286, 291–301, 308, 316, 317, 319, 320, 326
Gold Corporation of America, 135–36, 137
Goldfinger (movie), 271–72
Goldline International, 313–14, 316
gold mania, xvi, 369–70
gold market:
black market, 156, 157
crash, see Black Friday
dollar-gold market, xii, 127, 158, 330–32
and Federal Reserve, 80–81
fraudulent practices in, 304–8, 313–15, 333
and freedom (“floating crap game”), 308
futures market, 270, 274–75
“Gallagher’s evening exchange,” 46
and gold prices, 102, 105, 141–47, 269–70, 303
government’s role in, 271–72, 275–76
in Krugerrands, xiii, 176, 276–81, 283, 298, 300–302
manipulating, 120–21
and natural gold, 136–37
panic (1967), 196–97
private market, 212, 255–70, 281, 324
rigging, 42–48, 60
speculation in, xii, 38, 42–48
supply and demand in, 315, 322
suspension of, 193, 208
“two-tier,” xiii, 213–15, 232
vulnerabilities of, 47, 198
gold mining:
environmental effects of, 22, 336
global production, xiv, 25, 104
investment in, 20, 102, 269, 270, 286
and natural gold, 136–37
nuclear (Project Plowshare), 186–92, 248
and Operation Goldfinger, xiii, 167, 170–71, 180–93, 304
and “resource curse,” 9
technology in, 304
unskilled labor in, 19–20
US, xiii, xiv, 5, 19, 99, 103, 107, 132, 169, 209, 257, 283, 300, 303–4, 335
gold panic (1869), 37
Gold Pool (1961), xiii, 151, 195, 199–200, 205, 207–8, 212–13
Gold Reserve Act (1934), xii, 105, 121, 134–35, 162, 182
Gold Ring, 38–48
gold rush/discovery:
Alaska, xii, 5, 71, 154
California, xi, 1–3, 5, 6, 9, 10, 18–25, 303
Colorado, 303
downside of, 21–24
North Carolina, xi, 4–5, 287
and private property, 343
secondary industries of, 19
South Africa, xii, 71
speculative sea voyages to, 24–25
and squatter’s rights, 343
and stock market, 27
timing of, 40
gold settlement fund, 81
gold standard:
abandoned in World War I, xii, 81–82
current obstacles to, 322–29
disagreement about meanings of, 294–98, 316, 317, 319–21, 322, 323–25, 328
and “fixed value,” 317
goldbug support of, 223–25, 288–89, 291–94, 299
gold bullion standard, 319, 335
gold-coin standard, 319–20
and Gold Commission, 286, 291–300, 308, 319, 320
and government spending, 321–22
and inflation, 321
as measure of political purity, 326–27, 342
as metaphor, 4, 114
negative aspects of, 78–79, 327–28
shadow gold standard, 325
at state level, 333–37
taking US off, xii, 86, 87–109, 112, 116, 215, 260
US on, xii, xvi, 325–26
wish for return to, 3, 6, 14–15, 42, 47, 48, 52, 56, 58–59, 65, 71–73, 82–83, 108–9, 132, 133–34, 136, 138–39, 256, 285–86, 300, 309, 311, 316–21, 329, 333–34
Gold Standard Act (1900), xii, 71–73
Goldwater, Barry M., 257, 291
Gonzalez, Henry, 266
Gould, Jay, 38–48, 77
government:
bailout of, 63, 75
deficit spending by, 34, 217, 228, 321–22
and gold market, 271–72, 275–76
gradualism in, 231–32
laissez-faire advocates in, 307
land belonging to, 20–21
money controlled by, 217–18, 219, 224, 232, 259–61
payments in gold and silver to, 30, 114
powers of, 15–16, 31, 32–35, 47, 50, 52, 94, 99, 116–17, 118–19, 122, 124, 217–18, 287, 321
size of, 15–16, 28, 286, 289, 292, 299
suspicions against, 272–73, 316, 318, 333, 342
and war, see war
Grant, Ulysses S., 37–40, 41–44, 46–48, 54, 113
Graves, Richard L., 160–64
Great Britain, see Britain
Great Depression, 82–83, 87–91, 95, 111–12, 114, 128, 159, 287, 318, 322
Great Recession (2008), 8, 307, 311, 318, 329, 335
Great Society, 214
Greenback Party, 55
greenbacks, xii, 6, 14, 31–35, 39, 42, 48, 49, 52, 56, 58, 72, 80, 95, 113, 119, 321, 344
Greenspan, Alan, 217, 259, 286, 294, 299–300, 329
Grier, Robert C., 49, 51
Gruening, Ernest, 167–69
Haberler, Gottfried, 231
Haldeman, H. R., 239, 240, 241, 242, 245
Hamilton, Alexander, 14, 31
Hammond, Bray, 35
Harkin, Victor, 272
Harrison, Benjamin, 57
Harrison, George, 93, 104
Hauptmann, Bruno, 106
Hayek, F. A., 263, 328
Hazlitt, Henry, 2
20
Heinze, Fritz, 77
Helms, Jesse, 278, 281, 284–92, 298
Hepburn v. Griswold, 49–51
Hill, David Bennett, 66
Hilton, Larry, 333
Hofstadter, Richard, 67–68
Hoover, Herbert, 82–83, 84–85, 96, 100, 108, 114–15, 132, 148
Hoover administration, 87, 88, 89, 91, 95–96, 98, 100, 102, 248
Hornig, Donald, 166, 181, 184–85
Hosmer, Craig, 188–89
Huckabee, Mike, 312
Hughes, Charles Evans, 119, 124, 125
Hughes Tool Company, 154
Hull, Cordell, 88
Humphrey, Hubert H., 208, 233–34, 267
Hunt, H. L., 152
Hunt brothers, 307
Ickes, Harold L., 113
immigration, and gold rush, 21–22, 23
India, 264, 265, 335
Industrial Revolution, 33, 34
International Development Association (IDA), 263–66, 268, 292
International Gold Bullion Exchange (IGBE), 305–6
International Monetary Fund (IMF), 131, 133, 149, 152, 174, 177, 179, 198, 207, 211–13, 228, 233, 236, 275, 279, 283–84, 290, 292, 323, 336, 355
investors:
in commodities, 275
nongold vehicles for, 215–16, 224, 225, 249, 307, 312, 331
see also gold; gold market
isolationism, 109, 128, 133, 308
Jackson, Andrew:
and Democratic Party, 6, 14, 68
on hard money, 31, 34, 35, 48, 51, 68
and national banks, 16–17, 106, 218, 290, 336, 342
and populism, 55
and Supreme Court, 124
Jackson, Henry “Scoop,” 169, 180
Jackson, Robert, 112–13
James True Associates, 216
J. Aron & Company, 300
Javits, Jacob, 206–7
Jefferson, Thomas, 14
John Birch Society, 216, 272–73, 308
Johnson, Andrew, 39, 41, 50, 51
Johnson, Harold, 255, 257
Johnson, Lyndon B., 154, 166, 169, 172, 197, 202, 211, 214, 223, 230, 329
Johnson administration, 167, 169–71, 177–82, 186, 189–93, 197–98, 200–211, 213–15, 227, 232, 235, 249
Jones, Jesse, 103
Jones, John P., 53–54
Jordan, Jerry, 293
Kemp, Jack, 267, 291, 308–9
Kennecott Copper Corporation, 187–88
Kennedy, John F., xvi, 144, 147–48, 153–54, 171–72, 176, 179, 230, 232, 233, 249
Kennedy, Joseph P., 126, 172
Ketchum, Bill, 267
Keynes, John Maynard, 130, 327
Kissinger, Henry A., 232, 264
Klondike (Alaska), gold rush in, xii, 5, 71, 154
Knickerbocker Trust, 77
Knox, Frank, 95, 108
Korean War, 132
Kruger, Paul, 276, 279
Krugerrand coins, xiii, 176, 276–81, 283, 294, 297, 298, 300–302
Laffer, Arthur, 296, 299, 326