Currency: New Deal and After

Currency

Currency: Revolutionary War and Confederation

Currency: The New Republic

Currency: Civil War Developments

Currency: The Federal Reserve System

Franklin D. Roosevelt was inaugurated president in March, 1933, in the midst of the bank collapses. One of his first actions was to take the country off the gold standard. People were ordered to turn in their gold coins; contracts calling for payment in gold were declared invalid. Other forms of money were no longer convertible into gold. The official price of gold was raised from $20.67 an ounce, where it had stood since the 1830’s, to $35 an ounce. American citizens could no longer buy Treasury gold, and even private gold transactions were severely regulated. Gold coins, gold certificates, and national banknotes were withdrawn from circulation. 

After the Depression, U.S. currency became more routine and less interesting. The public can “buy” as much currency as it wants, supplied by the Federal Reserve through the banks. Links to precious metals were disconnected, except for gold and silver coins produced for collectors or investors and not intended to circulate as money. Beginning in 1965, silver was removed from U.S. coins, and silver certificates were discontinued. In 1971, the Treasury ceased to maintain a fixed price for gold or to sell it on demand to international buyers. After United States notes were discontinued in 1969, all paper currency consisted of Federal Reserve notes.