@ asyncmind
2025-02-08 02:51:44
A Story of a Businessman During FDR’s Gold Confiscation Order (Executive Order 6102, 1933)
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Chapter 1: The Glint of Prosperity
James “Jim” Calloway was a self-made businessman in Chicago, a city of ambition and steel. He had built his fortune in textiles, importing fine fabrics from Europe and outfitting the growing class of professionals who now filled the streets in sharp suits. Business was booming, but Jim knew that paper money was only as valuable as the confidence behind it.
That’s why, over the years, he had quietly amassed a personal reserve of gold coins and bullion—his hedge against the storms of an uncertain economy. He had watched the stock market crumble in 1929, seen men leap from buildings in desperation, and listened as banks slammed their doors, swallowing the life savings of hardworking Americans. But gold—gold never lied.
At the back of his home, hidden behind a false panel in his oak study, lay a strongbox filled with glinting security. To Jim, gold was the one currency immune to the whims of politicians.
But everything changed in the spring of 1933.
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Chapter 2: The Executive Order
Jim was in his office, reviewing invoices, when his secretary rushed in. “Mr. Calloway, sir… the President just signed something… about gold.”
Jim raised an eyebrow. “What do you mean?”
She placed the morning newspaper in front of him. Bold letters stretched across the page:
FDR Orders Surrender of Gold to Federal Reserve
His hands tightened as he read the details. President Franklin D. Roosevelt had signed Executive Order 6102, making it illegal for private citizens to own gold beyond a small amount. All holdings had to be surrendered to the government by May 1st, 1933—just weeks away. The government would pay $20.67 per ounce, but after that, gold ownership would be a crime punishable by imprisonment and heavy fines.
Jim exhaled sharply. “They’re robbing the people in broad daylight.”
Banks had already begun restricting access to gold deposits. Federal agents were expected to monitor compliance, and those found hoarding gold could be punished with fines up to $10,000—a small fortune, more than the price of a house.
Jim knew what was happening. The government wanted control over the currency. It needed to inflate the dollar, but it couldn't do that while citizens held gold as a hedge against devaluation.
“They’re going to debase the currency,” he muttered. “They’ll take the gold and leave us with paper.”
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Chapter 3: The Great Dilemma
Jim had a decision to make. He could follow the law, turn in his gold, and take the government’s price like a good citizen. Or he could resist, risking prison for the right to keep what was his.
He wasn’t the only one struggling with the decision. All around Chicago, rumors swirled of businessmen smuggling gold out of the country, burying it in backyards, or melting down coins into untraceable bars.
One night, he met with a close friend, an old banker named Henry Lowry. Henry had already turned in half of his gold but had stashed some away in a Swiss account. “Listen, Jim,” Henry whispered over a glass of whiskey. “This thing isn’t worth getting locked up over. The Feds are already raiding safety deposit boxes. They don’t even need a warrant.”
Jim leaned back, jaw tight. “So you’re saying just give up?”
“I’m saying if you’re caught, you lose everything. Not just the gold. Your business. Your reputation. Your freedom.”
Jim nodded slowly. He had a wife, a daughter. If he was caught hoarding gold, what would happen to them?
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Chapter 4: A Difficult Decision
That weekend, Jim took one last look at his hidden stash. Each coin had a history, a weight that no paper note could match. He ran his fingers over the rough edges of a stack of Double Eagles.
A thought crept into his mind: If they take this, I have nothing to hedge against inflation. They’ll print dollars endlessly, and I’ll be at their mercy.
But the risk was too high.
On April 27, 1933, Jim walked into the Federal Reserve Bank of Chicago. With a cold expression, he surrendered his gold.
The teller counted it, weighed it, and wrote out a receipt. In exchange, Jim received stacks of paper dollars—$20.67 for each ounce, just as promised.
Days later, the government officially devalued the dollar. The price of gold was raised to $35 an ounce. The American people had been forced to sell low, only for their wealth to be diminished overnight. Jim’s stomach turned as he read the news.
“They stole it,” he murmured. “They stole from all of us.”
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Chapter 5: The Aftermath
Years passed, and Jim never quite forgave himself for handing over his gold. The inflation he feared came true. By the time World War II began, the purchasing power of the dollar had declined, and the gold standard had become a distant memory.
But Jim adapted. He found new ways to hedge—real estate, foreign assets, discreet investments outside of the system. He knew, deep down, that governments would always find a way to strip wealth from those who built it.
The lesson was clear: He who holds the money holds the power.
And the next time the government tried to seize control of the people’s wealth, Jim vowed—he wouldn’t be caught unprepared.
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Epilogue:
Decades later, in 1971, Jim—now an old man—watched on television as President Nixon announced the end of the gold standard altogether. The government no longer even pretended the dollar was tied to real value.
Jim smiled bitterly.
“They called us criminals for keeping gold,” he muttered, swirling his bourbon. “And now they don’t even need it.”
He reached into his desk, pulling out a small, battered strongbox. Inside, a handful of gold coins still gleamed under the dim light.
The government had taken his gold once.
But this time, Jim Calloway had learned his lesson.
They wouldn’t take it again.