On This Day

April 5, 1933

Executive Order 6102

On this day in 1933, Executive Order 6102 was signed by President Franklin D. Roosevelt, "forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States."

The stated reason for the order was that hoarding of gold during the early years of the Depression was stalling economic growth and making the depression worse. The main rationale behind the order was to remove the constraint on the Federal Reserve, that prevented the increase of the money supply. The Federal Reserve Act from 1913 required the Reserve to have a 40% gold backing of notes issued.

Persons were permitted to own up to $100 in gold coins. Violation of the order was punishable by fine up to $10,000 or up to 10 years in prison, or both.