FDR's Gold Dilemma

President Roosevelt not only faced a banking crisis but also faced a growing dilemma concerning the value of the US Dollar. With the pressing matter of a currency getting considerably worth less, President Roosevelt signed Executive Order 6102. This order made citizens turn over gold to Federal Reserve banks and then, in turn, “receive an equivalent amount any form of coin and currency coined under the laws of the United States”(Roosevelt Executive Order 6102).
A removal of the Gold Standard in the United States was extremely important because “with less and less gold, a United States on the gold standard would not have enough backing for credit to industry and agriculture to enable it to restart its economy”(Rose “How FDR Reversed the 1933 Banking Crisis”). Also, this allowed the United States to not be tied down to gold and be able to add or subtract money from the economy as needed more easily.





Source:
 Executive Order 6102