This is the third of four milestones for your final project. This should include the following
1. What are the rules of the organization that influenced and impacted the decision, policy, program
2. How did the those impacted by this decision have input into the decision?
3. Which groups or people are mostly impacted by these decisions or policies?
4. What are some of the unintended consequences of these decisions or policies?
Remember to include at least 2 references in APA format as well as intext citations.
Submit your own responses below:
Regent University
Econ 290
Milestone 3: FDR's Executive Order 6102
Serena Prince
Regent University
Prof. Jeff Bajah
October 2, 2022
Goals for this Milestone:
What are the rules of the organization that influenced and impacted the decision, policy, program
Section One & Two specifically demanded that every U.S. person, including “individual, partnership, association or corporation” must relinquish all their gold coins, gold bullion and gold certificates to the Federal Reserve by April 28th, 1933 (Roosevelt 1933, par. 1). Section Two provided certain exceptions to those whose trade required the use of gold commercially, such as miners and gold refiners, and artists. Americans were only able to possess up to $100 in gold or to those whose gold was earmarked for foreign bank, or licensed exporters of gold (Roosevelt 1933, par. 3). Section Four explains that once the gold was received by the Federal Reserve, the bank would give the person an equivalent amount in paper currency or U.S. minted coins. Other banks were required to surrender their gold to the Federal Reserve as well. The Secretary of the Treasury was given authority to enact any other regulations and administrative procedures in order to fulfill this order. Section Nine warns that violators could be charged with a fine of up to $10,000 or 10 years in prison (Roosevelt, 1933, par.14; The New York Times, 1933).
How did those impacted by this decision have input into the decision?
The general American population did not have a say in this decision. Those who opposed the order tried fighting it in court, but all rulings in the Gold Clause Cases favored the federal government (MacLean, 1937).
Which groups or people are most impacted by these decisions or policies?
Those with the greatest gold ownership would be the ones with the most impact, especially corporations and wealthy people who were forced to forfeit their gold in exchange for paper currency.
What are some of the unintended consequences of these decisions or policies?
This expanded the executive powers of the president, using this national crisis to justify such a nationwide financial emergency act (CRS Report 1996 p.2). It completely restructured the U.S. economy and how it holds assets and converts assets.
Concept Questions:
1. Is there a voting aspect to this policy? If not directly maybe indirectly (maybe there was not a vote about the actual policy but the decision makers were voted on)
Given the nature of an executive order, this bill was not voted upon. FDR used his executive power to enforce this act. It was later when Congress voted to support and codified his executive order in The Gold Reserve Act of 1934 (Congress 1934).
2. What were the elections like? Are the decision makers truly representative of the group (even if there was not an election)
There was no direct election, it was implemented quickly as an emergency order. FDR made a unilateral act. The decision makers were not truly representing the group of U.S. citizens who owned gold but rather the interests of the federal government, federal reserve, and the banking system.The judicial system favored the order as well (MacLean, 1937).
3. What are the compromises and being made? Is there resistance to the policy? How stable is the policy? Could it be changed with just a few votes?
The only compromises or exceptions were to those who use gold for artistic purposes or who are miners or refiners of gold (Roosevelt 1933, par. 2). Yes, there was much resistance to this policy, especially from corporations. Multiple lawsuits were filed, but most decisions favored the government (MacLean, 1937).). Since the executive, legislative, and judicial branch were for the most part in unity with the decision, it was able to be enforced effectively. It was not until 1974 when gold ownership was made legal again under President Gerald Ford by an Act of Congress in Pub. L. 93-373 (1974).
4. Do some involved seem to have disproportionate influence on the outcome? If so, who and why?
Yes, the entire federal government and the federal reserve dominated this decision, even the law enforcement had to enact this decision that effected all U.S. citizens without the consent of the people. This was done in the name of stabilizing the economy which also effected foreign investments. Since Congress has the power to coin money, they also used that power to stop the production of gold coins
References
Congress, U. S. (1934, January 30). Gold Reserve Act of 1934. FRASER. Retrieved September 4, 2022,
CRS Report. (1996). Presidential Emergency Powers: The So-Called "War Powers Act of 1933". Retrieved September 16, 2022, from https://www.everycrsreport.com/files/19960820_95753_9f0fe5a5990563d678b0865693e5da564e1d24.pdf
MacLean, Angus.(1937). “Outline of the Gold Clause Cases - University of North Carolina at ...” UNC School of Law.https://scholarship.law.unc.edu/cgi/viewcontent.cgi?httpsredir=1&article=1412&context=nclr.
Public Law 93-374-Aug. 14, 1974. Congress.gov. (1974). Retrieved September 4, 2022, from https://www.govinfo.gov/content/pkg/STATUTE-88/pdf/STATUTE-88-Pg445.pdf
Roosevelt, F. D. (1933, April 5). Executive order 6102-requiring gold coin, gold bullion and gold certificates to be delivered to the Government. Executive Order 6102-Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government | The American Presidency Project. Retrieved September 4, 2022, from https://www.presidency.ucsb.edu/documents/executive-order-6102-requiring-gold-coin-gold-bullion-and-gold-certificates-be-delivered