Executive Order 6102 was a presidential directive issued by U.S. President Franklin D. Roosevelt on April 5, 1933, during [[The Great Depression]]. The order aimed to address the ongoing banking crisis and stabilize the U.S. monetary system by prohibiting the private ownership of gold. ## Key provisions of Executive Order 6102 1. **Confiscation of gold**: The order mandated that all individuals, businesses, and banks in the United States turn in their gold coins, gold bullion, and gold certificates to the [[Federal Reserve]] by May 1, 1933. Exceptions were made for gold used in industry, dentistry, and artistic pursuits, as well as for collector's coins and certain gold certificates. 2. **Criminal penalties**: Noncompliance with the order was punishable by a fine of up to $10,000 (equivalent to approximately $200,000 today), imprisonment for up to ten years, or both. 3. **Exchange rate**: U.S. citizens were compensated for their surrendered gold at a fixed rate of $20.67 per troy ounce, the then-official value of gold. 4. **Gold ownership restrictions**: Following the confiscation, private ownership of gold was heavily restricted, and gold could only be held in limited amounts for specific purposes. ## Solving the Great Depression Executive Order 6102 was part of a larger strategy to combat the Great Depression, as the government sought to increase the [[money supply]] and devalue the dollar to promote economic growth. In January 1934, the Gold Reserve Act was passed, revaluing gold at $35 per ounce and effectively devaluing the U.S. dollar by nearly 70%. This move was intended to stimulate [[inflation]], increase exports, and reduce unemployment. The gold confiscated under Executive Order 6102 was held by the U.S. Treasury and stored primarily at the United States Bullion Depository in Fort Knox, Kentucky. The U.S. government's large gold reserves helped to establish the country as a global economic powerhouse in the years following the Great Depression. ## Fiat currency The restrictions on private gold ownership were gradually eased in the following decades. In 1964, the prohibition on owning gold certificates was lifted, and in 1974, President Gerald Ford signed a bill that once again allowed U.S. citizens to own gold bullion and gold coins. The end of the gold ownership ban marked a shift in U.S. monetary policy, as the country moved away from the [[gold standard]] toward a system of [[fiat currency]]. In summary, Executive Order 6102 was a significant measure taken by the U.S. government during the Great Depression to stabilize the monetary system and boost the economy. It involved the confiscation of privately held gold, criminal penalties for noncompliance, and a fixed exchange rate for the surrendered gold. Although controversial, this order played a role in helping the United States recover from the economic crisis and set the stage for the nation's eventual shift to a fiat currency system.