pull down to refresh
0 sats \ 2 replies \ @Rothbardian_fanatic 17 Dec \ on: Golden Flashback: How to Change "Ownership" Without Taking Custody (JEH 2019) econ
The way the standard ran before 1933 was by coins. You had gold and silver coins in your hand. The paper currency was 100% redeemable in either gold or silver. Our heroic lefty/Marxist/socialist/communist/murderer president at the time, FDR, changed it to the cra-cra system that followed. He really took us for a ride, didn’t he.
Yeah, I mean no love for FDR of course.
Your first two sentences, tho, aren't quite right: Notes dominate from mid-19th to post-1933 time, and they were always partially backed by reserves.
Even the smallest gold coins were weeeell above most people's everyday expenses -- tokens, copper coins, or the occasional silver more common. (But, bimetallism aside, they are also roughly speaking fractional/non-money)
reply
Well, I did note that redeemable notes were used. The most used coins used to be the half dollar and lesser coins, which were held in the hand. Silver dollars were still given in pay, at least in Colorado, until the mid-50s, so payday was heavy in the pocket. The quarter eagles and $2 gold coins were available when the rate was
20 ounces silver/one ounce gold.
reply