🏛️ The gold standard in the U.S.
For much of the 19th century and early 20th century, the U.S. adopted the gold standard, which meant that:
- The value of the dollar was backed by gold.
- People could exchange bills for gold bars or coins at authorized banks.
- The government maintained gold reserves to ensure the stability of the dollar.
📜 Key moments
- 1879: The gold standard is officially established. The dollar could be converted to gold at a fixed rate.
- 1933: Under the presidency of Franklin D. Roosevelt, private ownership of monetary gold is prohibited. Citizens had to turn in their bars and coins to the government in exchange for dollars.
- 1971: Richard Nixon ends the international gold standard. Since then, the dollar is no longer backed by gold, but by trust in the U.S. economy.
🪙 Were bars used for purchasing?
Not exactly like bills. The bars were more of a store of value. What was used were gold coins, like the famous $20 Double Eagles, which circulated as real money.
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