I had read it was abolished in 1971, but I also read it was in 1933. Which one is it? Also, why was it abolished in the first place?
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Executive Order 6102 in 1933 forbade US citizens from having gold worth more than $100 (about 5 ozt). They were supposed to surrender it in exchange for dollars. The main reason was that the treasury needed to increase the money supply to help alleviate the depression and they needed more gold to do that as it was being hoarded due to hard times. It wasn’t until 1974 that it was legal to own and deal in gold in the US again. This was 3 years after the dollar was no longer backed by gold. However, since 1934 the amount of gold per dollar could be charged by presidential declaration, thus instantly changing the value of the dollar (it was used immediately after passing).
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