"Yankee Doodle Coins"
We have served coin collectors
around the world since 1998
Why should YOU own Gold Coins?
The U.S. Constitution (Article I, Section 10) specifies that our money must be minted in gold and silver. "No state shall emit bills of credit, make any thing but gold and silver coin a tender in payment of debts, coin money." The first U.S. Silver Dollars, issued in 1794, were based on Spanish coins of the type seen below, which circulated in the U.S. for many years. For most of our history, U.S. paper currency was made redeemable in gold or silver coins, like the one shown below, to comply (more or less) with the Constitution.
SPAIN, 8 Reales, struck at Mexico City in 1741
Known to our forefathers as "Spanish milled Dollars"
and trusted by them, because it was made of silver.
The founding fathers were well aware how irresponsible governments had operated, since the days of ancient Rome, and did not want to repeat the mistakes of history. They knew that governments which printed paper money without proper backing always overspent, and eventually destroyed their monetary system. Deliberate inflation of paper currency allows governments to expand their power temporarily, but inevitably destroys the value of the life savings of its citizens.
President Thomas Jefferson wrote: "I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale."
From 1789 until 1933, the United States had a stable monetary system, because the Dollar was based on, and backed by, its gold and silver coins. Except for some brief periods, during the 1830's, and later, during the Civil War, the Dollar maintained its value. Inflation was not a factor, and those who saved their money were able to retire, and live on their savings. That was possible because the government was forced to live within its means, minting Silver and Gold coins, and printing Paper Money backed by those coins, such as this Note:
GOLD CERTIFICATE, $20, Series of 1906
At top: "This certifies that there have been deposited in the Treasury"
Below: "Twenty Dollars in gold coin payable to the bearer on demand"
But that is no longer the case. Everything changed in 1913, when the Federal Reserve System was created by the Congress. The Federal Reserve is more than just "independent" of the government, it is a private company, owned by member banks, and controlled by bankers. The paper money it issues (Federal Reserve Notes) is backed by nothing, and omits any promise that it is redeemable for anything. Stop reading for a moment, and get your wallet. Examine one of your Federal Reserve Notes now, and you will see that what you have just read is absolutely true.
Consider what Secretary of the U.S. Treasury, William H. Woodin, wrote in 1933: "The Federal Reserve Act lets us print all [the paper money] we'll need. And it won't frighten the people. It won't look like stage money. It'll be money that looks like real money." Read that again: It'll be money that looks like real money. Translation: it is NOT real money! In retrospect, that has to be one of the most cynical statements ever made.
If 1933 seems familiar, it is because that was the year President Franklin D. Roosevelt stopped the striking of gold coins, and the printing of paper money backed by gold. He made the bankers very happy, by going even further, making it illegal for U.S. citizens even to own gold, and directing them to return gold to the Treasury, but with one important exception: collectors were allowed to keep their gold coins. Here's what one of the first post-1933 Federal Reserve Notes looked like:
FEDERAL RESERVE NOTE, $500, Series of 1934
"This note is legal tender for all debts, public and private, and is redeemable
in lawful money at the United States Treasury or at any Federal Reserve Bank"
lawful money? So what is this Note? UNlawful Money?
The U.S. Mint continued producing silver coins, but by 1965, constant inflation meant that the silver in four Quarters was worth more than a paper Dollar. The mint was forced to stop striking 90% pure silver coins, and the Government reneged on its promise to redeem Silver Certificates for silver. For a few more years, debased (50% pure) silver coins continued to be struck for circulation, but even this was halted in 1970. The following year, the U.S. took the final step, no longer allowing foreign Central Banks to redeem paper Dollars for gold.
Other countries have since followed the U.S. lead, printing fiat paper money as they saw fit, and the situation today is that their currencies, along with U.S. paper Dollars (Federal Reserve Notes) actually have no real value. Only because Dollars are legal tender, accepted by the government, and used by people all over the world is the system kept going. In reality, paper money backed only by the government's power to levy taxes, or to issue Bonds, usually results in printing more paper money later, to maintain the increased debt.
Senator Daniel Webster wrote: "Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money."
The Federal Reserve, authorized by the U.S. Congress, has always printed enough money to finance the deficit spending of the Congress. This process has destroyed 95% of the value of the U.S. Dollar since 1913. The goods and services that one gold-backed dollar would buy back then would cost twenty of today's paper dollars. For a hundred years before that, while the Federal Government was small, the U.S. was on a gold standard, and there was NO inflation at all. The Federal Government is now our bloated Big Daddy, grown to a trillion-dollar monster, at your expense.
For the future, the situation is going to get worse, not better. The United States is burdened by a massive international trade deficit, and has become the largest debtor nation in history. The U.S. National Debt has grown so enormous (almost $12,000,000,000,000 - twelve TRILLION dollars, or $40,000 for each man, woman, and child in the USA), and many times that amount in other obligations. The government has no intention of ever repaying it, and instead simply continues adding to it every year, in constantly inflated dollars, created out of thin air by bankers. This will eventually be a problem for those who are young, and for our children and grandchildren. How much longer can this swindle continue?
Those in other countries who invest in U.S. government Bonds can only lose, as the value of the Dollar continues to drop towards zero, and foreign investors are getting nervous. If they stop buying U.S. government Bonds, the game will be over, and your paper money could become as worthless as the German Marks in 1923, when people had to take a wheelbarrow full of paper money (3,000,000,000 Marks) to the bakery to buy a loaf of bread that cost only one Mark in 1920.
Can a disaster like that happen in the United States? It already has happened, as Southerners found out when their Confederate States currency became worthless, after the North won the Civil War. Even Northerners suffered during the War. As Horatio Nelson Taft, a Washington bureaucrat, wrote in his famous Diary, on July 16, 1864: "I have my baggage all packed up ready to start for the North and home . . . I really do not care much if I never come back here to stay. A place in the Government Departments is not worth much now with the old Salaries which were fixed when gold was paid but are now paid in paper, worth about forty cents on the dollar."
Prior to that, the Continental Congress paid for the Revolutionary War by printing paper money. This paper money (nicknamed "Continentals"), was printed in large amounts, and backed by nothing more than patriotism, producing an inevitable result: spiraling inflation. In 1778, General Washington complained, "It takes a wagon load of money to pay for a wagon load of supplies." An example is shown below.
CONTINENTAL CURRENCY, $30, January 14, 1779
American Paper "Money" issued by Congress, that became worthless,
because the promise to redeem it in Spanish milled Dollars was not kept.
(Note that it says "The United States" on the left of the face side)
After Britain's American colonists declared their independence in 1776, raising and maintaining an army became both a priority and a problem. Since taxation by the King had provoked the Revolution, the Continental Congress was reluctant to levy taxes, and chose to pay for the War by borrowing money. When people failed to lend money by buying bonds, Congress resorted to printing money, in ever-greater amounts. The issuance of paper money backed by nothing more than Revolutionary spirit produced the inevitable result: spiraling inflation. The Thirteen States had accepted payment in these Continental notes, but by 1780, the value of them had depreciated, leaving the States, and many citizens, stuck holding many notes, with little real value. To resolve the problem, Congress passed an Act allowing the States to print their own currency, "guaranteed" by the Continental Congress, payable in Spanish milled Dollars, and bearing interest at the rate of five percent. But there was a catch: the exchange rate was $40 in old Federal notes for $1 in the new State-issued notes.
CURRENCY: Continental Congress
By 1787, the lesson of fiat money had been learned. At the bottom of the second page of a letter written that year to Jabez Bowen, deputy governor of Rhode Island, President George Washington wrote: "Paper money has had the effect in your State that it ever will have, to ruin commerce -- oppress the honest, and open a door to every species of fraud and injustice." Click here to see those words, which remain perfectly true today. Ask anyone you know who has been living on a "fixed income," forced to get by on less and less, while the corrupt politicians who control what used to be "our" government buy bombs and votes, thus destroying the value of your hard-earned life savings. We hope that you are convinced. Our sincere advice to you is BUY GOLD COINS.
CURRENCY: Printed by Paul Revere
Franklin's Libertas Americana Medal
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