This Day in HIstory: Jun 05

1933

FDR takes United States off gold standard

On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.

Soon after taking office in March 1933, Roosevelt declared a nationwide bank moratorium in order to prevent a run on the banks by consumers lacking confidence in the economy. He also forbade banks to pay out gold or to export it. According to Keynesian economic theory, one of the best ways to fight off an economic downturn is to inflate the money supply. And increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.

On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.

The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.

https:// www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard

This Day in HIstory: Jun 05

1968

Robert F. Kennedy shot

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At 12:50 a.m. PDT, Senator Robert F. Kennedy, a presidential candidate, is shot three times in a hail of gunfire in the Ambassador Hotel in Los Angeles. Five others were wounded. The senator had just completed a speech celebrating his victory in the California presidential primary. The shooter, Palestinian Sirhan Sirhan, had a smoking .22 revolver wrested from his grip and was promptly arrested. Kennedy, critically wounded, was rushed to the hospital, where he fought for his life for the next 24 hours. On the morning of June 6, he died. He was 42 years old. On June 8, Kennedy was buried at Arlington National Cemetery, also the final resting place of his assassinated older brother, President John F. Kennedy.

Robert Kennedy, born in Brookline, Massachusetts, in 1925, interrupted his studies at Harvard University to serve in the U.S. Navy during World War II. He was legal counsel for various Senate subcommittees during the 1950s and in 1960 served as the manager of his brother’s successful presidential campaign. Appointed attorney general by President Kennedy, he proved a vigorous member of the cabinet, zealously prosecuting cases relating to civil rights while closely advising the president on domestic and foreign issues. After Kennedy’s assassination in 1963, he joined President Lyndon B. Johnson’s administration but resigned in 1964 to run successfully in New York for a Senate seat. Known in Congress as an advocate of social reform and defender of the rights of minorities, he also voiced criticism of the war in Vietnam.

In 1968, he was urged by many of his supporters to run for president as an anti-war and socially progressive Democratic. Hesitant until he saw positive primary returns for fellow anti-war candidate Eugene McCarthy, he announced his candidacy for the Democratic presidential nomination on March 16, 1968. Fifteen days later, President Johnson announced that he would not seek reelection, and Vice President Hubert Humphrey became the key Democratic hopeful, with McCarthy and Kennedy trailing closely behind. Kennedy conducted an energetic campaign and on June 4, 1968, won a major victory in the California primary. He had won five out of six primaries and seemed a shoo-in for the Democratic nomination and, some thought, the presidency.

Shortly after midnight, he gave a victory speech to his supporters in the Ambassador Hotel and then, while making his way to a press conference by a side exit, was fatally wounded by Palestinian Sirhan Sirhan. Sirhan was arrested at the scene and indicted for first-degree murder. A mentally unstable drifter, his motives in killing Kennedy have never been clear. Some journalists have alleged that Sirhan was part of a larger assassination conspiracy, supposedly brought on by Kennedy’s promise to end the Vietnam War if elected president. These conspiracists cite forensic evidence and witness testimony that they say proves the existence of additional shooters who were not detained.

In 1969, Sirhan Sirhan was convicted and sentenced to die. In 1972, his death sentence was commuted to life imprisonment when the California Supreme Court abolished the death penalty. Since 1983, he has repeatedly been denied parole by prison officials who consider him a serious threat to public safety.

https:// www.history.com/this-day-in-history/robert-f-kennedy-shot

This Day in HIstory: Jun 05

2004

Ronald Reagan dies

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On this day in 2004, Ronald Wilson Reagan, the 40th president of the United States, dies, after a long struggle with Alzheimer’s disease. Reagan, who was also a well-known actor and served as governor of California, was a popular president known for restoring American confidence after the problems of the 1970s and helping to defeat communism.

Born on February 6, 1911, Reagan, who was nicknamed Dutch as a youngster, was born and raised in several small towns in Illinois. Despite a disadvantaged upbringing—his father abused alcohol and had trouble holding jobs—Reagan was a popular and outgoing student. He served as president of his high school’s student council and stood out at football, basketball, and track, as well as acting in several plays. During the summer, he worked as a lifeguard, reportedly saving 77 people over six years.

After high school, Reagan enrolled at Eureka College, a small, Christian, liberal-arts school in Eureka, Illinois, from which he received a scholarship. There, he continued to show athletic prowess, playing football and swimming, as well as honing his skills in his two future pursuits: acting and politics. Reagan—then a Democrat—served as Eureka’s student-body president and acted in the college’s theater productions.

In 1932, Reagan graduated from Eureka with a degree in sociology and economics and found a job as a radio sports announcer. He worked in radio for five years, before going for a screen test in Los Angeles while in California to cover the Chicago Cubs’ spring-training camp. Warner Brothers offered the future president a seven-year contract, but asked him to use his given name Ronald instead of Dutch in the movies.

Although he never became an A-list star, Reagan spent 20 years in Hollywood and appeared in more than 50 films and several television programs. His oft-used nickname as president, The Gipper, came from his turn playing Notre Dame football star George The Gipper Gipp in the 1940 film Knute Rockne: All American. In 1940, Reagan married actress Jane Wyman. The couple had two children: Maureen, in 1941, and Michael, whom they adopted in 1945. Reagan and Wyman divorced in 1949.

Although Reagan did not serve combat duty in World War II because of his poor eyesight, he began active duty in 1942 and made training films for the military until his discharge in 1945. Politically, it was during the 1940s that Reagan gradually became more conservative and also became involved in the country’s burgeoning anti-communist movement. In 1947, he testified to the controversial House Un-American Activities Committee (HUAC), naming elements in Hollywood that he felt were allied with communist causes. Later that year, he was elected president of the Screen Actors Guild (SAG), a position he held from 1947 to 1952 and again from 1959 to 1960.

https:// www.history.com/this-day-in-history/ronald-reagan-dies