Prior to the election of America’s longest serving socialist president, our money was backed by gold. Anyone holding our paper currency could demand to exchange it for gold at a set price. In 1913, the gold standard was officially made part of the Federal Reserve and the price of gold was fixed at $20.67 per ounce. The same law mandated that the Federal Reserve kept enough gold on hand to equal 40% of the currency issued at the time.
–SNIP– On this day, June 5, 1933, Roosevelt, with the aid of Congress, finalized his plan to take America completely off the gold standard. No longer was our currency backed by gold. Instead, our currency was basically valued at the value placed on it by the Federal Reserve, which also played an important role in international banking and currency values. All gold coins and bullion was required to be turned over to the Federal Reserve. No private ownership of gold coins or bullion was allowed in the US.
Read more at Constitution.com