Also, it would have been directly convertible at the U.S. Treasury to 172.4 ounces of silver at the 1913 $0.58/ounce rate. People should let that sink in for a minute….
This means not only that the dollar acted as a warehouse certificate (Silver/Gold Certificate) that REQUIRED the U.S. Treasury to exchange on demand for the ACTUAL metal, but also that it significantly limited the government’s ability to PRINT dollars. This acted as an inflation control and encouraged better government.
By the way, at today’s inflated rate, those 172.4 ounces of silver are worth $3397.85 federal reserve notes. Now, let that REALLY sink in:
Then – ~1.75 oz silver = $1.00
Now – ~.05 oz silver = $1.00
A loss of tangible value of 35 times or 97% of its pre-federal reserve value.
If you haven’t noticed, this is directly representative of those “higher prices” we presently experience. But, the “prices” aren’t higher; the intrinsic value of the item priced isn’t greater. The difference is due to the demolished purchasing power of each fiat “dollar.” And, this is the direct result of the Federal Reserve Act and Federal Reserve Bank.
Have you had enough yet?