Gold Swindle: The Story of Our Dwindling Gold

By Maj. George Racey Jordan

First published in 1959, this book by U.S. Army Air Corps Major George Racey Jordan tells of the loss of U.S. gold reserves under Franklin D. Roosevelt’s administration, when, in an effort to counter the deflation which was paralyzing the economy, Executive Order 6102 declared that all privately held gold of American citizens was to be sold to the U.S. Treasury and the price raised from $20 to $35 per ounce.

In Gold Swindle: The Story of Our Dwindling Gold, Major Jordan discusses in detail the gold threat to national security, analyses the government’s power and sources thereof; describes the impending national crisis; and suggests steps to regain the U.S. citizens’ right to own and hold gold.

• Language: English
• Publisher: Papamoa Press
• Release date: Dec 1, 2018
• ISBN: 9781789124262

Maj. George Racey Jordan

George Racey Jordan (1898-1966) was an American military officer, businessman, lecturer, activist, and author. He first gained nationwide attention in 1949 when he testified to the United States Congress about wartime Lend-Lease deliveries to the Soviet Union, in the process implicating Harry Hopkins and other high officials in the transfer of nuclear and other secrets to the USSR. Although later found to be unsubstantiated, his allegations caused great controversy in the inflamed political climate of the time. Jordan was born in New York City on January 4, 1898, and attended New York University. He enlisted in 1917 and was sent to Kelly Field, Texas, and served as a corporal in the U.S. Army Air Service in France with the 147th Aero Squadron under Captain Eddie Rickenbacker’s 1st Pursuit Group. After the war he worked in private business as a sales and advertising executive. In 1949, he was assistant to the president of the American Pacific Industrial Corporation. In 1942 Jordan returned to the service and was assigned as a Lend-Lease control officer in the U.S. Army Air Corps, with rank of captain. He oversaw deliveries of aircraft and other supplies at the Newark, N.J. airport. With the opening of the ALSIB route via Alaska, he was transferred to Gore Field, Great Falls, Montana, the last air transshipment station within the U.S. In both locations, he interfaced primarily with Colonel Anatoli N. Kotikov of the Red Army. Becoming alarmed at the extraordinary amount of supplies and unusual diplomatic immunity cargo going through Great Falls, Jordan began spying by keeping a detailed diary, which he would later consult as he gave evidence to the FBI and Congressional testimony. Already active as a lecturer, nationwide demand for Jordan increased thereafter, and his speeches were often printed and circulated. He published the book Gold Swindle in 1959. Major Jordan died in Los Angeles, California on May 5, 1966, aged 68.

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Text originally published in 1959 under the same title.

© Papamoa Press 2018, all rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electrical, mechanical or otherwise without the written permission of the copyright holder.

Publisher’s Note

Although in most cases we have retained the Author’s original spelling and grammar to authentically reproduce the work of the Author and the original intent of such material, some additional notes and clarifications have been added for the modern reader’s benefit.

We have also made every effort to include all maps and illustrations of the original edition the limitations of formatting do not allow of including larger maps, we will upload as many of these maps as possible.

GOLD SWINDLE

THE STORY OF OUR DWINDLING GOLD

BY

GEORGE RACEY JORDAN

MAJOR USAF RET.

TABLE OF CONTENTS

Contents

TABLE OF CONTENTS 3

ACKNOWLEDGEMENTS 4

Part 1. The Gold Threat To National Security 5

Chapter 1—The Gold Hemorrhage 5

Chapter 2—The Maze 8

Chapter 3—Clear and Present Danger 11

Part 2. The Puzzle 13

Chapter 4—The Government Takes All Our Gold 13

Chapter 5—The Government Manages our Money-The Welfare Phase 18

Chapter 6—Back to the Source of Power-That Just Grew and Grew 23

Chapter 7—The Government Manages our Money-The International Phase 26

Part 3.—The Impending Crisis 30

Chapter 8—Our Tottering Money Supply 30

Chapter 9—Out of the Horse’s Mouth 33

Chapter 10—Our Tethered Goats 39

Chapter 11—The Sword Over our Heads 45

Part 4.—Return To Monetary Security 52

Chapter 12—The Appeal to the Courts 52

Chapter 13—The Healing Crisis 56

INFORMATION ON UNITS OF GOLD WEIGHTS 58

REQUEST FROM THE PUBLISHER 61

ACKNOWLEDGEMENTS

It is appropriate that I acknowledge the efforts of those who have helped me to assemble the data in this book.

Miss Edna Lonigan, the professional writer, sorted and compiled the material from my many speeches and has helped to polish my final script.

Mr. Paul Bakewell, Jr., author of the recent book Inflation in the United States (Caxton Printers, Ltd., Caldwell, Idaho), has furnished part of the legal background. As a consulting attorney in the Laycock vs Kenney case now before the U.S. Court of Appeals for the Ninth District his opinions were studied.

Mr. Harry Sears, who has spear-headed the mine operators’ fight for the revival of the gold mining industry for many years, rendered valuable assistance.

Finally, I must mention my courageous publisher, Lyle H. Munson, who publishes and distributes books he considers are in the best interests of our country and who joins me in the belief that approval of this Republic, and the free enterprise system, means also that we should fight for it by standing in the path of an insistent design.

George Racey Jordan

September 1959

Part 1. The Gold Threat To National Security

Chapter 1—The Gold Hemorrhage

For over twenty-five years our Government has kept its vast hoard of all the monetary gold in the United States buried under the ground at Fort Knox and in other Treasury depositaries. This gold is carefully guarded day and night by every protection that human strength, ingenuity and electronic systems can afford against theft.

Not one of the 400-ounce gold bars in this hoard can be moved without the authorization of the United States Government, nor without massive security precautions being taken during an actual gold transfer.

The American people, whenever they stop to think about it, derive a deep sense of security from the knowledge that this gold backing, or solid base, for our money is safe on American soil, guarded by every device known to our security experts.

Ever since the time the Treasury demanded and secured all gold privately held by individuals or banks, and Congress made private possession of the precious metal a crime (except in the form of newly mined or placer gold), the American people have regarded this buried treasure as a secure protection behind the paper tokens called dollars.

How could any part of this great treasure be lost, when by law the Government of the United States is pledged to preserve it, and every possible kind of protection is placed around it? It would be unthinkable, you will say, to have such doubts about the gold we were forced to give over to our Government to have and to hold.

Nevertheless the gold, most of which is still held physically within this country, is no longer ours legally. Only a fraction of it belongs to our Government. Irrespective of physical removal, it has been lost to us.

In the past ten years we have lost $8,000,000,000 by gold shipments abroad. We are losing today and there is every expectation that this outward flow will continue.

Why has this happened? Because, even though Americans may not exchange their paper money or checks for gold, claimants outside of the United States can demand gold for their paper money or silver if they wish. These claimants include foreign central banks, the depositors and customers of those banks, Americans living or doing business abroad, and international agencies, such as the United Nations, the International Bank, the International Monetary Fund, and other United Nations’ subsidiaries.

This gold hoard is now in our Government’s keeping, but really only under a warehouse keeping agreement—being stored at taxpayers’ expense even though ear-marked for international ownership.

No American can own gold in this country or abroad except for use in jewelry-making, dental work, and in certain arts and sciences but any foreign trader, any foreign government receiving American dollars as foreign aid, any international agency receiving grants in dollars from the United States, can turn his dollars into gold on demand. It is a privilege not to be an American citizen.

The current drain upon our gold hoard is due to these foreign claims being cashed in by their owners. Furthermore, these foreign claimants have not as yet taken out all the gold they own. At the end of 1960 they still had the right to withdraw more than $20 billion of the total. Their dollar claims rise higher every day. In 1961 none of the gold bars in our Government’s carefully guarded vaults, theoretically belonged to us. And the loss has not been stopped. In fact, it is only beginning. The banks and individuals outside our country who own dollars can legally demand from the central bank in the country of their operations all of this gold. They will get it, because the central banks can in turn demand the gold from our own privately owned Federal Reserve System, unless we declare an embargo.

The American people gave up their gold in trust to the Government. They