Executive Order 11110
Encyclopedia
Executive Order 11110 was issued by U.S. President
John F. Kennedy
on June 4, 1963.
This executive order delegated to the Secretary of the Treasury
the president's authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act
.
Treasury Department. Increasing demand of silver as an industrial metal
had led to an increase in the market price of silver above the
United States government's fixed price. This led to a decline in the
government's excess silver reserves by over 80% during 1961. President
Kennedy also called upon Congress to phase out silver certificates in
favor of Federal Reserve notes.
President Kennedy repeated his calls for Congress to act on several occasions, including his 1963 Economic Report, where he wrote:
President Kennedy signed the bill into law on June 4, 1963 and also signed an executive order (11110) authorizing the Secretary Treasury to continue printing silver certificates during the transition
period. The act, which became Public Law 88-36 (77 Stat. 54), repealed the Silver Purchase Act of 1934 and related laws, repealed a tax on silver transfers, and authorized the Federal Reserve to issue one- and two-dollar bills, in addition to the notes they were already issuing. The Silver Purchase Act had authorized and required the Secretary Treasury to buy silver and issue silver certificates. With its repeal, the President needed to delegate to the Treasury Secretary the President's own authority under the Agricultural Adjustment Act.
in 1951, and stated the following:
The order then lists tasks (a) through (h) which the Secretary may now do without instruction from the President. None of the powers assigned to the Treasury in E.O. 10289 relate to money or to monetary policy. Kennedy's E.O. 11110 then instructs that:
and the section added to E.O. 10289 remained on the books until President Ronald Reagan
issued Executive Order 12608
on September 9, 1987 as part of a general clean-up of executive orders. E.O. 12608 specifically revoked the section added by E.O. 11110 which effectively revoked the entire Order. By this time, however, the remaining legislative authority behind E.O. 11110 had been repealed by Congress when was passed in 1982.
In March 1964, Secretary of the Treasury C. Douglas Dillon
halted redemption of silver certificates for silver dollars. In the 1970s, large numbers of the remaining silver dollars in the mint vaults were sold to the collecting public for collector value. All redemption in silver ceased on June 24, 1968.
, such as Jim Marrs
, author of the 1989 book Crossfire: The Plot that Killed Kennedy, who speculate that there is a link between the John F. Kennedy assassination
and E.O. 11110 by arguing that the Federal Reserve Board was involved in the murder to protect its power over the monetary policy of the United States. G. Thomas Woodward, in the
Congressional Research Service
's report for Congress,
Money and the Federal Reserve System: Myth and Reality, writes:
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
John F. Kennedy
John F. Kennedy
John Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963....
on June 4, 1963.
This executive order delegated to the Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
the president's authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act
Agricultural Adjustment Act
The Agricultural Adjustment Act was a United States federal law of the New Deal era which restricted agricultural production by paying farmers subsidies not to plant part of their land and to kill off excess livestock...
.
Background
On November 28, 1961, President Kennedy halted sales of silver by theTreasury Department. Increasing demand of silver as an industrial metal
had led to an increase in the market price of silver above the
United States government's fixed price. This led to a decline in the
government's excess silver reserves by over 80% during 1961. President
Kennedy also called upon Congress to phase out silver certificates in
favor of Federal Reserve notes.
President Kennedy repeated his calls for Congress to act on several occasions, including his 1963 Economic Report, where he wrote:
I again urge a revision in our silver policy to reflect the status of silver as a metal for which there is an expanding industrial demand. Except for its use in coins, silver serves no useful monetary function.
In 1961, at my direction, sales of silver were suspended by the Secretary of the Treasury. As further steps, I recommend repeal of those Acts that oblige the Treasury to support the price of silver; and repeal of the special 50-percent tax on transfers of interest in silver and authorization for the Federal Reserve System to issue notes in denominations of $1, so as to make possible the gradual withdrawal of silver certificates from circulation and the use of the silver thus released for coinage purposes. I urge the Congress to take prompt action on these recommended changes.
Public Law 88-36
The House of Representatives took up the President's request early in 1963, and passed HR 5389 on April 10, 1963, by a vote of 251 to 122. The Senate passed the bill on May 23, by a vote of 68 to 10.President Kennedy signed the bill into law on June 4, 1963 and also signed an executive order (11110) authorizing the Secretary Treasury to continue printing silver certificates during the transition
period. The act, which became Public Law 88-36 (77 Stat. 54), repealed the Silver Purchase Act of 1934 and related laws, repealed a tax on silver transfers, and authorized the Federal Reserve to issue one- and two-dollar bills, in addition to the notes they were already issuing. The Silver Purchase Act had authorized and required the Secretary Treasury to buy silver and issue silver certificates. With its repeal, the President needed to delegate to the Treasury Secretary the President's own authority under the Agricultural Adjustment Act.
Text of Executive Order
President Kennedy's Executive Order (E.O.) 11110 modified the pre-existing Executive Order 10289 issued by U.S. President Harry S. TrumanHarry S. Truman
Harry S. Truman was the 33rd President of the United States . As President Franklin D. Roosevelt's third vice president and the 34th Vice President of the United States , he succeeded to the presidency on April 12, 1945, when President Roosevelt died less than three months after beginning his...
in 1951, and stated the following:
The order then lists tasks (a) through (h) which the Secretary may now do without instruction from the President. None of the powers assigned to the Treasury in E.O. 10289 relate to money or to monetary policy. Kennedy's E.O. 11110 then instructs that:
Revocation
E.O. 11110 was not reversed by President Lyndon B. JohnsonLyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...
and the section added to E.O. 10289 remained on the books until President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
issued Executive Order 12608
Executive Order 12608
Executive Order 12608 was issued by Ronald Reagan on Sep 9, 1987.- History :President Ronald Reagan issued Executive Order 12608 on September 9, 1987 as part of a general clean-up of executive orders. One part of E.O. 12608 specifically revoked the section that were added to E.O. 10289 by E.O....
on September 9, 1987 as part of a general clean-up of executive orders. E.O. 12608 specifically revoked the section added by E.O. 11110 which effectively revoked the entire Order. By this time, however, the remaining legislative authority behind E.O. 11110 had been repealed by Congress when was passed in 1982.
In March 1964, Secretary of the Treasury C. Douglas Dillon
C. Douglas Dillon
Clarence Douglas Dillon was an American diplomat and politician, who served as U.S. Ambassador to France and as the 57th Secretary of the Treasury...
halted redemption of silver certificates for silver dollars. In the 1970s, large numbers of the remaining silver dollars in the mint vaults were sold to the collecting public for collector value. All redemption in silver ceased on June 24, 1968.
Conspiracy theory
Executive Order 11110 is quite infamous among conspiracy theoristsConspiracy theory
A conspiracy theory explains an event as being the result of an alleged plot by a covert group or organization or, more broadly, the idea that important political, social or economic events are the products of secret plots that are largely unknown to the general public.-Usage:The term "conspiracy...
, such as Jim Marrs
Jim Marrs
Jim Marrs is an American former newspaper journalist and New York Times best-selling author of books and articles on a wide range of alleged cover ups and conspiracies. Marrs is a prominent figure in the JFK conspiracy press and his book Crossfire was a source for Oliver Stone's film JFK...
, author of the 1989 book Crossfire: The Plot that Killed Kennedy, who speculate that there is a link between the John F. Kennedy assassination
John F. Kennedy assassination
John Fitzgerald Kennedy, the thirty-fifth President of the United States, was assassinated at 12:30 p.m. Central Standard Time on Friday, November 22, 1963, in Dealey Plaza, Dallas, Texas...
and E.O. 11110 by arguing that the Federal Reserve Board was involved in the murder to protect its power over the monetary policy of the United States. G. Thomas Woodward, in the
Congressional Research Service
Congressional Research Service
The Congressional Research Service , known as "Congress's think tank", is the public policy research arm of the United States Congress. As a legislative branch agency within the Library of Congress, CRS works exclusively and directly for Members of Congress, their Committees and staff on a...
's report for Congress,
Money and the Federal Reserve System: Myth and Reality, writes:
See also
- BimetallismBimetallismIn economics, bimetallism is a monetary standard in which the value of the monetary unit is defined as equivalent both to a certain quantity of gold and to a certain quantity of silver; such a system establishes a fixed rate of exchange between the two metals...
- Executive Order 6102Executive Order 6102Executive Order 6102 is an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States"...
- History of the United States dollarHistory of the United States dollarThe history of the United States dollar covers more than 200 years.-Early history:The history of the dollar in North America pre-dates US independence. It began with the issuance of Early American currency called the colonial script, whereby the issuance of currency was equal to the goods and...
- Silver standardSilver standardThe silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. The silver specie standard was widespread from the fall of the Byzantine Empire until the 19th century...
- United States NoteUnited States NoteA United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for over 100 years, they were issued for longer than any other form of U.S. paper money. They were known popularly as "greenbacks" in their heyday, a...