The Gold Reserve Act of 1934
By the terms of the Gold Reserve Act of 1934, signed by the President on January 30, an upper limit of 60 per cent for revaluation was added to the previously existing lower limit of 50 per cent for devaluation of the dollar and within these limits the President was given authority, for a period of three years,1 to vary the gold content of the monetary unit as circumstances warrant. President Roosevelt was expected, within 48 hours of signing the act, to take the first step in devaluation by ordering an initial reduction of 40 per cent in the dollar's gold content. Since 1834 the American dollar has contained 23.22 grains of pure gold. A reduction by 40 per ...