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President Lyndon B. Johnson Warns: 'Don't Think About Hoarding Silver Coins'

Lyndon Johnson's remarks at the signing of the Coinage Act, where he announces the first changes to our coinage (i.e. from silver to base metals) since the 18th century, and warns we have no idea of ever returning to the 18th century, and warns people not to hoard the silver coins still in circulation at that time:

Some have asked whether our silver coins will disappear. The answer is very definitely-no.

Our present silver coins won't disappear and they won't even become rarities. We estimate that there are now 12 billion--I repeat, more than 12 billion silver dimes and quarters and half dollars that are now outstanding. We will make another billion before we halt production. And they will be used side-by-side with our new coins...

If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content.

The new coins are not going to have a scarcity value either. The mint is geared to get into production quickly and to do it on a massive scale. We expect to produce not less than 3 1/2 billions of the new coins in the next year, and, if necessary, twice that amount in the following 12 months.

Read the whole thing:

http://www.presidency.ucsb.edu/ws/?pid=27108




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Johnson was wrong-they Produced Massive Amts of Silver Coins

Johnson was wrong-they Produced Massive Amts of Silver Coins
in 1964, spilling over the 1964 silver production into the year 1965, but the silver coins were hoarded out of circulation fast.
http://www.dailypaul.com/319152/in-1964-the-us-mint-used-550...

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The same could be said about nickels and pennies today

Nickel in it's current form will likely not be around for long, even zinc penny getting close. Heck, eventually all metal coins will disappear. I pay in cash and save all change!

As a kid I remember my father

As a kid I remember my father would bring us sacks and sacks of coins to go through and separate the "real" money from the fake stuff. Those coins have sure come in handy over the years. I have a wise father.

Pass it on. My dad was only

Pass it on. My dad was only 17 when that passed and for some reason he never caught the silver bug nor separated his cash. I find it strange my grandfather did not teach him. Unless my grandfather stashed away a ton of coins somewhere, which is possible, but my grandma would know. Only time will tell.

I teach my son to look at every coin and even FRN's for serial numbers. I slip in silver mercs and rosies every once in a while so he gets the eye. He knows how to distinguish silver and that people will pay good money for an FRN with a weird serial number. I'm starting to teach him about numismatics as well with a major emphasis on silver. It's not quite an investment strategy but it's a good hobby for a kid.

I caught the silver bug as a kid because my uncle was an economic forecaster back in the early 80's (but he lost his ass on silver somewhere along the line and discontinued his newsletters.)

I think I was the only family member who actually read his newsletters (he sent them out to family for free.)

It's great fodder when going out with other families and my son asks specifically for an FRN. He does it on purpose. Then I ask what denomination. My kid knows more about economics than his friends parents. The parents ask "What's an FRN?" Then I pull out a dollar bill and let them figure it out.

Never talk down to anyone about cash. Just answer questions and be polite and courteous. I find any excuse to bring it up without shoving it in people's faces. The whole FRN thing is amazing. "Dad, can I have an FRN for playing games while you eat pizza." That's priceless. Although it does cost one FRN. hehe :)

This is such a cool idea.

This is such a cool idea. Where can I go to get a load of info on this stuff?

LBJ

LBJ is responsible for the death of thousands of young Americans. May is soul burn in hell for internally.

Joined the Liberty Movement in Anchorage, Alaska, 1977. Ron Paul supporter since 1983.
In Liberty from the Pacific Northwest.

Not just thousands...

My Dad fought in Vietnam and was an inch away from being killed several times. He was even blown up by a grenade that went off 5 feet from him. Somehow he survived. He went on to get married and had 10 kids. Those kids now have 24 kids and it will keep on going forever. Those men that were killed have an infinitely unfathomably death toll when you count their lives and the children they never had. It's extremely sad when these devil inspired power mongers get into our government at the highest levels... Hope we can change this trend really soon.

metalhed19's picture

Also responsible for hugely

Also responsible for hugely unsustainable programs (Medicare/Medicaid). Debased the currency, huge warmonger, enabled creeping socialism. The 4th worst Pres in my opinion. Behind Wilson, Bush Jr. and FDR.

*Wisconsin Constitution* Article I, Section 25 "The people have the right to keep and bear arms for security,defense,hunting,recreation or any other law-abiding purpose"

Irresponsible... Grotesque... hugely so.

Don't think about hording. Give our Treasury away. Free health. Free money. Great society. They'll be Hell to pay. - LBJ

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

He was right and wrong..

He was wrong to think that paper money would never be accepted by Americans and thinking that people would stick to gold and silver as a medium of exchange. If gold and silver continued to be the currency, the old coins would possibly still be around and they would not have been melted to be used for other purposes.

He was right to expect that silver could not be hoarded because no one Man or group had sufficient wealth to do so at the time.

I see nothing wrong about his expectations if I try to see the world thru his eyes, placing myself at that point in time.

www.youtube.com/truefictions

I try to change people every day. Do You?

"I see nothing wrong" - TruefFctions ~ See no evil.

Here are some nice appointments he kept with history. See no evil here.
LBJ Library

Please look elsewhere for what vile things he did.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Your comment is off topic..

The original post is mostly about silver hoarding.

Do you understand what I meant with my previous reply now?

www.youtube.com/truefictions

I try to change people every day. Do You?

My reply was directly about "I see nothing wrong"

Sorry you feel misunderstood. LBJ's comments were crafted to get more acceptance of his debasing the US coinage. Something very wrong.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

You know we could still be on a gold or silver standard even

with cheap alloy coins.

It was never intended that the silver in a quarter equals 25 cents in value or that a dime had to have ten cents worth of silver.

Just as a paper dollar - redeamable for one dollar in silver on demand, isn't actually made of silver, small coins don't have to be worth thier actual value in any precious metal to be on a precious metal standard either.

A metal standard required there to be sufficient quantity of the metal there to back up all of the money circulating so that it COULD be redeamed.

That said, it WOULD be more efficient and less expensive to make a coin out if a cheap alloy as opposed to making them out of silver.

So long as the actual silver represented by those coins was available for redemption.

"Coin of the Realm" ~ Never intended to be worth its weight?

Makes a man wonder why a silver dollar is minted with a denomination of $1.

Why is 50¢ denominated as 50¢?
Why is 25¢ denominated as 25¢?
Why is 10¢ denominated as 10¢?
Why is 5¢ denominated as 5¢?

It is historically accurate to relate the face value of a denominated coin is nearly always an underweight lie. Must we believe in the "Coin of the Realm?"

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

That System Failed

It is your line of thinking that got us where we are. You just cannot trust the government or bankers not to cheat and float more paper than the metals they have in physical storage would allow for.

-----------------------------------------------
"The more laws we make, the more snares we lay to entrap ourselves."
- Sir Francis Bacon, Nov. 1, 1601

So no paper currency? No electronic money? No credit cards?

No internet commerce?

Only coins made up of metal equal to the value of the money in pure barter form can be used?

Welcome back to the stone age.

Of Course Not

The whole reason for using paper initially was because it was safer and easier than carting around your gold. You put your gold in the bank and wrote checks, or the bank issued 'notes' you could trade and anyone could redeem for the metal. That's how paper 'money' got started. We will all still be free to do this. But this in no way justifies allowing the government to debase coins, which is the idea I was criticizing above. We have to find ways to keep governments honest. In my view, as I've written elswhere on this site before, the best way to do that is to repeal the legal tender law. You should not be forced to trade your hard labor and goods for their counterfeit paper.

-----------------------------------------------
"The more laws we make, the more snares we lay to entrap ourselves."
- Sir Francis Bacon, Nov. 1, 1601

So why would you accept a paper note from me for a dollar - but

not alloy coins - provided (of course) that there was a dollars worth of gold or silver in the bank to account for each and every alloy coin?

No.

You are stuck on peripheral issues.

The core issue is value.

Barter doesn't occur with items of dissimilar value.

Money is merely a common means of barter.

It is how it develops by the market.

Thus anything used as money has to have the value it trades for.

Otherwise it will eventually collapse in value, be debased further, and fall out of favor as it ruins the economy.

The only way to avoid that is to circulate coins that contain their stated weight and purity.

There is no need for denominations - just weight, purity and content of metal.

The market will handle the rest.

So under your ideal system there will be no paper money?

No digital money so that you can pay for things over the internet? Will we have to hold off on internet commerce until we can figure out a Star Trekian way to teleport gold coins?

I guess checks would be eliminated as well - since a demand note (the other word for a check) only gives the bearer a claim right to an asset in your account.

Just as an alloy coin would represent a claim against a real gold or silver asset in an vault somewhere.

If you can accept a digital tansfer or wiring money (which is the only way that works on the internet) then why couldn't you accept an alloy coin minted ONLY if there was exactly the same amount of gold or silver on hand in a vault to represent that alloy coin?

There's no need for hyperbole.

GoldMoney, E-gold and others already figured out how to handle the technical aspects of internet trade with PMs. (their actual track record on honesty and fraud aside, the "how do we do it" questions were answered)

As for moving from coins to checks to electronic transfers, that's all fine and dandy.

On some level, coinage still circulates. Checks are a convenience and are less so compared to digital transfers. They are slower and more open to fraud. They're still around out of habit and familiarity, but I don't see them lasting in the face of digital transfers.

What I see us ending up with is a system where we have privately minted (or maybe publicly) coins containing PMs and some base metals. (but only in near pure form)

Silver and copper will most likely be used on a daily basis for most purchases. Depending on market conditions, nickel may circulate more than copper. It may end up that some coins are copper, some silver, and some nickel. It will all depend on relative values of the metals and sizes of coins, and current market conditions. Gresham's law will force out some metals and some sized coins at sometimes, and reverse the trend in others.

Gold may be used somewhat, as will palladium and platinum, but more likely, they will be either limited to large purchases, or held in vaults and only transfered electronically.

The difference between electronic transfer and checks on the one hand, and "substitute" currency on the other should be quite obvious.

No one contends that the check or demand note is money. It is a method of TRANSFERRING money, but it is not money.

Tokens and bills however, which are claimed to be "backed" by money, are NOT money, yet they are eventually deemed to be so. (erroneously) People don't think they are transferring ownership or title to money held elsewhere when they use them. They think the coins and notes themselves are actual money.

And we all know the problem with that. Once this takes hold, those who create the substitutes just simply make themselves richer by making more substitutes than real money.

Eventually, this currency will be destroyed by inflation.

There is a huge difference between a mechanism to transfer ownership of property and the actual property itself.

When you devise a means of blurring that line, you invite problems.

And for the record, it's not MY "ideal world." It's how I think the market will naturally play itself out.

The nickle is the only coin still worth its weight in metal.

At roughly 75% copper and 25% (you guessed it) nickle - its worth about 5 cents just for the metal alone - due to high copper prices.

Unbelievable rational

1) We stopped using silver because we risked severe silver shortages.
2) The Treasury has plenty of silver so don't think of hoarding silver coins.

Man, they talked out of both sides of their mouths in 1965 too!

Tricks and treachery are the practice of fools, that don't have brains enough to be honest. - Ben Franklin

Read the legislation

Never mind LBJ's mendacious statement at the time of his signing the bill. Read the actual legislation itself ('Coinage Act of 1965'). Within the legislation itself, they made claim that at that time, increasingly more commerce was being conducted via vending machine sales and that the requirement of silver caused a shortage of circulating coinage and therefore was an impediment to the economy. LBJ and his cohorts in Congress justified their theft through the lie that they were acting for the benefit of the economy. It seems a rather transparent scam in retrospect.

I have asked numerous 'oldtimers' who were of the age of majority in 1965 if at the time this did not seem like a flagrant scam or ripoff, and why on earth there wasn't a public uproar against it. Almost every one of the oldtimers says "It just didn't seem like a big deal at the time." Perhaps only one or two acknowledge that it might have been a problem but that "only the Birchers made any noise about it."

The American Party was

The American Party was commenting on it back then. They claimed it would lead to a devaluation of our currency. They were laughed away because they supported George Wallace, a states' rights proponent. But then many of the American Party were also members of the John Birch Society so I suppose you are right in your statement. "The Johnson Sandwich".

That's right- most people accepted it

as the money was still the same- a dime looked like a dime and a quarter like a quarter. The only difference is we had this new Kennedy half dollar which would not be silver after 1964.

And of course for a few years it didn't mean much.

In retrospect it was against the constitution and theft and purposeful debasing of the money.

Note also the explicit threat to manipulate the silver market by the Treasury if people did hoard the silver coins- the treasury would flood the market with more silver

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Good luck finding a pre-1965 quarter in circulation.

I've been checking this out for 3 years and have not found even ONE.

That goes for every other coin as well - nickels, dimes, pennies.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

Quarters and Dimes are tough. Halves easier.

I just found a 1964 half in a roll I got from the bank last week.

My guess would be at least 1 in 5 rolls has at least one silver half.

About 10 years ago my grandfather got a roll from the bank, and every one of them was a franklin half!! Talk about luck.

I've been looking at my

I've been looking at my change nearly five years. I've found 1 silver dime in this time, just a few months ago. Pennies are easy, anything 81 and before is copper, 82 you have to weigh it to know. 3.5 grams is copper 2.5 is not.