I recently came across a transcript of president LBJs comments back in 1965 when he signed the law that removed silver from our coins. It is somewhat interesting. https://www.presidency.ucsb.edu/ws/?pid=27108 The most notable sections are below: "Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins. "If we had not done so, we would have risked chronic coin shortages in the very near future. .... "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. "Since the life of a silver coin is about 25 years, we expect our traditional silver coins to be with us in large numbers for a long, long time. "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." (end quote) Ironic - LBJ saw the shortage 45 years ago, yet he said there is no value in holding silver, which was about $1.50/ounce at the time. Thought thus might be helpful and/or interesting.
I wouldn't read too much into LBJ's words. Although it could be contended that LBJ foresaw the shortage in silver, I think it's more a case of talking his book away from any serious effort to use precious metals as REAL currency. About the only thing I really believe is that the Treasury would interfere in the markets to keep prices suppressed.
LBJ came into office after JFK's assassination, and amongst many theories as to why JFK was taken down is Executive Order #11110 that effectively would have allowed the US Treasury to introduce real silver currency, to supplant the paper reserve notes from the Federal Reserve.
JFK attempted to move America into honest money back with real precious metals - in this case silver. Seen in this light, every word spoken by LBJ is the opposite of what JFK was trying to do - and can thus be seen as little more than talking down the wisdom of silver by expressing the folly of such actions.
Years later as the Hunt brothers moved heavily into silver apparently one of their ambitions (along with John Connally) was to move Texas into its own precious metals backed currency - freed from the Federal Reserve.
This ambition paralleled what JFK attempted and this too was crushed.
Thanks John, I always appreciate your posts.
I probably should have thrown a sardonic or sarcastic emoticon on there - I don't honestly think LBJ was being sincere about the silver shortage, I think it was just political BS to steer the country away from real money, but the weird thing is that there really is a shortage! Just thought it was interesting and that others might find it so too.
LBJ knew EXACTLY what was going to happen with our silver coinage and tried to steer the sheeple away from hoarding. As I remember by 1968 you had to really search around to find any silver coins still in circulation. In 1971 I can remember going to a local coin show and dealers were selling junk silver coins for 3X face. Just contemplate that for a moment using LBJ mintage amounts available. Do you think LBJ knew the Hunt brother?
Do you think LBJ knew the Hunt brothers?
Do you think LBJ knew the Hunt brothers?
LBJ definitely knew H.L. Hunt (Big Daddy Hunt) and the other big TX oil barons...their wealth steamrolled him into TX politics and later the national stage...where LBJ promptly turned his back on their conservative views and became the liberal Democrat we know now from history (Great Society, etc.) That's not how he started out though.
Read The Big Rich to get a fuller picture, lots of suitcases of cash delivered in the dark of night to pass oil-friendly legislation and buy votes. Hunt Bros. silver story (like most things) isn't only the simple explanation you can read on Wikipedia :)
It's actually the love of money is the root of all evil...