>The third step was a decree by the President requiring all persons and corporations whatever to **divest themselves of gold and hand it over to the government.** The law authorizing him to do that had fixed the **penalty of non-compliance at a fine equal to twice the value of the gold**. The executive decree added the **penalty of imprisonment**. In view of further intentions not yet disclosed it was imperative for the **government to get possession of all the gold**. With a lot of gold in private hands its control of money, banking, and credit could have been seriously challenged. All that the government asked for at first was possession of the gold, as if it were a trust. For their gold as they gave it up *people received paper money, but this paper money was still gold standard money—that is to say, it had always been exchangeable for gold dollar for dollar,* and people supposed that it would be so again, when the crisis passed. Not a word had yet been said about devaluing the dollar or repudiating the gold standard. The idea held out was that as people surrendered their gold they were supporting the nation's credit. This decree calling in the gold was put forth on April 5. There was then an awkward interlude. The Treasury was empty. It had to sell some bonds. If people knew what was going to happen they might hesitate to buy new Treasury bonds. Knowing that it was going to devalue the dollar, knowing that it was going to repudiate the gold redemption clause in its bonds, even while it was writing the law of repudiation, the government nevertheless issued and sold to the people bonds engraved as usual, that is, with the promise of the United States Government to pay the interest and redeem the principal "in United States gold coin of the present standard of value." I suppose those who argued that the government was going to end the gold standard at the time were conspiracy theorists.