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According to this site:

On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned (and thus ILLEGALLY placed in control of our currency, 100 years ago) Federal Reserve Bank would soon be out of business.

So did JFK sign EO 11110 on June 4, 1963 and did that order do as this site claims?

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    Please note that the site in question infers(or maybe even claims) that this is the reason for JFK being murdered. That is not a claim I am attempting to challenge or even address.
    – Chad
    Commented Jun 18, 2014 at 13:39
  • So, did it put the Fed out of business? Why not?
    – adam.r
    Commented Jun 18, 2014 at 16:46
  • @adam.r No, it did not put the Fed out of business, but actually strengthened rather than weakened it. Commented Nov 23, 2015 at 13:05

2 Answers 2

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Yes, he signed it on June 4, 1963. The text of the Executive Order can be found online:

SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended --

(a) By adding at the end of paragraph 1 thereof the following subparagraph (j):

"(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption," and

(b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof.

SEC. 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

However, I don't see anything in the text that would strip the Federal reserve of any power to loan money. Specifically, it only delegated existing Presidential power to the Treasury Department.

Further, Kennedy was vocal in his desire to stop using silver as a monetary metal, with a plan to replace silver certificates with Federal Reserve notes. That would seem to be at odds with the claim that he was trying to put the Fed out of business.

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    It might be useful context to summarize the sense of Order 10289 paragraph 1. Eg is it listing powers that are being waived? Commented Jun 19, 2014 at 2:19
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    @NateEldredge: Paragraph 1 consists of the "The Secretary of the Treasury is hereby designated and empowered to perform the following-described functions of the President without the approval, ratification, or other action of the President:" followed by a lettered list of specific delegations. I cannot find a convient copy of the original (unammended order online), so I have no link, but cite the order itself as evidence of its contents. Commented Jun 19, 2014 at 16:06
  • I don't see a mention of the Federal Reserve, the text seems to only talk about the Treasury.
    – Nimloth
    Commented Jul 10 at 12:05
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Executive Order 11110 absolutely did not eliminate any of the powers of the federal reserve. In fact Kennedy was doing the exact opposite and giving the Federal Reserve more power. In a 1963 Economic Report, Kennedy wrote to Congress that because silver served no monetary function (in his opinion) they should replace all existing silver certificates with Federal Reserve Notes. (see Economic Report of the President, p. XXIII. January 21, 1963. House document No. 28, 88th Congress, 1st Session. U.S. Govt. Printing Office.)

Congress obliged by passing a law, HR 5389, in April 1963 and Kennedy signed that bill into law in June 1963. (see: Silver Legislation, April 3, 1963, House of Representatives Report No. 183, 88th Congress, 1st Session.)

The same day Kennedy signed that bill, he signed Executive Order 11110. Congress' new silver certificate legislation repealed an older law (The Silver Purchase Act of 1934) that both authorized and required the Secretary of the Treasury to buy silver and issue silver certificates.

Because the Treasury Secretary no longer had the authorization to issue silver certificates, Kennedy's Executive Order was a stopgap that authorized the Treasury Secretary to continue to issue silver certificates until the new law to replace silver certificates with Federal Reserve Notes went fully into legal effect in March 1964. (see: Text of Executive Order 11110

Kennedy ended the backing of our currency with silver and ordered all such silver certificates to be replaced with the Federal Reserve's own fiat currency (the Federal Reserve Note). By ending the period of time where Federal Reserve Notes were just one of several forms of legal tender and replacing that with the system we have today in which Federal Reserve Notes are the only form of legal tender, Kennedy did the opposite of ending the fed by giving them a monopoly on the issuance of legal tender.

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  • Welcome to the site! Very nice answer. Can you speak to the effect, or lack thereof, of EO 11110, on the ability of the Fed to loan money to the US government, as in the claim? Commented Jul 10 at 12:59

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