On This Date In History

On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.
Soon after taking office in March 1933, President Roosevelt declared a nationwide bank moratorium in order to prevent a run on the banks by consumers lacking confidence in the economy. He also forbade banks to pay out gold or to export it. According to Keynesian economic theory, one of the best ways to fight off an economic downturn is to inflate the money supply. And increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.
On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.
The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.

On June 5, 1967, Israel responds to an ominous build-up of Arab forces along its borders by launching simultaneous attacks against Egypt and Syria. Jordan subsequently entered the fray, but the Arab coalition was no match for Israel’s proficient armed forces. In six days of fighting, Israel occupied the Gaza Strip and the Sinai Peninsula of Egypt, the Golan Heights of Syria, and the West Bank and Arab sector of East Jerusalem, both previously under Jordanian rule. By the time the United Nations cease-fire took effect on June 11, Israel had more than doubled its size. The true fruits of victory came in claiming the Old City of Jerusalem from Jordan. Many wept while bent in prayer at the Western Wall of the Second Temple.
The U.N. Security Council called for a withdrawal from all the occupied regions, but Israel declined, permanently annexing East Jerusalem and setting up military administrations in the occupied territories. Israel let it be known that Gaza, the West Bank, the Golan Heights, and the Sinai would be returned in exchange for Arab recognition of the right of Israel to exist and guarantees against future attack. Arab leaders, stinging from their defeat, met in August to discuss the future of the Middle East. They decided upon a policy of no peace, no negotiations, and no recognition of Israel, and made plans to defend zealously the rights of Palestinian Arabs in the occupied territories.
Egypt, however, would eventually negotiate and make peace with Israel, and in 1982 the Sinai Peninsula was returned to Egypt in exchange for full diplomatic recognition of Israel. Egypt and Jordan later gave up their respective claims to the Gaza Strip and the West Bank to the Palestinians, who opened “land for peace” talks with Israel beginning in the 1990s. A permanent Israeli-Palestinian peace agreement remains elusive.

 

On June 5, 2004, Ronald Wilson Reagan, born on February 6, 1911, the 40th president of the United States, dies, after a long struggle with Alzheimer’s disease. Reagan, who was also a well-known actor and served as governor of California, was a popular president known for restoring American confidence after the problems of the 1970s and helping to defeat communism.
In 1932, Reagan, then a Democrat, graduated from Eureka with a degree in sociology and economics and found a job as a radio sports announcer. He worked in radio for five years, before going for a screen test in Los Angeles while in California to cover the Chicago Cubs’ spring-training camp. Warner Brothers offered the future president a seven-year contract, but asked him to use his given name Ronald instead of Dutch in the movies.
Although he never became an A-list star, Reagan spent 20 years in Hollywood and appeared in more than 50 films and several television programs. In 1940, Reagan married actress Jane Wyman. The couple had two children: Maureen, in 1941, and Michael, whom they adopted in 1945. Reagan and Wyman divorced in 1949.
Although Reagan did not serve combat duty in World War II because of his poor eyesight, he began active duty in 1942 and made training films for the military until his discharge in 1945. Politically, it was during the 1940s that Reagan gradually became more conservative and also became involved in the country’s burgeoning anti-communist movement. In 1947, he testified to the controversial House Un-American Activities Committee (HUAC), naming elements in Hollywood that he felt were allied with communist causes. Later that year, he was elected president of the Screen Actors Guild (SAG), a position he held from 1947 to 1952 and again from 1959 to 1960.
Through the course of his work with SAG, Reagan met Nancy Davis, an actress who looked to Reagan for help when she was incorrectly labeled a communist sympathizer. As he had done for others, Reagan assisted her in clearing her name. The couple also began a lifelong romance and was married in 1952. Their two children, Patricia and Ronald, were born in 1953 and 1959, respectively.
After registering as a Republican in 1962 and campaigning for Barry Goldwater in his failed 1964 presidential campaign, Reagan decided to run for governor of California in 1966. He won handily, despite his lack of experience. His plan for California foreshadowed the one he ultimately brought with him to the national stage: lower taxes, cuts in spending, and an end to big government. Despite the student protests and forced tax hikes that occurred during his first term, he ran again and was easily re-elected in 1970. Just 18 months later, he announced his unsuccessful candidacy for president at the Republican National Convention. In 1975, he left office in California and ran again for the Republican presidential nomination, losing in a close race to Gerald Ford.
In 1980, Reagan ran yet again and won the nomination easily, choosing George H.W. Bush as his running mate. Running on a platform of a return to American values, smaller government, a stronger military, and tax cuts, Reagan appealed to an American public frustrated with inflation and foreign policy problems, like the Iranian hostage crisis. He won, and at age 69, became the oldest man to be elected to the office. A talented and practiced public speaker, Reagan’s personal charm, warm manner, and optimistic message endeared him to many Americans. He was re-elected by a landslide in 1984.
Just 69 days after taking office, Ronald Reagan was shot by John Hinckley after giving a speech at a hotel about one mile from the White House. After surgery to remove the bullet, which had lodged near his heart, he recovered quickly, which added to his image as a strong leader. Throughout his two terms in office, Reagan pursued his trademark economic program, Reaganomics, a supply-side economics theory that involved drastic cuts to both taxes and spending. At the time, and increasingly in the intervening years since his presidency, Reagan drew criticism for ruthlessly slashing social programs while building up a huge deficit with massive military expenditures. He is also criticized for his partiality to business interests, removing many regulations on big business that he felt were impeding growth, as well as authorizing the firing of striking air-traffic controllers in 1981.
It was his campaign to end the Cold War, though, that defined the Reagan presidency for many Americans. His plan was to use an unprecedented military buildup to negotiate arms-reduction treaties from a position of strength. During a visit to Germany, he famously urged then-Soviet Premier Mikhail Gorbachev to tear down that wall. By 1991, the Berlin Wall was torn down and the Soviet Union Reagan had once referred to as an evil empire was no more. While many credit Reagan for this historic turn of events, and it is certain he played a significant role, others point to internal problems in the Soviet Union for its ultimate demise.
Reagan’s foreign policy included military interventions in Lebanon, Grenada and Libya, which had mixed results. He is also known for backing anti-communist rebels in Nicaragua and authorizing a secret CIA military operation there in the early 1980s. This led to the Iran-Contra scandal, in which it was found that illegal arms sales to Iran were used to fund the administration’s support of Nicaragua’s Contra rebels. No evidence was ever found to suggest that Reagan himself or Vice President Bush broke the law. Despite the scandal, George H.W. Bush succeeded Reagan to the presidency in 1988.
Known as the Great Communicator, Reagan left the Oval Office as one of the most popular presidents in history, retiring to his much-loved California ranch, Rancho del Cielo. His announcement in 1994 that he had been diagnosed with Alzheimer’s disease was greeted with great sadness by many across the country. He wrote, in an open letter to the American people, I now begin the journey that will lead me into the sunset of my life. I know that for America there will always be a bright dawn ahead.
He lived out the rest of his days on the ranch, with his wife Nancy, who remained devoted to him to the end, by his side. He was buried at the Ronald Reagan Presidential Library in Simi Valley, California.

 

 

June 5, 1968, Senator Robert Kennedy is shot at the Ambassador Hotel in Los Angeles after winning the California presidential primary. Immediately after he announced to his cheering supporters that the country was ready to end its fractious divisions, Kennedy was shot several times by 22-year-old Palestinian Sirhan Sirhan. He was pronounced dead a day later, on June 6, 1968. He was 42 years old. On June 8, Kennedy was buried at Arlington National Cemetery, also the final resting place of his assassinated older brother, President John F. Kennedy.
After winning California’s primary, Kennedy was in the position to receive the Democratic nomination and face off against Richard Nixon in the general election.
As star athletes Rafer Johnson and Roosevelt Grier accompanied Kennedy out a rear exit of the Ambassador Hotel, Sirhan Sirhan stepped forward with a rolled up campaign poster, hiding his .22 revolver. He was only a foot away when he fired several shots at Kennedy. Grier and Johnson wrestled Sirhan to the ground, but not before five bystanders were wounded.
Sirhan, who was born in Palestine, confessed to the crime at his trial and received a death sentence on March 3, 1969. However, since the California State Supreme Court invalidated all death penalty sentences in 1972, Sirhan has spent the rest of his life in prison. According to the New York Times, he has since said that he believed Kennedy was “instrumental” in the oppression of Palestinians. Hubert Humphrey ended up running for the Democrats in 1968, but lost by a small margin to Nixon.

On June 5, 1944, more than 1,000 British bombers drop 5,000 tons of bombs on German gun batteries placed at the Normandy assault area, while 3,000 Allied ships cross the English Channel in preparation for the invasion of Normandy, D-Day.
The day of the invasion of occupied France had been postponed repeatedly since May, mostly because of bad weather and the enormous tactical obstacles involved. Finally, despite less than ideal weather conditions, or perhaps because of them, General Eisenhower decided on June 5 to set the next day as D-Day, the launch of the largest amphibious operation in history. Ike knew that the Germans would be expecting postponements beyond the sixth, precisely because weather conditions were still poor.
Among those Germans confident that an Allied invasion could not be pulled off on the sixth was Field Marshal Erwin Rommel, who was still debating tactics with Field Marshal Karl Rundstedt. Runstedt was convinced that the Allies would come in at the narrowest point of the Channel, between Calais and Dieppe; Rommel, following Hitler’s intuition, believed it would be Normandy. Rommel’s greatest fear was that German air inferiority would prevent an adequate defense on the ground; it was his plan to meet the Allies on the coast, before the Allies had a chance to come ashore. Rommel began constructing underwater obstacles and minefields, and set off for Germany to demand from Hitler personally more panzer divisions in the area.
Bad weather and an order to conserve fuel grounded much of the German air force on June 5; consequently, its reconnaissance flights were spotty. That night, more than 1,000 British bombers unleashed a massive assault on German gun batteries on the coast. At the same time, an Allied armada headed for the Normandy beaches in Operation Neptune, an attempt to capture the port at Cherbourg. But that was not all. In order to deceive the Germans, phony operations were run; dummy parachutists and radar-jamming devices were dropped into strategically key areas so as to make German radar screens believe there was an Allied convoy already on the move. One dummy parachute drop succeeded in drawing an entire German infantry regiment away from its position just six miles from the actual Normandy landing beaches. All this effort was to scatter the German defenses and make way for Operation Overlord, the Allied invasion of Normandy.