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Section: Daily Dispatches

U.S. Law May Still Authorize Seizure
of Gold and Silver; GATA Queries Treasury

Press Release via Business Wire
Thursday, January 27, 2005

Despite recent assurances to the contrary from the
U.S. Treasury Department, U.S. law still appears
to empower the president to seize gold and silver
coins, bullion, and shares in mining companies
from private citizens, the Gold Anti-Trust Action
Committee says.

While GATA believes that the law may violate
the U.S. Constitution's prohibition against the
government's taking private property for public
use without paying fair compensation, precious
metals investors may still be in some jeopardy
here. So GATA has written to the Treasury
Department seeking clarification and a meeting
with department officials.

The text of GATA's letter is appended.

Protecting precious metals investors and the
mining industry against threats like this would
seem to come within the province of gold
industry organizations. But since such
organizations do no advocacy of precious metals
when governments may get in the way, and little
advocacy in any case, this work has fallen to

The Treasury Department is not likely to respond
to GATA's letter without some prodding from the
congressmen who represent metals investors and
mining companies, so U.S. citizens are asked to
share the letter with their congressmen and the
mining companies in which they are invested
and to ask the congressmen and mining
companies to get involved with the issues the
letter raises.

* * *


January 20, 2005

Roberta K. McInerney
Assistant General Counsel/Banking and Finance
Department of the Treasury
Washington, D.C. 20220

Dear Ms. McInerney:

Michael Kirk of U.S. Rep. John B. Larson's office has
forwarded to me your letter to him of December 17,
which answered my e-mailed inquiry to him about
forcible redemption by the Treasury Department of
gold and silver coins held by private citizens. You
replied that a statute empowering the Treasury
Department to do that, 12 U.S.C. Section 248(n),
had been repealed.

But since reading your letter I have learned of a similar
statute: Title 12, Chapter 2, Subchapter IV, Section 95a,
which provides in part:

"During the time of war, the president may, through
any agency that he may designate, and under such rules
and regulations as he may prescribe, by means of
instructions, licenses, or otherwise -- (A) investigate,
regulate, or prohibit, any transactions in foreign
exchange, transfers of credit or payments between, by,
through, or to any banking institution, and the
importing, exporting, hoarding, melting, or earmarking
of gold or silver coin or bullion, currency or
securities. ..."

Section 95a further authorizes the president to "prevent"
the "use" by U.S. citizens of any property "in which a
foreign country or a national thereof has any interest."

These provisions are of the greatest concern to investors
in gold and silver bullion, coins, and shares of gold and
silver mining companies, and to those companies
themselves. So the Gold Anti-Trust Action Committee
urgently requests that the Treasury Department explain
how it construes these provisions. Particularly, we'd like
to know:

-- How does the Treasury Department construe "the time
of war"? How can gold and silver investors know when
the powers described in Section 95a are in operation or
likely to come into operation? Are formal declarations
of war by Congress required here, or lesser declarations,
or none at all, but rather declarations made only by the

-- How does the Treasury Department construe
"hoarding"? Does it include the ordinary collection of
gold and silver coins, numismatic or not, and bullion by
U.S. citizens, businesses, and corporations, absent any
collaboration with enemies of the United States?

-- Does the Treasury Department construe Section 95a
to empower the president to interfere with the ownership
of shares in gold and silver mining companies merely
because shares of such companies also might be owned
by foreign nationals or foreign governments, at war
with the United States or not? Under what
circumstances would the president be so empowered?

In essence, we need to know whether Section 95a
contemplates the instant destruction of gold and silver
investors and the precious metals mining industry in
the United States. So the Gold Anti-Trust Action
Committee asks the Treasury Department for a
meeting with the officials who might become responsible
for implementing Section 95a, at which we might discuss
the concerns of precious metals investors and mining
companies. Would you kindly forward our request to the
appropriate people?

Thanks for your help.


Chris Powell, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112

Centennial Precious Metals
3033 East First Ave., Suite 807
Denver, Colorado 80206
Michael Kosares, Proprietor

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
Don Stott, Proprietor

El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203

Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
+353 1 2315260/6
Fax: +353 1 2315202

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889

178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Fax: 514-875-6484

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
Ed Lee, Proprietor

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
Dr. Fred I. Goldstein, Senior Broker

The Moneychanger
Box 178
Westpoint, Tennessee 38486
Franklin Sanders
1-888-218-9226, 931-766-6066



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