Chapter 356 – Preparing for Autumn

On May 17, the American government finally recognized the Soviet Union. The Roosevelt administration, which leaned heavily to the left, had apparently wanted to do so much earlier. However, strong domestic opposition to communism had forced it to spend considerable time persuading the public before it could proceed.

Then, on May 19, the U.S. government issued an order prohibiting the export of gold. As a result, the dollar was no longer convertible into gold. At the same time, private hoarding of gold coins and other forms of gold within the United States was also prohibited.

This directly affected the gold held by the Phoenix Fund, which had converted its assets into gold bullion and gold coins by 1929 and deposited them in various locations throughout the United States.

Fundamentally, the Phoenix Fund’s gold served as something close to collateral held by American banks, powerful