Roosevelt on April 5, 1933. It prohibited gold exportation from the UnitedStates. Another was the Gold Reserve Act of 1934, which raised the nominalprice of gold from $20.67 per troy ounce to $35.
The increase in the price of gold triggered a mad rush by American prospectors to Baguio’s gold mines inorder to fill the vacuum in the international gold market. Prospectors earnedenormous profits in the process. With gold revalued at $35 an ounce, thePhilippine gold industry hit the proverbial “gold mine.” According to Onofre D.Corpuz noted in his book entitled
An Economic History of the Philippines, “
Theonly major new industry sector in the economy developed late. The BenguetConsolidated Mining Company had modest outputs in gold ore before 1920, butexport began to be significant only during the next decade. Exports of gold oreamounted to P6.3 million in 1928; P11.2 million in 1929; P26 million in 1935;and P73.9 million topped only by sugar in 1940. With only very small balance,the entire output of the gold mining industry was exported to the UnitedStates.” Independence and not depression was the burning issue of thehour.
Franklin D. Roosevelt: Executive Order 6102, - Requiring Gold Coin, Gold Bullion and GoldCertificates to Be Delivered to the Government, April 5, 1933, see, online by Gerhard Peters and JohnT. Woolley,
The American Presidency Project
. http://www.presidency.ucsb.edu/ws/?pid=14611,accessed 30 July 2012, 3:55 AM.
Onofre D. Corpuz,
an Economic History of the Philippines
(Quezon City: University of thePhilippines Press, 1997), 261.