Lead: In 1895 John Pierpont Morgan, a New York banker, arranged to loan gold worth $65,000,000 to the United States Government. This may have prevented national bankruptcy.

Intro.: A Moment in Time with Dan Roberts.

Content: Before the establishment of the United States Federal Reserve System, government financial leaders were convinced that people would trust government issued paper money only if it was freely convertible to precious metal, gold or silver. Theoretically, anyone could go into a bank and exchange paper money with a face value of, say twenty dollars, for an equivalent amount of gold. During the depression triggered by the Stock Market Crisis of 1893, many people especially foreign investors exchanged their paper money for gold.