“I never get tired of illustrating the fall of the dollar.” That was the first line of last week’s column, and what made me remember it, was the fact that I found 100 silver “Walking Liberty” halves, in my safe. I had no idea what they are worth, or how long I have had them, so I called our supplier, and he offered my $15 each for them, or $1500 for the 100. Fifty cent pieces, which in 1964, were worth 50 cents! 1964 was the date when the U.S. Treasury decided that silver was far too valuable than to waste it on quarters, dimes, and halves. That’s also when all the silver coins began to be collected by smart people who, even then, knew that eventually they would worth a lot more than their face value. But thirty times? It’ll be 40 times soon. Today a quarter is worth $7.50, and a half $15.00, in un-backed U.S. paper money, that is. Time has changed everything.
Here’s what the rest of consumer prices were in 1964, in un-backed U.S. dollars, of course.
Gallon of milk. – 93 cents.
Gasoline – a quarter a gallon.
Two Cokes for 27 cents.
New Mustang – $2320.
60% of Americans smoked then, and bought a pack of cigarettes for $1.60. The cancer danger came in 1965. Now, I think smokers are about 15%.
An average new home cost $20,000.
First class stamp was a nickel.
Minimum wage was $1.15 an hour.
The Dow-Jones stock price was 874.
You can figure out that today’s U.S. dollar is worth by yourself, but as
The price of gold in 1964 was $35 an ounce, and the price of silver was 60 cents an ounce.
Here’s another comparison, showing what happens to un-backed paper money. In Germany’s case, after WW I, the Treaty of Versailles, required Germany to pay for the damages she had done in the war. They lost, and had no money, so like the U.S. government today, they printed money to pay their bills. Today, the dollar is backed by the ‘full faith and credit of the U.S. government.’ In the 20’s the reichsmark, I am sure, was backed by the ‘full faith and credit of the German government.’ Same phrase.
The German reichsmark, before WW I, was worth about a U.S. quarter. It took four of them to make a U.S. dollar. In the mid -1920’s, it took 4.21 trillion German reichsmarks to make a U.S. dollar, and you can imagine what an ounce of gold or silver cost then. Today, the Russian ruble is worth a bit more than one U.S. penny.
Endowments
Ever wonder where rich people’s money went? I’ve often wondered, and here’s where a lot of it went.
Andrew Carnegie, the inventor of steel, gave away most of his fortune, and in my opinion, did the absolute best with it, compared to many rich people today. Carnegie built 2,500 libraries for towns across America. Phoenix Arizona and Silverton Colorado each have one. Carnegie donated 6,000 pipe organs to churches, and built Carnegie Hall in New York. He started Carnegie-Mellon University, and wrote a book titled “The Gospel of Wealth,” in which he told rich people that they should spread their wealth around to help people, and not to just have their name become familiar. He also spent his fortune on various foundations and endowments. Remember, this was all in gold and silver backed dollars of 150 years ago, which today would be in the many trillions.
In 1975, Bill Gates and Paul Allen started “Micro-Soft,” and both became multi-billionaires. Bill Gates recently said he is donating a billion dollars for medical research.
John D. Rockefeller left most to his kids, and they built Rockefeller Center, which includes “30 Rock,” office building, and Radio City Music Hall, right across the 5TH Ave. from St. Pat’s Cathedral. Some ran for office, and provided lots of jobs, but I have never heard of any going to places such as did Carnegie and Gates.
George Eastman invented the name KODAK, which meant nothing, but he became, as some called him, ‘the father of photography.’ After spreading a bit of wealth around Rochester New York, he committed suicide. No one today, knows what ‘film’ is, and his antecedents’ never kept up with the trade, but kept on making ‘film.’ Kodak, in Rochester, now has 500 employees, and used to have 50,000.
Henry Ford passed on his company and wealth, to his heirs, who incorporated Ford, enlarged it, and today it is huge, but mostly owned by stockholders. Part of the Ford wealth, started the Ford Foundation, which gives to all sorts of left wing outfits. Henry Ford would turn over in his grave, if he could witness what his foundation does.
Warren Buffett still lives in the same house he has always lived in, and his net worth is $131 Billion. He has given away $56.7 billion of it to various charities, and made his corporation very wealthy, with each share of stock costing thousands. All of this giving, has enriched his stock holders, and charities. I’ll give Buffett third place in my list. Today, Buffett’s donations are in U.S. dollars, which are about 1% or less, of their value in Carnegie’s day.
Henry Kroger started his grocery chain in 1895, and his innovations included self service, in house bakeries, and fresh meat, but he sold out in 1927, as left no philanthropy, as far as I can find.
I’m certain I have missed dozens of philanthropists who have done good things with their wealth, but surely Carnegie, Gates and Buffett head the list.
This all points to the fact, that in 61 years, gold has gone from $35 to $3800, and silver from 60 cents to $45. Had you, in 1964, bought a $100,000 life insurance policy, it would have bought you over 400,000 gallons of gasoline. Today, it would get you 28,000 gallons. In 1964, your $100,000 policy, would have bought you five now homes, and today? Now, a healthy down-payment on one? Had you bought $35 an ounce gold in 1964, today it would be worth over $212,000.
Save, not in un-backed paper money, which at the turn of a switch, can be multiplied as many times as is necessary, to pay ever increasing government bills, and endless welfare. Save in physical, eternal wealth, going as far back as Biblical times, which is in gold and silver, neither of which need any backing. They’re so beautiful! Call us, we do so well, that our 1% keeps us solvent!
Oh yes, I got the title from one of Bob Will’s favorites in the past, “Time Changes Everything,” and it has, that’s for sure. I always loved Bob Wills! It can be heard on you tube. Click on Bob Wills, Time changes everything. Enjoy.
-Don Stott Don@coloradogold.com