What is hjr 192

Last updated: April 1, 2026

Quick Answer: HJR 192 is House Joint Resolution 192, a landmark 1933 United States congressional resolution that abrogated gold clauses in contracts and removed the gold standard backing for currency.

Key Facts

Historical Context of HJR 192

House Joint Resolution 192 was enacted during the Great Depression, a period of severe economic crisis in the United States. President Franklin D. Roosevelt signed this resolution as part of his New Deal economic programs designed to stabilize the economy and provide relief to Americans suffering from the financial collapse. The resolution represented a major shift in how the United States managed its currency and financial system.

Gold Clauses and Contracts

Before HJR 192, many contracts, bonds, mortgages, and financial instruments included gold clauses. These clauses required that debts be paid in gold or equivalent gold value rather than regular currency. For creditors, gold clauses protected their interests during economic downturns by guaranteeing payment in precious metal. However, gold clauses limited the government's ability to manage the money supply and economy during financial crises.

Economic Impact and Implications

By abrogating gold clauses, HJR 192 gave the federal government greater control over monetary policy. The resolution allowed the government to devalue the dollar relative to gold, making American exports more competitive and encouraging domestic spending. This devaluation helped stimulate the economy by making goods cheaper for foreign buyers and increasing inflation, which helped debtors who owed fixed amounts of currency.

Long-Term Significance

HJR 192 marked the effective end of the gold standard in the United States, though the formal gold standard remained until 1971. The resolution demonstrated the government's willingness to modify contractual obligations in pursuit of larger economic goals. It remains historically significant as an example of emergency economic policy during national crisis and established precedents for how the government can manage financial systems during emergencies.

Related Questions

What was the gold standard in the United States?

The gold standard was a monetary system where the value of currency was directly backed by gold. Under this system, paper money could theoretically be exchanged for a fixed amount of gold, limiting how much currency the government could issue and constraining monetary policy flexibility.

What was the New Deal?

The New Deal was President Franklin D. Roosevelt's set of economic programs and policies enacted during the Great Depression starting in 1933. It included relief programs, public works projects, and financial reforms designed to provide immediate help, recovery, and long-term economic stability.

How did HJR 192 affect debtors and creditors?

HJR 192 benefited debtors by allowing them to pay debts in regular currency rather than gold, while creditors lost the protection gold clauses provided. The resolution effectively reduced the real value of debts, helping borrowers while reducing the security of creditors' investments.

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Sources

  1. Wikipedia - Gold Clause CC-BY-SA-4.0
  2. Wikipedia - New Deal CC-BY-SA-4.0
  3. Wikipedia - Gold Standard CC-BY-SA-4.0