A United States gold disk that might be something new for some of you

[RWB]

The full explanation is the next numbered item. Is there something unclear about #4?

 

"4) The gold discs, and 5-oz gold bars made previously by the NY Assay Office, were a form of financial aid to the Saudis. A sovereign was valued at approximately $8.24 with gold at $35 per Troy ounce. The Saudi Government could sell them at $12-$14 each through the Banque de L’Indo-Chine, or at $14-$18 each in riyal exchange. But the Saudi Government could make a larger profit on sale of US gold discs for silver riyals than on sale of real sovereigns, even though the specifications were identical. In effect, the Saudi government doubled their money by reselling the US gold discs. Further profit was had by manipulating the exchange rate for silver riyals vs gold on the local market."

 

There was insufficient budget to "give" the Saudis the cash, but having them pay for the gold, then letting them resell for a big profit did the same thing. (The British had dedicated funds for this, the US did not.)

 

The concession royalty and payment to workers were totally separate. The royalty payment was specified in the original and amended agreements. Both British and US concession holder had to pay in sovereigns, only. Local workers were paid in silver riyals. Us and British nationals got dollars or pounds.

 

[AlbertPike-migration]

RWB is correct in stating that these have no US Territorial significance, but you cannot deny the elements of the two are very similar.

 

Conder101: Upon receiving the coin from NGC it was designated, if the curator at the Bundesbank does not know what to classify the piece maybe he should contact NGC. Everytime I email the Bundesbank it doesn't work.

 

After doing a bit of research on King Ibn Saud it would seem to me that the creation of the coins was a money issue. He had a lot of enemies, family and newly created country to manage and everyone wanted something from him. Having the Gold dispensed to the Saudi coffers was indeed a money making venture, as RWB points out.

 

 

[RWB]

When FDR met with King Abd al Aziz ibn Abd al Rahman Al Saud on Feb. 14, 1945 (following Yalta) one of the purposes was to get permission to build an air-transit base on the east coast of the peninsula. The base would be used to move US troops from Europe to Asia for the invasion of Japan.

 

The US was also in diplomatic and cultural competition with the British for influence in the area. The British had a long standing relationship with the King, but “…the Americans were interested in the business arrangement and were not interested in culturally rearranging the country the way the British were known to do. They were not a colonial power.”

 

Author Rachel Bronson describes the most important event of the meeting this way:

One of the striking results, on a personal level, was the story about the wheelchair. FDR and Abd Al Aziz met on the USS Quincy and Abd Al Aziz was lumbering toward FDR who is sitting in his wheelchair, sort of the old statesman. King Abd Al Aziz said something to the effect, ‘Aren’t you lucky you have something like that to move you around?’ Roosevelt had an extra wheelchair and gave it to Abd Al Aziz. It became one of the King’s most prized possessions. It was a symbol of their friendliness and the appreciation one had of the other.

 

The unplanned gift apparently made a deep impression on the King and was viewed by the Saudis as the American President’s willingness to share even his personal necessities with the King and his country.

 

The sums involved were modest, even by 1945 standards, but the US State Department’s approach helped much more than “throwing money” at the King. The American plan gave the King control and made him feel successful and increased his respect among his and other clans. (Diplomatic history can be subtle stuff and the Saudi gold discs were part of US diplomacy of the time.)

 

Excerpt from "National Gold" manuscript. Copyright 2013 by Roger W. Burdette