Second, Reed helped to successfully defend the administration's gold policy, saving the nation's monetary policy as well. Deflation had caused the value of the United States dollar to fall nearly 60 percent. But federal law still permitted Americans and foreign citizens to redeem paper money and coins in gold at its pre-Depression value, causing a run on the gold reserves of the United States. Taking the United States off the gold standard would stop the run. It would also further devalue the dollar, making American goods less expensive and more attractive to foreign buyers. In a series of moves, Roosevelt took the nation off the gold standard in March and April 1933, causing the dollar's value to sink. But additional deflation was needed. One way to do this was to raise the price of gold, but federal law required the Treasury to buy gold at its high, pre-Depression price. President Roosevelt asked the Reconstruction Finance Corporation to buy gold above the market price to further devalue the dollar. Although Treasury Secretary Henry Morgenthau, Jr. believed the government lacked the authority to buy gold, Reed joined with Treasury general counsel Herman Oliphant to provide critical legal support for the plan.