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F ed er a l R eser ve Ba n k o f D a llas

DALLAS, TEXAS

75222

C i r c u l a r No. 75-9
J a n u a r y 10, 1975

INTERPRETATION OF REGULATION D
T r e a tm e n t of Gold by Fed eral R e s e r v e Banks

TO ALL MEMBER BANKS
IN THE ELEVENTH FEDERAL RESERVE DISTRICT:
In r e s p o n s e to n u m e r o u s i n q u i r i e s re c e iv e d from m ember
b a n k s , th e B oard of G o v e r n o r s of the Fe d e ra l R e s e r v e System has
is s u e d an i n t e r p r e t a t i o n of R egulation D c o n s is tin g of q u e s ti o n s and
a n s w e r s re la tin g to th e repeal of the b a n on o w n e r s h i p of gold by
United States c itiz e n s .
P r in te d on the r e v e r s e of this c i r c u l a r is a copy of the
i n t e r p r e t a t i o n . Additional c o p ies will be f u r n i s h e d u p on r e q u e s t .
S in c e r e ly y o u r s ,
T . W. Plant
F i r s t Vice P r e s i d e n t

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

RESERVES OF MEMBER BANKS

INTERPRETATION OF REGULATION D

Questions and Answers Regarding the Treatment of Gold by Federal Reserve Banks

S E C T IO N 250.260 — M I S C E L L A N E O U S I N ­
T E R P R E T A T IO N S — G O L D C O IN A N D
B U L L IO N
T he Board has received num erous inquiries
from m em ber banks relating to the repeal of the
ban on ownership of gold by U nited States citi­
zens. Listed below are questions and answers
which affect m em ber banks and relate to the re­
sponsibilities o f the Federal Reserve System.

of U nited States currency and coin. G old in bul­
lion form is not U nited States currency. Since
the bullion value of U nited States gold coins far
exceeds their face value, m em ber banks would
n o t in practice distribute them over the counter
at face value to satisfy customer demand.
(2) Will the Federal Reserve Banks perform
services for member banks with respect to gold,
such as safekeeping or assaying? No.

(3) Will a Federal Reserve Bank accept gold
(1)
May gold in the form of coins or bullion be
as collateral for an advance to a member bank
counted as vault cash in order to satisfy reserve
under § 10(b) of the Federal Reserve Act? No.
requirements? No. Section 19(c) of the Federal
Reserve A ct requires th at reserve balances be
satisfied either by a balance maintained at the
By order of the Board of Governors, effective
Federal Reserve Bank or by vault cash, consisting
D ecem ber 17, 1974.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102