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[ P u b l i c —No.

87—73d

C on gress]

[H.R. 6976]
AN ACT
To protect the currency system of the United States, to provide for the better
use of the monetary gold stock of the United States, and for other purposes.

Be it enacted by the Senate and Home of Representatives of the
United States of America in Congress assembled, That the short,
title of this Act shall be the “ Gold Reserve Act of 1934.”
S ec. 2. (a) Upon the approval of this Act all right, title, and
interest, and every claim of the Federal Reserve Board, of every
Federal Reserve bank, and of every Federal Reserve agent, in and
to any and all gold coin and gold bullion shall pass to and are
hereby vested in the United States; and in payment therefor credits
in equivalent amounts in dollars are hereby established in the Treas­
ury in the accounts authorized under the sixteenth paragraph
of section 16 o f the Federal Reserve Act, as heretofore and by this
Act amended (U.S.C., title 12, sec. 467). Balances in such
accounts shall be payable in gold certificates, which shall be in such
form and in such denominations as the Secretary of the Treasury
may determine. All gold so transferred, not in the possession of
the United States, shall be held in custody for the United States
and delivered upon the order of the Secretary of the Treasury;
and the Federal Reserve Board, the Federal Reserve banks, and the
Federal Reserve agents shall give such instructions and snail take
such action as may be necessary to assure that such gold shall be
so held and delivered.
(b)
Section 16 of the Federal Reserve Act, as amended, is further
amended in the following respects:
(1) The third sentence of the first paragraph is amended to read
as follows: “ They shall be redeemed m lawful money on demand at
the Treasury Department of the United States, in the city of Wash­
ington, District of Columbia, or at any Federal Reserve bank.”
(2) So much of the third sentence of the second paragraph as
precedes the proviso is amended to read as follows: “ The collateral
security thus offered shall be notes, drafts, bills of exchange, or
acceptances acquired under the provisions of section 13 of this Act,
or bills o f exchange endorsed by a member bank of any Federal
Reserve district and purchased under the provisions of section. 14 of
this Act, or bankers acceptances purchased under the provisions
of said section 14, or gold certificates: ” .
(3) The first sentence of the third paragraph is amended to read
as follows: u Every Federal Reserve bank shall maintain reserves in
gold certificates or lawful money of not less than 35 per centum
against its deposits and reserves m gold certificates o f not less than
40 per centum against its Federal Reserve notes in actual circula­
tion: Provided, however, That when the Federal Reserve agent
holds gold certificates as collateral for Federal Reserve notes issued
to the bank such gold certificates shall be counted as part of the
reserve which such bank is required to maintain against its Federal
Reserve notes in actual circulation.”




2

[P u b . 87.]

(4) The fifth and sixth sentences of the third paragraph are
amended to read as follows: “ Notes presented for redemption at
the Treasury of the United States shall be paid out of the redemp­
tion fund and returned to the Federal Reserve banks through which
they were originally issued, and thereupon such Federal Reserve
bank shall, upon demand of the Secretary of the Treasury, reimburse
such redemption fund in lawful money or, if such Federal Reserve
notes have been redeemed by the Treasurer in gold certificates, then
such funds shall be reimbursed to the extent deemed necessary by
the Secretary of the Treasury in gold certificates, and such Federal
Reserve bank shall, so long as any of its Federal Reserve notes
remain outstanding, maintain with the Treasurer in gold certificates
an amount sufficient in the judgment of the Secretary to provide
for all redemptions to be made by the Treasurer. Federal Reserve
notes received by the Treasurer otherwise than for redemption ma^
be exchanged for gold certificates out of the redemption fund here­
inafter provided and returned to the Reserve bank through which
they were originally issued, or they may be returned to such bank
for the credit of the United States.*’
(5) The fourth, fifth, and sixth paragraphs are amended to read
as follows:
“ The Federal Reserve Board shall require each Federal Reserve
bank to maintain on deposit in the Treasury of the United States
a sum in gold certificates sufficient in the judgment of the Secretary
of the Treasury for the redemption of the Federal Reserve notes
issued to such bank, but in no event less than 5 per centum of the
total amount of notes issued less the amount of gold certificates held
by the Federal Reserve agent as collateral security; but such deposit
of gold certificates shall be counted and included as part of the 40
per centum reserve hereinbefore required. The Board shall have the
right, acting through the Federal Reserve agent, to grant in whole
or in part, or to reject entirely the application of any Federal
Reserve bank for Federal Reserve notes; but to the extent that such
application may be granted the Federal Reserve Board shall,
through its local Federal Reserve agent, supply Federal Reserve
notes to the banks so applying, and such bank shall be charged with
the amount of the notes issued to it and shall pay such rate of
interest as may be established by the Federal Reserve Board on only
that amount of such notes which equals the total amount of its
outstanding Federal Reserve notes less the amount of gold cer­
tificates held by the Federal Reserve agent as collateral security.
Federal Reserve notes issued to any such bank shall, upon delivery,
together with such notes of such Federal Reserve bank as may be
issued under section 18 of this Act upon security o f United States
2 per centum Government bonds, become a first and paramount
lien on all the assets of such bank.
“Any Federal Reserve bank may at any time reduce its liability
for outstanding Federal Reserve notes by depositing with the Fed­
eral Reserve agent its Federal Reserve notes, gold certificates, or
lawful money of the United States. Federal Reserve notes so depos­
ited shall not be reissued, except upon compliance with the con­
ditions of an original issue.
“ The Federal Reserve agent shall hold such gold certificatesor
lawful money available exclusively for exchange for Hie outstanding




[P u b. 87.]

3

Federal Reserve notes -when offered by the Reserve bank of which he
is a director. Upon the request of the Secretary of the Treasury
the Federal Reserve Board shall require the Federal Reserve agent
to transmit to the Treasurer of the United States so much of the
gold certificates held by him as collateral security for Federal Reserve
notes as may be required for the exclusive purpose of the redemption
of such Federal Reserve notes, but such gold certificates when
deposited with the Treasurer shall be counted and considered as if
collateral security on deposit with the Federal Reserve agent.”
(6) The eighth paragraph is amended to read as follows:
“All Federal Reserve notes and all gold certificates and lawful
money issued to or deposited with any Federal Reserve agent under
the provisions of the Federal Reserve Act shall hereafter be held
for such agent, under such rules and regulations as the Federal
Reserve Board may prescribe, in the joint custody of himself and
the Federal Reserve bank to which he is accredited. Such agent
and such Federal Reserve bank shall be jointly liable for the safe­
keeping of such Federal Reserve notes, gold certificates, and lawful
money. Nothing herein contained, however, shall be construed to
prohibit a Federal Reserve agent from depositing gold certificates
with the Federal Reserve Board, to be held by such Board subject
to his order, or with the Treasurer of the United States for the
purposes authorized by law.”
(7) The sixteenth paragraph is amended to read as follows:
“ The Secretary of the Treasury is hereby authorized and directed
to receive deposits of gold or of gold certificates with the Treasurer
or any Assistant Treasurer of the United States when tendered by
any federal Reserve bank 01* Federal Reserve agent for credit to
its or his account with the Federal Reserve Board. The Secretary
shall prescribe by regulation the form of receipt to be issued by the
Treasurer or Assistant Treasurer to the Federal Reserve bank or
Federal Reserve agent making the deposit, and a duplicate of such
receipt shall be delivered to the Federal Reserve Board by the
Treasurer at Washington upon proper advices from any Assistant
Treasurer that such deposit has been made. Deposits so made shall
be held subject to the orders of the Federal Reserve Board and shall
be payable in gold certificates on the order of the Federal Reserve
Board to any Federal Reserve bank or Federal Reserve agent at the
Treasury or at the Subtreasury of the United States nearest the place
of business of such Federal Reserve bank or such Federal Reserve
agent. The order used by the Federal Reserve Board in making
such payments shall be signed by the governor or vice governor, or
such other officers or members as the Board may by regulation pre­
scribe. The form of such order shall be approved by the Secretary
o f the Treasury.”
(8) The eighteenth paragraph is amended to read as follows:
“ Deposits made under this section standing to the credit of any
Federal Reserve bank with the Federal Reserve Board shall, at the
option of said bank, be counted as part of the lawful reserve which
it is required to maintain against outstanding Federal Reserve
notes, or as a part of the reserve it is required to maintain against
deposits.”
v oec. 3. The Secretary of the Treasury shall, by regulations issued
/
hereunder, with the approval o f the President, prescribe the condi­




4

[P u b . 87.1

tions under which gold may be acquired and held, transported,
melted or treated, imported, exported, or earmarked: (a) for indus­
trial, professional, and artistic use; (b) by the Federal Reserve banks
for the purpose of settling international balances; and, (c) for such
other purposes as in his judgment are not inconsistent with the pur­
poses o f this Act. Gold in any form may be acquired, transported,
melted or treated, imported, exported, or earmarked or held in cus­
tody for foreign or domestic account (except on behalf of the United
States) only to the extent permitted by, and subject to the condi­
tions prescribed in, or pursuant to, such regulations. Such regula­
tions may exempt from the provisions of this section, in whole or in
part, gold situated in the Philippine Islands or other places beyond
the limits of the continental United States.
S ec. 4. Any gold withheld, acquired, transported, melted or
treated, imported, exported, or earmarked or held in custody, in
violation of this Act or of any regulations issued hereunder, or
licenses issued pursuant thereto, shall be forfeited to the United
States, and may be seized and condemned by like proceedings as
those provided by law for the forfeiture, seizure, and condemnation
of property imported into the United States contrary to law; and in
addition any person failing to comply with the provisions of this
Act or o f any such regulations or licenses, shall be subject to a penalty
equal to twice the value of the gold in respect of which such failure
occurred.
S ec. 5. N o gold shall hereafter be coined, and no gold coin shall
hereafter be paid out or delivered by the United States: Provided,
however, That coinage may continue to be executed by the mints
of the United States for foreign countries in accordance with the
Act o f January 29, 1874 (U.S.C., title 31, sec. 367). All gold coin
o f the United States shall be withdrawn from circulation, and,
together with all other gold owned by the United States, shall be
formed into bars o f such weights and degrees o f fineness as the
Secretary of the Treasury may direct.
v S ec. 6. Except to the extent permitted in regulations which may
be issued hereunder by the Secretary o f the Treasury with the
approval o f the President, no currency of the United States shall
be redeemed in gold: Provided, however, That gold certificates owned
by the Federal Reserve banks shall be redeemed at such times and in
such amounts as, in the judgment of the Secretary o f the Treasury,
are necessary to maintain the equal purchasing power of every kind
o f currency of the United States: And provided further, That the
reserve for United States notes and for Treasury notes of 1890, and
the security for gold certificates (including the gold certificates held
in the Treasury for credits payable therein) shall be maintained
in gold bullion equal to the dollar amounts required by law, and
the reserve for Federal Reserve notes shall be maintained in gold
certificates, or in credits payable in gold certificates maintained with
the Treasurer of the United States under section 16 o f the Federal
Reserve Act, as heretofore and by this Act amended.
No redemptions in gold shall be made except in gold bullion bear­
ing the stamp of a United States mint or assay office in an amount
equivalent at the time of redemption to the currency surrendered
for such purpose.




[ P u b . 8 7.]

5

S ec. 7. In the event that the weight of the gold dollar shall at
any time be reduced, the resulting increase in value of the gold held
by the United States (including the gold held as security for gold
certificates and as a reserve for any United States notes and for
Treasury notes of 1890) shall be covered into the Treasury as a mis­
cellaneous receipt; and, in the event that the weight of the gold
dollar shall at any time be increased, the resulting decrease in value
of the gold held as a reserve for any United States notes and for
Treasury notes of 1890, and as security for gold certificates shall be
compensated by transfers of gold bullion from the general fund, and
there is hereby appropriated an amount sufficient to provide for such
transfers and to cover the decrease in value of the gold in the general
fund.
S ec. 8. Section 3700 of the Revised Statutes (U.S.C., title 31,
sec. 734) is amended to read as follows :
“ S ec. 3700. With the approval of the President, the Secretary of
the Treasury may purchase gold in any amounts, at home or abroad,
with any direct obligations, coin, or currency of the United States,
authorized by law, or with any funds in the Treasury not otherwise
appropriated, at such rates and upon such terms and conditions as
he may deem most advantageous to the public interest; any provision
of law relating to the maintenance of parity, or limiting the purposes
for which any of such obligations, coin, or currency, may be issued,
or requiring any such obligations to be offered as a popular loan or
on a competitive basis, or to be offered or issued at not less than
par, to the contrary notwithstanding. All gold so purchased shall
be included as an asset of the general fund of the Treasury.”
S ec. 9. Section 3699 of the Revised Statutes (U.S.C., title 31, sec.
733) is amended to read as follows:
“ Sec. 3699. The Secretary of the Treasury may anticipate the

payment of interest on the public debt, by a period not exceeding
one year, from time to time, either with or without a rebate of inter­
est upon the coupons, as to him may seem expedient; and he may
sell gold in any amounts, at home or abroad, in such manner and
a t such rates and upon such terms and conditions as he may deem
most advantageous to the public interest, and the proceeds of any gold
so sold shall be covered into the general fund of the Treasury:
Provided, however, That the Secretary of the Treasury may sell the
gold which is required to be maintained as a reserve or as security
for currency issued by the United States, only to the extent necessary
to maintain such currency at a parity with the gold dollar.”
S ec* 10. (a) For the purpose of stabilizing the exchange value of
.
the dollar, the Secretary of the Treasury, with the approval of the
President, directly or through such agencies as he may designate, is
authorized, for the account of the fund established in this section,
to deal in gold and foreign exchange and such other instruments of
credit and securities as he may deem necessary to carry out the pur­
pose o f this section. An annual audit o f such fund shall be made and
a report thereof submitted to the President.
(b)
To enable the Secretary of the Treasury to carry out the pro­
visions of this section there is hereby appropriate^, out o f the
receipts which are directed to be covered into the Treasury under
section 7 hereof, the sum of $2,000,000,000, which sum when available




6

[P ub. 87.]

shall be deposited with the Treasurer of the United States in a sta­
bilization fund (hereinafter called the “ fund ” ) under the exclusive
control o f the Secretary o f the Treasury, with the approval of the
President, whose decisions shall be final and not be subject to review
by any other officer of the United States. The fund shall be available
for expenditure, under the direction of the Secretory of the Treasury
and in his discretion, for any purpose in connection with carrying
out the provisions of this section, including the investment and rein­
vestment in direct obligations or the United States of any portions
of the fund which the Secretary of the Treasury, with the approval
of the President, may from time to time determine are not currently
required for stabilizing the exchange value of the dollar. The pro­
ceeds of all sales and investments and all earnings and interest accru­
ing under the operations o f this section shall be paid into the fund
and shall be available for the purposes of the fund.
(c)
All the powers conferred by this section shall expire two years
after the date of enactment of this Act, unless the President shall
sooner declare the existing emergency ended and the operation of the
stabilization fund terminated; Dut the President may extend such
period for not more than one additional year after such date by proc­
lamation recognizing the continuance 01 such emergency.
S ec. 11. The Secretary of the Treasury is hereby authorized to
issue, with the approval of the President, such rules and regulations
as the Secretary may deem necessary or proper to carry out the
purposes o f this Act.
S ec. 12. Paragraph (b) (2), of section 43, title III, of the Act
approved May 12, 1933 (Public, Numbered 10, Seventy-third Con­
gress) , is amended by adding two new sentences at the end thereof,
reading as follows:
“ Nor shall the weight of the gold dollar be fixed in any event at
more than 60 per centum o f its present weight. The powers of the
President specified in this paragraph shall be deemed to be separate,
distinct, and continuing powers, and may be exercised by him, from
time to time, severally or together, whenever and as the expressed
objects of this section in his judgment may require; except that such
powers shall expire two years after the date of enactment of the
Gold Reserve Act of 1934 unless the President shall sooner declare
the existing emergency ended, but the President may extend such
period for not more than one additional year after such date by proc­
lamation recognizing the continuance of such emergency.”
Paragraph (2) o f subsection (b) of section 43, title III, of an
Act entitled “An Act to relieve the existing national economic emer­
gency by increasing agricultural purchasing power, to raise revenue
for extraordinary expenses incurred by reason of such emergency, to
provide emergency relief with respect to agricultural indebtedness,
to provide for the orderly liquidation of joint-stock land banks, and
for other purposes ”, approved May 12, 1933, is amended by adding
at the end of said paragraph (2) the following:
“ The President, in addition to the authority to provide for the
unlimited coinage of silver at the ratio so fixed, under such terms
and conditions as he may prescribe, is further authorized to cause
to be issued and delivered to the tenderer of silver for coinage, silver
certificates in lieu o f the standard silver dollars to which the tend­




(P u b . 87.1

7

erer would be entitled and in an amount in dollars equal to the
number of coined standard silver dollars that the tenderer of such
silver for coinage would receive in standard silver dollars.
“ The President is further authorized to issue silver certificates
in such denominations as he may prescribe against any silver
bullion, silver, or standard silver dollars in the Treasury not then
held for redemption of any outstanding silver certificates, and to
coin standard silver dollars or subsidiary currency for the redemp­
tion o f such silver certificates.
“ The President is authorized, in his discretion, to prescribe dif­
ferent terms and conditions and to make different charges, or to
collect different seigniorage, for the coinage of silver of foreign
production than for the coinage of silver produced in the United
States or its dependencies. The silver certificates herein referred to
shall be issued, delivered, and circulated substantially in conformity
with the law now governing existing silver certificates, except as
may herein be expressly -provided to the contrary, and shall have
and possess all of the privileges and the legal tender characteristics
of existing silver certificates now in the Treasury of the United
States, or in circulation.
“ The President is authorized, in addition to other powers, to
reduce the weight of the standard silver dollar in the same percentage
that he reduces the weight of the gold dollar.
“ The President is further authorized to reduce and fix the weight
of subsidiary coins so as to maintain the parity of such coins with
the standard silver dollar and with the gold dollar.”
S ec. 13. All actions, regulations, rules, orders, and proclamations
heretofore taken, promulgated, made or issued by the President
of the United States or the Secretary o f the Treasury, under the
Act of March 9, 1988, 01* under section 43 or section 45 of title II I
of the Act o f May 12, 1933, are hereby approved, ratified, and
confirmed.
S ec. 14. (a) The Second Liberty Bond Act, as amended, is further
amended as follows:
(J) By adding at the end of section 1 (U.S.C., title 31, sec. 752;
Supp. V II, title 31, sec. 752), a new paragraph as follows:
“ Notwithstanding the provisions of the foregoing paragraph, the
Secretary of the Treasury may from time to time, when he deems
it to be in the public interest, offer such bonds otherwise than as a
popular loan and he may make allotments in full, or reject or reduce
allotments upon any applications whether or not the offering was
made as a popular loan.
(2) By inserting in section 8 (U.S.C., title 31, sec. 771), after the
words “ certificates of indebtedness ” , a comma and the words
“ Treasury bills ” .
(3) By striking out the figures “ $7,500,000,000” where they
appear in section 18 (U.S.C., title 31, sec. 753) and inserting in lieu
thereof the figures “ $10,000,000,000.”
(A) By adding thereto two new sections, as follows:
“ S ec. 19. Notwithstanding any other provisions o f law, any obli­
gations authorized by this Act may be issued for the purchase,
redemption, or refunding, at or before maturity, of any outstanding
bonds, notes, certificates of indebtedness, or Treasury bills, o f the




8

[P u b . 87.1

United States, or to obtain funds for such purchase, redemption, or
refunding, under such rules, regulations, terms, and conditions as
the Secretary of the Treasury may prescribe.
u S ec. 20. The Secretary of the Treasury may issue any obliga­
tions authorized by this Act and maturing not more than one year
from the date of their issue on a discount basis and payable at
maturity without interest. Any such obligations may also be offered
for sale on a competitive basis under such regulations and upon such
terms and conditions as the Secretary o f the Treasury may prescribe,
and the decisions of the Secretary in respect of "any issue shall
be final.”
(b) Section 6 of the Victory Liberty Loan Act (U.S.C., title 31,
sec. 767; Supp. V II, title 31, secs. 767-767a) is amended by striking
out the words “ for refunding purposes ” , together with the preceding
comma, at the end of the first sentence of subsection (a).
(c) The Secretary of the Treasury is authorized to issue gold
certificates in such form and in such denominations as he may deter­
mine, against any gold held by the Treasurer of the United States,
except the gold fund held as a reserve for any United States notes
and Treasury notes o f 1890. The amount o f gold certificates issued
and outstanding shall at no time exceed the value, at the legal
standard, o f the gold so held against gold certificates.
S ec. 15. As used in this Act the term “ United States ” means
the Government of the United States; the term “ the continental
United States ” means the States of the United States, the District
of Columbia, and the Territory of Alaska; the term “ currency of
the United States” means currency which is legal tender in the
United States, and includes United States notes, Treasury notes of
1890, gold certificates, silver certificates, Federal Reserve notes, and
circulating notes of Federal Reserve banks and national banking
associations; and the term “ person ” means any individual, partner­
ship, association, or corporation, including the Federal Reserve
Board, Federal Reserve banks, and Federal Reserve agents. Wher­
ever reference is made in this Act to equivalents as between dollars
or currency of the United States and gold, one dollar or one dollar
face amount of any currency of the United States equals such a
number of grains ox gold, nine tenths fine, as, at the time referred to,
are contained in the standard unit of value, that is, so long as the
President shall not have altered by proclamation the weight of the
gold dollar under the authority of section 43, title III, of the Act
approved May 12, 1933, as heretofore and by this Act amended,
twenty-five and eight tenths grains o f gold, nine tenths fine, and
thereafter such a number of grains of gold, nine tenths fine, as the
President shall have fixed under such authority.
S ec. 16. The right to alter, amend, or repeal this Act is hereby
expressly reserved. I f any provision of this Act, or the application
thereof to any person or circumstances, is held invalid, the remainder
o f the Act, and the application of such provision to other persons
or circumstances, shall not be affected thereby.
S ec. 17. All Acts and parts of Acts inconsistent with any of the
provisions o f this Act are hereby repealed.
Approved, January 30, 1934.