History of Gold Certificates
Gold certificates were paper currency similar to Federal Reserve notes available between 1865 and 1933. These could be redeemed for the stated amount in gold coins. The first certificates were issued to bank depositors in 1865, while the 1882 series allowed any holder to redeem the value in gold. The U.S. government ceased issuing certificates in 1933 when it went off the gold standard and possessing certificates was illegal until 1964.
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Origins
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The practice dates to the 17th century when customers deposited gold with London goldsmiths and were issued redeemable certificates.
Civil War
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Coin hoarding during the Civil War prompted the U.S. government to issue gold certificates that were intended to encourage wide circulation of currency.
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Some Non-Transferable
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Although the 1882 series allowed any person to redeem a gold certificate, series issued in 1888 and 1900 were only for depositors.
The End
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The Emergency Bank Act of 1933 took the United States off the gold standard in an effort to protect banking, thus ending redeemable certificates.
Worthless
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Possession of gold certificates was illegal until 1964 when the law was repealed, but they no longer had value except as a collector's item.
Other Certificates
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Swiss and German banks still issue gold certificates that are redeemable for the stated amount in gold coin or bullion.
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Resources
- Photo Credit U.S. Department of Treasury
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Comments
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The only thing that we carry in our pockets & purses now is worthless paper and coins with no value other than the confidence that the people place in it ~~ like working for nothing ~ or at best for value that the Fed Res has carte blanc to change at will ~ Abolish this evil and sinister cartel before it is too late ~~.
