No More Stacking Gold. The End of a Beautiful Bank Note Era.
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- เผยแพร่เมื่อ 6 ก.ย. 2024
- Gold Certificates were issued by the United States Treasury as a form of representative paper currency from 1865 to 1934. While the United States was on the gold standard, the certificates offered a more convenient way to pay in gold than the use of coins. Gold Certificates were first authorized under the Legal Tender Act of 1863, but not printed until 1865.
The three main reasons Gold Certificates were needed as paper currency was, one, to promote, and keep, the flow of gold into the U.S. Treasury helping to maintain the credit of the government to pay for the Civil War, two: legal limitations of United States Notes, also known as Legal Tender Notes, which at the time were the only form of circulating paper currency.
The short run series was issued for circulation form only 1929 to 1933 and matched the existing Federal Reserve denominations including the 500, 1000, 5000 and 10000 denominations with the exception of the largest denomination ever issued by the United States Treasury.
It’s the history, the people, the artistry, and beauty that make banknotes so much more than “money”. With that, for my first video, I’d like to share my small size ten through one hundred Series 1928 Gold Certificates, which I completed last year. But before that - of course there is a story behind the last Gold Certificates issued by the United States Treasury.
Gold Certificates were issued by the United States Treasury as a form of representative paper currency from 1865 to 1934. While the United States was on the gold standard, the certificates offered a more convenient way to pay in gold than the use of coins. Gold Certificates were first authorized under the Legal Tender Act of 1863, but not printed until 1865.
The three main reasons Gold Certificates were needed as paper currency was, one, to promote, and keep, the flow of gold into the U.S. Treasury helping to maintain the credit of the government to pay for the Civil War, two: legal limitations of United States Notes, also known as Legal Tender Notes, which at the time were the only form of circulating paper currency.
United States Notes could not be used to pay customs duties or interest on the federal debt thereby limiting the amount of hard currency coming into the U.S. Treasury. United States Notes were a fiat currency, not backed by hard currency - silver or gold. A story by itself that has too many rabbit holes. And finally, number three, gold and silver are heavy - 16, 20 dollar coins weigh one pound making it difficult to transport in large quantities. From 1879 until their elimination in 1933 Gold Certificates were identical in value to the same denomination of any U.S. currency type.
On April 5, 1933, President Franklin D. Roosevelt issued Executive Order 6102 removing the dollar from the Gold Standard and outlawing the ownership of gold, in any form. The Executive Order read in part, “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States." The executive order was part of the amended the Emergency Banking Act of March 1933. The Order did allow for private ownership of less than $100 for various needs, including coin collectors.
The main rationale behind Executive Order 6102 was to remove the constraint on the Federal Reserve which was prevented from increasing the money supply during the Great Depression. The Federal Reserve Act of 1913 required that 40% of all issued Federal Reserve Notes were backed by gold. By the onset of the Great Depression the Federal Reserve had almost reached the limit of allowable credit.
It took over four decades and four Presidential administrations to repeal most of Roosevelt’s Executive Order 6102. Beginning with private ownership of gold certificates was legalized by a Treasury Department memo dated April 1964 that removed all restrictions on the holding and acquisition of Gold Certificates issued by the United States Government prior to January 30, 1934.
In August of 1971 President Richard Nixon abandoned the gold standard entirely. Limitation of gold ownership in the U.S. was repealed when President Gerald Ford signed a bill to permit U.S. citizens to purchase, hold, and sell gold taking effect December 31, 1974. And finally, in October of 1977, the 1933 resolution was amended to allow include gold clauses for contracts.
Currency, Money, Collecting, Numismatist, Numismatic, Numismatist, History, Dollar, Bank note, Banknote, Hobby, Coin, Gold, Silver, Unites States Money, Bureau of Engraving & Printing, United States Treasury, Paper Currency, Gold Certificate, Silver Certificate, Legal Tender Note, United States Note, National Banknote, Obsolete Banknote, Federal Reserve Note, Federal Reserve Bank Note, National Bank Note, Small Size Bank Notes, U.S. Mint, US Mint, Obsolete Bank note
I know how difficult it is to produce videos. Something tells me YOU are the only person involved in the process. It’s amazing the quality you put together by yourself in such a short period of time. Great stuff always!
Thanks Steve and yep just me. But the good thing is that I do exactly what I want! As always appreciate the support.
A couple of legends chit chatting!😊
Prior to FDR, gold clauses were standard in business contracts for term options. Carter simply brought it back as legal.
THANK YOU! Appreciate the answer and comment.
Beautiful notes! Your videos are so info-packed that they are always worth a rewatch to try and retain more of the info each time!
Thanks Joe!
You should do a video on the 1869 rainbow series, The fact that they were only issued for one series means there has to be some kind of interesting back story to it.
Great idea - going in this what happens to the rainbows?
Hi Dan! What a great topic to collect! It is a dream to have some of these gold certificate banknotes in my collection!!!! Great video!!!
They are GREAT notes - if I had to recommend one or two to start is look at the Series 1922 $10 and $20 notes. They are reasonable and just a striking note - some similarity to what the rest of the world issues today!
@@PolarCurrency Hi Dan! Thank you for the information! I will take a look at the series!!
Outstanding video! 💥Appreciate all the information and history. ❤❤👍
Thanks Ontario - means a lot coming from you.
Another high quality video. Your videos aren’t too long. Viewers can speed them up if they want to.
Thanks Bryan! And you’re correct. They are exactly the length I want them to be!
Thanks for the video, love love love the history, GOD Bless
Kind words and thanks for watching and the comment.
Im not sure if people know/remember that there was a provisionin 6102 in Section 2b stating that you could still own up to $100 in collectible gold coins,bullion,or gold certs,as well as people in industry,art,and even dentists could still make gold fillings.Those backs are definitely orange,lol.The 1928 $50 and $100 gold certs have some good value.Tbe 1922 $10 and $20 are affordable in lower grades.Another great job putting out such info.👍( that's my gold thumb)😄
That is true for 6102 the numismatics at least worked in something to collect. Would be interesting to see the Series 1934 go public because those backs are so cool. Wonder if they are still around or were destroyed? U.S. Treasury basement vault conspiracy theory. Thanks for the kind words and comment.
Forgot to add - appreciate the 'gold thumb' LOL
@@PolarCurrency I guarantee there's all kinds of stuff in those vaults
I was one of the 30% and again one of these viewers! Haha Totally understand my friend, it takes time to makes videos ESPECIALLY the kind of content you produce. Don’t stress and do it as time allows, TH-cam will be here. Thanks again my friend!
No stress just reality! As always thanks Silver Surfer!
Very Nice display!
Thanks for comment and stopping by
@@PolarCurrency I'm a relatively new currency collector in my 80s. Small budget. Can you recommend a source where I can buy notes? Condition is not terribly important.
Thanks
@@BlueGoose-u5x That's great to hear! My first recommendation, and you may already have it, is to get the book: Paper Money of the United States 23rd edition by Arthur & Ira Friedberg. It has the most updated price guide and it was just released this month. My shopping first recommendation is to shop eBay - you don't have to purchase right away. Select a note that you are interested in and go to eBay and search by category or type in the note type etc. in the search bar. Like everything eBay is good and bad and that's why you need the Paper Money book for the price guide so you know you're not paying too much or when you're getting a good deal! Your local coin shop is your next best bet but I would call ahead to see if they carry more than 50 banknotes. Many coin dealers have very little currency so it's not worth your time - use your phone to save you time. If you're lucky you will have 1-2 within 30 minutes that do have currency. Last recommendation is coin/currency shows. Many metros have smaller shows going on every other weekend or so - but they are hit or miss. Good luck.
@@PolarCurrency Thanks for taking time to reply. I have the book and a green sheet. I think the key is to find an honest source, whatever that may be.
@@BlueGoose-u5x You are way ahead of the curve with both of those. My rule of thumb is eBay is best for notes $200 or less in value - that's because I live in an area that has almost no coin dealers that carry currency. Good luck!
Those are nice Gold Certificates. I do wish I had some more small size gold certificates in my collection but they can be somewhat expensive depending on the denomination. I would love to have a 1928 $10,000 dollar gold certificate in my collection or even a $500 gold certificate. Looking forward to your next currency video.
Thanks Tyler. Yeah the $50 and $100 ate up a good portion of my yearly budgets and it took about 5 years. And yes, the $500 Gold Cert! I don’t even have a FRN! Thanks for the comments.
Love your videos. I have a few Gold notes, along with a MS25 $10,000 1900 gold note.
Thank you and WOW! One of the lucky few to have the 1900 GC - very nice and I'm jealous.
Cool!
The gold color on the back is beautiful
Stunning!
Great content! Keep it up!
Thank you and thanks for the comment