§5119 — Title 31 Money and Finance | U.S. Code

Summary

The Secretary of the Treasury must not trade U.S. currency for gold, unless the President approves rules allowing it. The Secretary must, however, cash in gold certificates held by Federal Reserve banks when needed to keep different types of U.S. money equally valuable. If gold redemption is allowed, payment must be made in U.S. gold bullion stamped by a U.S. mint or assay office and equal in value to the currency at that time. Certain old kinds of U.S. money are treated as non‑interest public debts. These include gold certificates issued before January 30, 1934; silver certificates; notes under the Act of July 14, 1890; some Old Series Federal Reserve notes; and various 1860s U.S. currency notes. The Secretary must redeem those from the Treasury’s general fund when presented, then cancel and destroy them. The Secretary may also decide amounts of some old notes (including Federal Reserve and national bank notes issued before July 1, 1929 and the types above) are lost or destroyed, reduce the reported outstanding amount, and credit the proper account. The Secretary may keep one example of each design and issue for a historical collection and move it to a special account.

Title 31, §5119

Money and Finance — Source: USLM XML via OLRC

(a)Except to the extent authorized in regulations the Secretary of the Treasury prescribes with the approval of the President, the Secretary may not redeem United States currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) in gold. However, the Secretary shall redeem gold certificates owned by the Federal reserve banks at times and in amounts the Secretary decides are necessary to maintain the equal purchasing power of each kind of United States currency. When redemption in gold is authorized, the redemption may be made only in gold bullion bearing the stamp of a United States mint or assay office in an amount equal at the time of redemption to the currency presented for redemption.

(b)(1)Except as provided in subsection (c)(1) of this section, the following are public debts bearing no interest:

(A)gold certificates issued before January 30, 1934.

(B)silver certificates.

(C)notes issued under the Act of July 14, 1890 (ch. 708, 26 Stat. 289).

(D)Federal Reserve notes for which payment was made under section 4 of the Old Series Currency Adjustment Act.

(E)United States currency notes, including those issued under section 1 of the Act of February 25, 1862 (ch. 33, 12 Stat. 345), the Act of July 11, 1862 (ch. 142, 12 Stat. 532), the resolution of January 17, 1863 (P.R. 9; 12 Stat. 822), section 2 of the Act of March 3, 1863 (ch. 73, 12 Stat. 710), or section 5115 of this title.

(2)The Secretary shall—

(A)redeem any currency described in paragraph (1) from the general fund of the Treasury upon presentment to the Secretary; and

(B)cancel and destroy such currency upon redemption.

(c)(1)The Secretary may determine the amount of the following United States currency that will not be presented for redemption because the currency has been destroyed or irretrievably lost:

(A)circulating notes of Federal reserve banks and national banks issued before July 1, 1929, for which the United States Government has assumed liability.

(B)outstanding currency referred to in subsection (b)(1) of this section.

(2)When the Secretary makes a determination under this subsection, the Secretary shall reduce the amount of that currency outstanding by the amount the Secretary determines will not be redeemed and credit the appropriate receipt account.

(d)To provide a historical collection of United States currency, the Secretary may withhold from cancellation and destruction and transfer to a special account one piece of each design, issue, or series of each denomination of each kind of currency (including circulating notes of Federal reserve banks and national banks) after redemption. The Secretary may make appropriate entries in Treasury accounts because of the transfers.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5119(a)31:408a(less last proviso).Jan. 30, 1934, ch. 6, §§ 6(less last proviso), 11, 15(1st sentence words between 2d and 3d semicolons), 48 Stat. 340, 342, 344. 31:444(1st sentence words between 2d and 3d semicolons). 31:822b. 5119(b)(1)31:405a–3.June 24, 1967, Pub. L. 90–29, §§ 1, 2, 81 Stat. 77. 31:911.June 30, 1961, Pub. L. 87–66, §§ 2, 5, 6, 9, 10, 75 Stat. 146, 147. 31:915(a), (b). 5119(b)(2)31:404.May 31, 1878, ch. 146, 20 Stat. 87; June 30, 1961, Pub. L. 87–66, § 7, 75 Stat. 147. 31:420.R.S. § 3580. 31:914. 31:916. 5119(c)(1)31:915(c)(words before last comma). 5119(c)(2)31:405a–2. 31:915(c)(words after last comma). 5119(d)31:917. In subsection (a), the words “Secretary may not redeem” are substituted for “no . . . shall be redeemed” in 31:408a(less last proviso) because of the source provisions restated in section 321 of the revised title. The words “United States currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks)” are substituted for “currency of the United States” and the text of 31:444(1st sentence words between 2d and 3d semicolons) for consistency with section 5103 of this title and to eliminate unnecessary words. In subsection (b)(1), before clause (A), the words “upon completion of the transfers and credits authorized and directed by section 912 of this title” in 31:915 and “and the amount of the payment credited as a public debt receipt in accordance with such section” are omitted as executed. In clause (B), the text of 31:405a–3(last sentence) and 31:915(a)(4) is consolidated. The text of 31:405a–3(1st sentence) is omitted as executed. In clauses (C) and (E), the citations in parentheses are included only for information purposes. In subsection (b)(2), the words “cancel and destroy” are substituted for “retired” in 31:914 for consistency in the revised section. The words “paragraph (1) of this subsection” are substituted for “Any currency the funds for the redemption or security of which have been transferred pursuant to the provisions of section 912 of this title, and any Federal Reserve notes as to which payment has been made under section 913 of this title” because of the restatement. The words “presented to the Secretary” are substituted for “presentation at the Treasury” because of the source provisions restated in section 321(c) of the revised title. The text of 31:916 is omitted as unnecessary because of the restatement. The text of 31:404 and 31:420 is omitted as superseded by the source provisions restated in this subsection and subsection (c). The words “All acts and parts of acts in conflict herewith are hereby repealed” in the Act of May 31, 1878 (ch. 146, 20 Stat. 87), are omitted as executed. In subsection (c)(2), the words “When the Secretary makes a determination under this subsection” are added because of the restatement. The words “on the books of the Treasury” are omitted as surplus. The text of 31:405(e)(2)(1st sentence) is omitted as superseded by the source provisions restated in subsection (b). In subsection (d), the word “paper” is omitted as surplus. The words “(including circulating notes of Federal Reserve banks and national banks)” are substituted for “including bank notes” for consistency in the section. The words “heretofore or hereafter issued” are omitted as surplus.

Editorial Notes

References in Text

Act of

July 14, 1890, ch. 708, 26 Stat. 289, referred to in subsec. (b)(1)(C), which was known as the Sherman Purchase of Silver Act of

July 14, 1890, was classified to section 408, 410, 412, and 453 of former Title 31, and section 122 and 145 of Title 12, Banks and Banking, and was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1069. section 4 of the Old Series Currency Adjustment Act, referred to in subsec. (b)(1)(D), is section 4 of Pub. L. 87–66,

June 30, 1961, 75 Stat. 146, which was classified to section 913 of former Title 31, and was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1079. Acts

February 25, 1862,

July 11, 1862, and

March 3, 1863, and resolution

January 17, 1863, referred to in subsec. (b)(1)(E), are acts Feb. 25, 1862, ch. 33, 12 Stat. 345,

July 11, 1862, ch. 142, 12 Stat. 532, and Mar. 3, 1863, ch. 73, 12 Stat. 709, and resolution Jan. 17, 1863, 12 Stat. 822, respectively, which are not classified to the Code.

Amendments

1994—Subsec. (b)(2). Pub. L. 103–325 inserted concluding provisions. 1992—Subsec. (b)(2). Pub. L. 102–390 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary shall redeem from the general fund of the Treasury and cancel and destroy currency referred to in paragraph (1) of this subsection when the currency is presented to the Secretary.”

§5119 Redemption and cancellation of currency