PRIA, Government Policy, Made Personal

Summary

All ownership and claims that the Board of Governors of the Federal Reserve System, any Federal reserve bank, or a Federal reserve agent had in gold become the property of the United States and are held by the Treasury. The Treasury pays for that gold by crediting equal dollar amounts to special Treasury accounts under the Federal Reserve Act. Gold not already in Government hands must be kept in custody and delivered only when the Secretary of the Treasury orders it. The Federal Reserve must give instructions and take steps so the gold is held and delivered as required. The Secretary of the Treasury must issue gold certificates for the transferred gold and may issue certificates for other gold in the Treasury. The Secretary sets the certificate forms and denominations. The total certificates cannot be more than the value of the gold held for them, using a rate of 42 and two-ninths dollars a fine troy ounce. For certificates issued after January 29, 1934, the Secretary must keep matching gold in the Treasury as security. With the President’s approval, the Secretary can make rules to carry out these duties.

Title 31, §5117

Money and Finance, Source: USLM XML via OLRC

(a)All right, title, and interest, and every claim of the Board of Governors of the Federal Reserve System, a Federal reserve bank, and a Federal reserve agent, in and to gold is transferred to and vests in the United States Government to be held in the Treasury. Payment for the transferred gold is made by crediting equivalent amounts in dollars in accounts established in the Treasury under the 15th paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 467). Gold not in the possession of the Government shall be held in custody for the Government and delivered on the order of the Secretary of the Treasury. The Board of Governors, Federal reserve banks, and Federal reserve agents shall give instructions and take action necessary to ensure that the gold is so held and delivered.

(b)The Secretary shall issue gold certificates against gold transferred under subsection (a) of this section. The Secretary may issue gold certificates against other gold held in the Treasury. The Secretary may prescribe the form and denominations of the certificates. The amount of outstanding certificates may be not more than the value (for the purpose of issuing those certificates, of 42 and two-ninths dollars a fine troy ounce) of the gold held against gold certificates. The Secretary shall hold gold in the Treasury equal to the required dollar amount as security for gold certificates issued after January 29, 1934.

(c)With the approval of the President, the Secretary may prescribe regulations the Secretary considers necessary to carry out this section.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5117(a)31:441(1st, last sentences).Jan. 30, 1934, ch. 6, §§ 2(a), 11, 48 Stat. 337, 342. 5117(b)31:405b.Jan. 30, 1934, ch. 6, § 14(c), 48 Stat. 344; Mar. 18, 1968, Pub. L. 90–269, § 12, 82 Stat. 51; restated Oct. 19, 1976, Pub. L. 94–564, § 8, 90 Stat. 2661. 31:408a(last proviso).Jan. 30, 1934, ch. 6, § 6(last proviso), 48 Stat. 340; Mar. 18, 1968, Pub. L. 90–269, § 8, 82 Stat. 50. 31:441(2d sentence). 5117(c)31:822b. In subsection (a), the words “On January 30, 1934” are omitted as executed. The word “gold” is substituted for “gold coin and gold bullion” for consistency and to omit unnecessary words. The word “transferred” is substituted for “pass” for consistency in the subsection. The words “to be held in the Treasury” are added for consistency with the source provisions restated in subsection (b) of the revised section. In subsection (b), the first sentence is substituted for 31:441(2d sentence) for consistency. The word “issued” in 31:405b is omitted as being included in “outstanding”. The words “of 42 and two-ninths dollars a fine troy ounce)” are substituted for “at the legal standard provided in section 449 of this title on October 19, 1976” because that was the legal standard in that section on that date. The text of 31:449 was repealed by section 6 of the Bretton Woods Agreements Act. The words “The Secretary shall hold . . . in the Treasury . . . as security” are substituted for “security . . . shall be maintained” in 31:408a(last proviso) because of the source provisions restated in section 321 of the revised title. The words “gold certificates issued after January 29, 1934” are substituted for “gold certificates (including the gold certificates held in the Treasury for credits payable therein)” for clarity and because of section 5118(c)(1)(A) of the revised title. In subsection (c), the word “

Regulations

” is substituted for “

Rules and Regulations

”, and the word “necessary” is substituted for “necessary or proper”, to eliminate unnecessary words.

§5117 Transferring Gold and Gold Certificates