The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-03
j. s. GOLD HOLDINGS
NOW $S,226,OO0,0OO
40 Per Cent. of World Stock
Held Here and Amount Is
Growing Rapidly.
YELLOW METAL TABOO
Public Lost Liking for 1t
After 1t Was Withdrawn
to Build War Reserve.
is BECOMING A BURDEN
Federal Reserve Banks Have
More Than Two Billions Of
1t in Their Vaults.
IS BECOMING A BURDEN

Special Despatch to THE NEW YonR HnaAlD.
New York I!er IA Bureau.
Washington. =. G., sept. e.
Gold coin and &C ,drrency which
disappeared from circulation in the
United States during the war because
of Treasury orders calling in all OF
the gold as a war reserve, have never
regained their popularity, though re-
strictions have been withdrawn for
considerably more than a year
The time was when gold coin was
a popular gift in the United States.
particularly at Christmas time. and
there was considerable gold in circula-
ton or held as mementos in this coun-
try. This has changed, however.
Though the United States Treasury
will now pass out gold coin on de-
mand. and the banks will give it to
their customers if they have it, the
demand has been so slight that the
Treasury is receiving but few calls.
Small amounts of gold passed out
last Christmas. and in recent months
generally found its way into the banks
and then back to the Treasury vaults.
which hold at least one-third OF the
entire worlds supply of the precious
metal. Folks getting coin nowadays
do not seem to want to run the risk or
loss. and the banks in many instances
do not care to handle this coin.
Yelowback bills. familiar not less
than half a decade ago. have achieved
almost complete oblivion. They were
withdrawn from circulation at the be-
ginning of the war because they pro-
vided for payment by the Treasury in
gold on demand. The Treasury asked
the banks to turn them in and take out
Federal Reserve and silver certificates.
All yellowbacks. either tens or twenties,
were gold certificates.
In the last few months some yellow
backs have been getting in circulation
In the East. but they are old notes
which had been held in bank vaults at
the behest of the Treasury.
When the United States entered the
war Treasury Federal Reserve and
other officials felt the necessity with
the expansion of our credit situation
of building up a maximum gold reserve.
They feared that some folks remember
ing civil war days might want to con-
vert their currency into gold. so all
of the gold in circulation. together
with the yeIlowbacks and all other gold
certificates. were quietly withdrawn and
the gold and certificates lodged in
United States Treasury or Federal Re-
serve Bank vaults. The people scarcely
missed them.
After the armistice, when reconstruc-
ton started in earnest, this country
found itself with huge gold reserve
that was a burden. All restrictions
upon its withdrawal and upon it's ex-
portation were withdrawn. but the total
held In this country. nearly all OF which
stantly.
Most Of the new gold produced In the
world will find It's way to the United
States as long as exchange conditions
continue uncertain.
Gold reserves of the twelve Federal
Reserve banks now amount to Seal
O61 900. exclusive Of the Treasury's gold
holdings. This sum Is sufficient to back
up all demands of the public for gold.
but the puka.o is not demanding gold.