Evening star., 1934-02-01
Text of Gold Proclamation
President Fixes Dollar Value at IS 5.2I Grains of
Metal and DEGREES Purchases at $35 Per
Ounce, Less Charges.

fine. This is 59.06 plus per cent of the
former weight OF Is 8-10 grains, nine
tenthS fine, as fixed by section l of the
act Of Congress Of March 4. 1900. The
new gold content of the dollar became
effective Immediately on the signing Of
the proclamation by the President.
Under the gold reserve act of 1884,
signed by the President Tuesday, jan
uary 30. title to the entire stock of
monetary gold in the United States, in
cluding the gold coin and gold bullion
heretofore held by the Federal Reserve
Banks and the claim upon gold in the
Treasury represented by gold certifi-
Gates, is vested in the United States
GoveRment and the profit" from the
reduction Of the gold content Of the
dollar. made effective by today's proc
lamation, accrues to the United States
Treasury. OF this profit" two billion
dollars. under the terms of the gold
reserve act and Of today's proclamation,
constitutes StabiliZation fund under
the direction of the Secretary of the
Treasury. The balance will be covered
into the general fund of the Treasury.
Settlement for the gold coin, bullion
and certificates taken over from the
Federal Reserve banks on Tuesday upon
the approval Of the act was made in the
form of credits set up on the Treasury'S
books. This credit due the Federal Re
serve banks is to be paid in the new
form of gold certificates now in course
Of production by the Bureau OF Engrav-
ing and Printing These certificates
bear on their face the wording:
This is to certify that there is on
deposit in the Treasury Of the United
States of America - dollars in gold,
PAYABLE to bearer on demand as author
ized by law"
They also will carry the standard
legal-tender clause, which is as follows:
This certificate is legal tender in
the amount thereof in payment of all
debts and dues, public and private"
The new gold certificates will be Of
the same size as other currency in cir
culation, and the only difference, other
than the changes in wording noted
above. is that the backs of the new GER
tifcates will. as used to be done. be
printed in yellow ink. The certificates
will be in denominations up to 100000.
S35 Per Ounce Is Fixed.
In his proclamation of today the
President gives notice that he reserves
the right, by virtue of the authority
vested in him, to alter or modify the
present proclamation as the interests of
the United States may seem to require.
The authority by later proclamations to
accomplish other revaluationS of the
dollar in terms Of gold is contained in
the gold reserve act signed on Tuesday.
2 The Secretary of the Treasury,
with the approval of the President, is
sued public announcement that begin
ming February |. 1884, he will buy
through the Federal Reserve Bank of
New York as fiscal agent, for the ac-
count of the United States. any and all
gold delivered to any United States mint
or the assay offices in New York or
Seattle, at the rate Of S35 per fine troy
ounce. less the usual mint charges and
less one-fourth of l per cent for ham
ding charges. Purchases. however. are
subject to compliance with the regula-
tionS issued under the gold reserve act
of 1894
3. The Secretary of the Treasury to-
day promulgated new regulations with
respect to the purchase and sale of gold
by the mints. Under these regulations
the mints are authorized to purchase
gold recovered from natural deposits in
the United States or any place subject
to its jurisdiction. Unmelted scrap gold,
gold imported into the United States
after January 80. 1884, and such other
gold as may be authorized from time to
time by rulings Of the Secretary of the
Treasury No gold, however. may be
purchased which has been held in nom
compliance with previous acts or orders,
or noncompliance with the gold reserve
act of 1884 or these regulations. Affi-
davits as to the source from which the
gold was obtained are required, except
in the case of nuggets or dust of less
than ounces. where a statement under
oath will Suffcie. In the case of i'm
ported gold. the mints may purchase
only that which has been in customs
custody after its arrival in the conti-
mental United States
The price to be paid for gold pur-
chased by the. mints is to be S35 per
troy ounce of fine gold less one-fourth
OF l per cent and less mint charges.
This price may be changed by the Sec
retary OF the Treasury at any time
without notice
The mintS are authorized to sell gold
to persons licensed to acquire it for use
IN the industries, professions or arts, !
but not to sell more than is required for
a three months supply for the pur-
chaser. The price at which gold is to
be sold by the mints will be $35 per |
troy ounce, plus one-fourth of | per
cent. This price also may be changed |
by the Secretary Of the Treasury with |
out notice.