What Are Gold Securities?

Gold securities, also translated as "gold coupons" or "gold coupons". Securities issued by the Treasury in preparation for 100% gold after the end of the American Civil War. When the United States established the Federal Reserve System in 1913, the United States Treasury used this securities to exchange dollars with the Federal Reserve Banks, and opened deposit accounts with the Federal Reserve Banks. The Federal Reserve Bank uses its holdings of gold securities as a guarantee for the issuance of Federal Reserve Notes and for the Federal Reserve Banks to settle their debts with each other. Before 1933, it was freely convertible into gold and was once on the market as a currency of the United States. After April 1933 began to gradually recover. In 1968 gold securities no longer served as a guarantee for the issue of Federal Reserve Notes. ^[1]