Google
Tuesday 
April 23, 2024 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
INCOME TAX: A tax on income, including wages, rent, interest, profit, and (usually) transfer payments. The income tax system in the United States includes both a personal income tax and corporate income tax. In general, the U. S. income tax is progressive, but through a number of deductions and other loopholes, it's less so in practice that on paper.

Visit the GLOSS*arama


GOLD CERTIFICATES:

Paper currency issued and authorized by the U.S. Department of the Treasury that is, in principle, backed up by, and exchangeable for, an equivalent value of gold. Gold certificates were in circulation as a medium of exchange for the U.S. economy during two periods, 1865 to 1922 and 1928 to 1934. A similar form of paper currency is silver certificates.
Gold certificates are a type of currency that is, in principle, tied to a given quantity of gold safely stockpiled by government, it can be, in principle, exchanged for gold. The certificates merely represent, or give title to, the actual gold. As such, the gold certificates are as good as the gold itself as a medium of exchange. If the gold functions as the medium of exchange, then so too does the gold certificates.

From Commodity to Fiat

Gold certificates, along with silver certificates, represent a transition between commodity money and fiat money. With commodity money the silver or gold metal is used as the actual medium of exchange. This money has value in exchange AND value in use. With fiat money, however, currency has value in exchange but little or no value in use.

Gold certificates, that is the paper currency itself, has little or no value in use, but it can be, in principle, exchanged for the gold that DOES have value in use. In theory, ideally, in principle, the gold with its value in use is the ultimate medium of exchange. However, in practice, in reality, the paper certificates with little or no direct value in use are the medium.

If the general public never exchanges the paper certificates for the metal, if the public loses track of how much metal is actually stockpiled to back the certificates, then the certificates need not be backed fully by the metal. This moves the certificates several steps closer to fiat money.

Two Sets of Gold

Gold certificates were issued and circulated during two periods, 1865 to 1922 and 1928 to 1934.
  • The first period, 1865 to 1922, produced large-sized bills (about 25 percent larger than modern currency) in nine denominations ($10, $20, $50, $100, $500, $1,000, $5,000, and $10,000). The 1907 $10 gold certificate contained a gold Roman numeral "X" on the face, giving rise to the "sawbuck" nickname for the ten-dollar bill. The 1906 $20 gold certificate had "XX" and generated the "double sawbuck" nickname.

  • The second period, 1928 to 1934, produced small-sized bills that came a lot closer to the look of modern currency (at least before Federal Reserve notes were redesigned in 1996). This more recent set of gold certificates came in nine denominations ($10, $20, $50, $100, $500, $1,000, $5,000, $10,000, $50,000, $100,000). Because the ownership of gold by the public was outlawed in 1933, after than time gold certificates only circulated among Federal Reserve Banks.

<= GEOGRAPHIC MOBILITYGOLDSMITH BANKING =>


Recommended Citation:

GOLD CERTIFICATES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 23, 2024].


Check Out These Related Terms...

     | currency | silver certificates | Federal Reserve notes | monetary aggregates | M1 | M2 | M3 | L | checkable deposits | near monies | plastic money |


Or For A Little Background...

     | money | money functions | money characteristics | fiat money | commodity money | medium of exchange | liquidity |


And For Further Study...

     | money creation | fractional-reserve banking | banking | Federal Reserve System | monetary economics | monetary base | monetary policy | debit card | monetary economics |


Related Websites (Will Open in New Window)...

     | Federal Reserve System | Federal Reserve Education | U.S. Department of the Treasury | The Currency Gallery | Bureau of Engraving and Printing |


Search Again?

Back to the WEB*pedia


APLS

RED AGGRESSERINE
[What's This?]

Today, you are likely to spend a great deal of time browsing about a thrift store trying to buy either a coffee cup commemorating the first day of spring or a printer that works with your stockpile of ink cartridges. Be on the lookout for slightly overweight pizza delivery guys.
Your Complete Scope

This isn't me! What am I?

The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
"You have to find something that you love enough to be able to take risks, jump over the hurdles and break through the brick walls that are always going to be placed in front of you. If you don't have that kind of feeling for what it is you're doing, you'll stop at the first giant hurdle. "

-- George Lucas

T-BILL
Treasury Bill
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2024 AmosWEB*LLC
Send comments or questions to: WebMaster