Google
Wednesday 
June 29, 2022 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
TEAMSTERS UNION: The common name for the International Brotherhood of Teamsters, which is one of the largest labor unions in the United States, this was established in 1903 and represents truck drivers, chauffeurs, warehouse workers, and labor in related activities. Their name was taken from the teamsters of the 1800s who guided wagons pulled by teams of horses or other animals. Their modern day counterparts have replaced teams of horses with diesel engines, but their function remains much the same. The Teamsters Union was originally part of the AFL-CIO, but was expelled in 1957 due to corruption among union leaders. The Teamsters Union rejoined the AFL-CIO in 1987.

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, 2000-2022. [Accessed: June 29, 2022].


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

YELLOW CHIPPEROON
[What's This?]

Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway wanting to buy either one of those "hang in there" kitty cat posters or a velvet painting of Elvis Presley. Be on the lookout for letters from the Internal Revenue Service.
Your Complete Scope

This isn't me! What am I?

A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
"Concentration is the secret of strength in politics, in war, in trade, in short in all management of human affairs. "

-- Ralph Waldo Emerson, philosopher, poet

AVT
Ad Valorem Taxes
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 ©2000-2022 AmosWEB*LLC
Send comments or questions to: WebMaster