Page:Stabilizing the dollar, Fisher, 1920.djvu/264

210 "the United States of America will pay the bearer on demand $100 in standard gold bars of not less than 5 ounces each and any smaller balance in any lawful money."

Upon such substitution such gold coin certificates shall be destroyed.

(To accelerate said correction at the start especially through the Federal Reserve and National Banks)

Provided: That the United States, under rules and regulations to be prescribed by the Secretary of the Treasury, shall receive all gold coin certificates offered to it and pay for the same in lawful money at the rate of ten dollars and one cent of lawful money for every ten dollars of gold certificates so offered from the date when their issue ceases to December 31, 1920, inclusive, and at the rate of one dollar of lawful money for every dollar of such certificates so offered after December 31, 1920.

(Government Gold "Reserve" and "Surplus")

Sec. 10. That the Secretary of the Treasury shall divide all the gold against which gold coin certificates and gold bullion dollar certificates are outstanding at 3 January 1, 1921, into two parts, one part to be known as the "reserve" against outstanding gold bullion dollar certificates and equal to 50% of the value of the gold certificates then outstanding and the remaining part to be known as the "surplus," in excess of said reserve.

This remainder or "surplus" shall be forthwith transferred to the general fund of the Treasury as the initial profits of the new system.

The "reserve" shall be maintained daily, as nearly as possible at 50% of the gold bullion dollar certificates outstanding from time to time.

If, on any date, the reserve falls short of 50% it is to be restored by withdrawing from circulation and cancelling gold bullion dollar certificates.