The E-Sylum:  Volume 9, Number 34, August 20, 2006, Article 15

GOLD DIGGING

Dick Hanscom of Fairbanks, Alaska writes: "Perhaps someone can explain
the following, from the Federal Reserve Bank of New York, 2004 Annual
Report, page 19:

"a. Gold Certificates

The Secretary of the Treasury is authorized to issue gold certificates
to the Reserve Banks to monetize gold held by the U.S. Treasury. Payment
for the gold certificates by the Reserve Banks is made by crediting
equivalent amounts in dollars into the account established for the U.S.
Treasury.  These gold certificates held by the Reserve Banks are required
to be backed by gold of the U.S. Treasury. The U.S. Treasury may reacquire
the gold certificates at any time and the Reserve Banks must deliver them
to the U.S. Treasury.  At such time, the U.S. Treasury's account is
charged and the Reserve Banks' gold certificate accounts are lowered.
The value of gold for purposes of backing the gold certificates is set
by law at $42 2/9 per fine troy ounce. The Board of Governors allocates
the gold certificates among Reserve Banks once a year based on average
balance of Federal Reserve notes outstanding in each District."

My questions are:
1) Are there actual certificates or is this just a bookkeeping entry?

2) The U.S. Treasury can deplete the nation's gold reserves without
congressional authorization?

3) Where else is gold valued at $42 2/9 per ounce and how do I get
in on this deal?

What a country!!"

  Wayne Homren, Editor

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