The gold procedure is this: When the Treasury buys gold the seller is paid by a cheque drawn against the Treasury's account. When the cheques are cashed the Treasury's deposit account is thus drawn down. Then the Treasury restores its deposits by making a deposit to the gold certificate fund (a claim on the gold) of the Federal Reserve Banks. The Reserve Banks in turn, credit. the Treasury with the proceeds, thus restoring the Treasury's deposits, In a sense, the gold acts as a reserve against deposits in the Reserve Banks. These deposits include reserves against the deposits of member banks, Therefore. the gold is not available to pay off public debt.
Text read from the printed page and cleaned; old type leaves the occasional error.