Associations may be organized under the National Banking Act for the purpose of issuing bank notes payable in gold. (See " Circulation.") Such banks are known as "National Gold Banks," or " Gold Banks," and to take out such circulation must deposit with the Treasurer of the United States, in the same manner as prescribed for the taking out of ordinary circulation, United States bonds bearing interest but payable in gold,1 but not exceeding eighty per cent, of the par value of the bonds deposited. These notes are payable upon presentation at the bank of issue in gold coin of the United States and shall be so redeemable.
1 While the 2% Consols of 1930 are the only bonds which are payable.
While Section 5185 of the United States Revised Statutes, authorizing the organization of "gold banks" has not actually been repealed, practically this result was obtained, however, by the Act of Feb. 14, 1880, authorizing the conversion of " gold banks" into " currency banks." As a result, there are, to-day, no "gold banks" in existence.