One is apt to think that the debt of the Government is its outstanding bonds, but this is incorrect, for paper money of all kinds, even although not interest bearing, is figured into the debt statement. Deductions, however, are made for gold held in the Treasury for the redemption of outstanding gold certificates; standard silver dollars held for the redemption of outstanding silver certificates and Treasury notes of 1890; other cash assets held in the Treasury; and for gold coin and gold certificates held by Federal Reserve Banks and Federal Reserve Agents against issues of Federal Reserve notes.

1 The Secretary obtained his authority from §5153 of the Revised Statutes of the United States, reading in part as follows: "The Secretary of the Treasury shall require the associations thus designated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the Government."