New York Central Railroad Company $1,725,000 Gold Bond (Gold bond disclaimer legend stamp)- High Denomination 1938

Beautifully engraved certificate from the New York Central Railroad Company issued in 1938. This historic document was printed by the American Banknote Company and has an ornate border around it. This item has the handwritten signatures of the Company’s Vice-President, and Assistant Secretary, and is over 73 years old.

Gold bond disclaimer legend stamped on front of bond saying the bond is no longer payable in gold (See below).

Gold Bonds

Bonds were Payable in Gold or Gold Coin to give the impression that they were a more secure investment. In reality, they were not more secure since there wasn't any gold set aside as collateral for these bonds.

On April 5, 1933, President Franklin D. Roosevelt signed Presidential Executive Order 6102 which invoked his authority to make it unlawful to own or hold gold coins, gold bullion, or gold certificates. The export of Gold for purposes of payment was also outlawed, except under license from the Treasury.

On January 30, 1934, the Gold Reserve Act became law which made the ownership of gold illegal except for coins of numismatic value. As a result of this law, Bonds were no longer allowed to be Payable in Gold.