ABSTRACT
Of one possible feature of State and local public securities, we have not spoken in this book. That is the matter of payment in gold. Some State and municipal bonds in the United States are, by their terms, payable in United States gold coin of a certain standard of weight and fineness. For many years past, stipulation of gold payment in this country has been of no practical importance. Maintenance of the gold standard in all payments has not been questioned. At several periods in our history, however (notably during the early days of the Republic, during the Civil War and during the days of greenback and free-silver agitation), maintenance of the gold standard was in grave doubt. It was in some doubt at times in the years 1931 and 1932. In view of the unsettled condition of the world as a whole, investors may prefer State and municipal bonds payable in gold.
