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By Geroge S. Cuhaj and William Brandimore
March 29, 2011
Other News & Articles
* Collecting Small Size Currency
* Trust Gold or Trust Stats - Your Choice
* Silver Gaining Rapidly on Gold
The following is an excerpt from Standard Catalog of United States Paper Money by Geroge S. Cuhaj and William Brandimore.
United States Notes
When the switch to the smaller, current size U.S. currency was made in July, 1929, the United States Notes (Legal Tender Notes), bearing red Treasury, seals and serial numbers, were included, although denominations were pared back to only $1, $2, $5 and $100 notes.
The Red Seal $1 is especially popular with collectors in that it was issued only in one series (1928) and in fewer than two million notes. The 1928 $1 Legal Tenders were principally released in Puerto Rico more than 20 years after the notes had been printed. Star notes of the type are especially sought-after and command a strong premium, even in circulated grades.
The small size U.S. Note remained current in the $2 denomination until July, 1965, and in the $5 value until November, 1967. The last issue of Red Seal $100s was in 1968.
The obligation for small size U.S. Notes began in Series 1928 as: “This note is a legal tender at its face value for all debts public and private except duties on imports and interest on the public debt.” Under terms of the Act of May 12, 1933, the clause was amended to read: “This note is a legal tender at its face value for all debts public and private.” Beginning in Series 1963, it was changed to: “This note is legal tender for all debts, public and private.”
Gold Certificates
With the rest of the U.S. currency, the change to smaller notes in 1929 affected the Gold Certificates. Most noticeably, the type lost its distinguishing gold-colored back design as the general configuration of the notes was standardized in all types. The seal and serial numbers continued in gold ink. Among the small size notes, Gold Certificate denominations continued from $10-$10,000, nominally intended for circulation, and even included the $100,000 Gold Certificate of Series 1934, for use in fiscal channels.
Like the $100, $1,000 and $10,000 gold notes of Series 1934, the $100,000s were never released to general circulation and may not be legally held by collectors.
Likewise, Series 1928A Gold Certificates were printed in denominations of $10, 20 and $100, though never released.
The small size gold notes were a short series, cut off by the Gold Reserve Act of 1933, which required the surrender of all Gold Certificates (a restriction which was lifted in 1964). For practical purposes the collectibility of the type is thus limited to the Series 1928 notes in the $10, $20, $50 and $100 denominations, which are currently in strong demand in uncirculated condition. Star notes are especially in demand.
Silver Certificates
From the 1929 release date of the small size U.S. currency issues, until Silver Certificate legislation was abolished by a Congressional Act on June 4, 1963, small size Silver Certificates, distinguished by their blue Treasury seal and serial number, were issued in denominations of $1, $5, and $10.
The earliest small size silver notes were redeemable for “One Silver Dollar,” (or the appropriate number) as had been the large size issues. A change in the redemption clause, however, was made with the Silver Purchase Act of 1934, which specified the certificates be redeemable for silver dollars or silver bullion. At that time the wording on the notes was changed to read: “One Dollar in Silver.” In March, 1964, by order of the Secretary of the Treasury, redemption in silver dollars was halted, and on June 24, 1968, redemption in silver bullion was also discontinued. Like all U.S. currency issued since 1861, Silver Certificates retain their status as legal tender, though today they are convertible only into current U.S. Federal Reserve Notes.
Federal Reserve Notes
Virtually the only type of U.S. paper money encountered in circulation today is the Federal Reserve Note, in denominations of $1-$100. Beginning with the Series 1990 $100 and $50 notes new security features have been added, including a metallic strip and micro-printing. A second printing plant was opened at Fort Worth, Texas in 1990, with the notes identified by a “FW” prefix on the face plate check number. A full redesign of the $5, $10, $20, $50, and $100 notes occured starting in 1995 series with the introduction of the off-centered “big head” notes. With the 2004 series color began to be added to the $10, $20 and $50 notes.
Authorization continued in the small size period for FRNs to be issued in denominations from $5-$10,000. With the demise of the Silver Certificate $1 bill in 1963, that denomination was moved into the FRN realm. The Bicentennial in 1976 led to the re-introduction of the $2 note, which had last been issued as a United States Note in 1966, in the guise of a green-seal Federal Reserve Note.
No Federal Reserve Note of denomination higher than $100 has been printed since 1945, and since 1969 all notes of $500 and higher face value have been actively retired as they are turned into the Federal Reserve System.
Federal Reserve Bank Notes
The small size Federal Reserve Bank Notes were an emergency currency issue authorized March 9, 1933, to inject cash into the economy to combat heavy withdrawals from the Federal Reserve System in the ?rst months of that year.
FRBNs in the small size were printed on currency stock prepared for the regular Series 1929 National Currency. Changes consisted of overprinting several elements.
The President (and sometimes Cashier) title at the bottom of the notes was obliterated, and replaced with Governor, and the appropriate signatures of those Federal Reserve Bank officers engraved. There are, however, three exceptions to the Cashier-Governor combination on the small size FRBNs. On the notes of the Chicago bank, the signatures are those of the Assistant Deputy Governor and Governor; for New York, the signature of the Deputy Governor replaces that of the Cashier, and in the St. Louis district, the Controller signed instead of the Cashier.
In the places where the National Bank’s charter number would have been imprinted, the proper district letter of the issuing bank appears in heavy black block type. At top of the note, near the obligation, a line was added to read: “or by like deposit of other securities.”
Like the regular National Bank Notes of the small size era, the Treasury seal and serial number on the Federal Reserve Bank Notes are in brown ink.
Collector demand for this type has been almost non-existent until recent years. Now, however, the true rarity of some banks and denominations ($5-$100), especially in star notes, is being appreciated.
March 29, 2011
Other News & Articles
* Collecting Small Size Currency
* Trust Gold or Trust Stats - Your Choice
* Silver Gaining Rapidly on Gold
The following is an excerpt from Standard Catalog of United States Paper Money by Geroge S. Cuhaj and William Brandimore.
United States Notes
When the switch to the smaller, current size U.S. currency was made in July, 1929, the United States Notes (Legal Tender Notes), bearing red Treasury, seals and serial numbers, were included, although denominations were pared back to only $1, $2, $5 and $100 notes.
The Red Seal $1 is especially popular with collectors in that it was issued only in one series (1928) and in fewer than two million notes. The 1928 $1 Legal Tenders were principally released in Puerto Rico more than 20 years after the notes had been printed. Star notes of the type are especially sought-after and command a strong premium, even in circulated grades.
The small size U.S. Note remained current in the $2 denomination until July, 1965, and in the $5 value until November, 1967. The last issue of Red Seal $100s was in 1968.
The obligation for small size U.S. Notes began in Series 1928 as: “This note is a legal tender at its face value for all debts public and private except duties on imports and interest on the public debt.” Under terms of the Act of May 12, 1933, the clause was amended to read: “This note is a legal tender at its face value for all debts public and private.” Beginning in Series 1963, it was changed to: “This note is legal tender for all debts, public and private.”
Gold Certificates
With the rest of the U.S. currency, the change to smaller notes in 1929 affected the Gold Certificates. Most noticeably, the type lost its distinguishing gold-colored back design as the general configuration of the notes was standardized in all types. The seal and serial numbers continued in gold ink. Among the small size notes, Gold Certificate denominations continued from $10-$10,000, nominally intended for circulation, and even included the $100,000 Gold Certificate of Series 1934, for use in fiscal channels.
Like the $100, $1,000 and $10,000 gold notes of Series 1934, the $100,000s were never released to general circulation and may not be legally held by collectors.
Likewise, Series 1928A Gold Certificates were printed in denominations of $10, 20 and $100, though never released.
The small size gold notes were a short series, cut off by the Gold Reserve Act of 1933, which required the surrender of all Gold Certificates (a restriction which was lifted in 1964). For practical purposes the collectibility of the type is thus limited to the Series 1928 notes in the $10, $20, $50 and $100 denominations, which are currently in strong demand in uncirculated condition. Star notes are especially in demand.
Silver Certificates
From the 1929 release date of the small size U.S. currency issues, until Silver Certificate legislation was abolished by a Congressional Act on June 4, 1963, small size Silver Certificates, distinguished by their blue Treasury seal and serial number, were issued in denominations of $1, $5, and $10.
The earliest small size silver notes were redeemable for “One Silver Dollar,” (or the appropriate number) as had been the large size issues. A change in the redemption clause, however, was made with the Silver Purchase Act of 1934, which specified the certificates be redeemable for silver dollars or silver bullion. At that time the wording on the notes was changed to read: “One Dollar in Silver.” In March, 1964, by order of the Secretary of the Treasury, redemption in silver dollars was halted, and on June 24, 1968, redemption in silver bullion was also discontinued. Like all U.S. currency issued since 1861, Silver Certificates retain their status as legal tender, though today they are convertible only into current U.S. Federal Reserve Notes.
Federal Reserve Notes
Virtually the only type of U.S. paper money encountered in circulation today is the Federal Reserve Note, in denominations of $1-$100. Beginning with the Series 1990 $100 and $50 notes new security features have been added, including a metallic strip and micro-printing. A second printing plant was opened at Fort Worth, Texas in 1990, with the notes identified by a “FW” prefix on the face plate check number. A full redesign of the $5, $10, $20, $50, and $100 notes occured starting in 1995 series with the introduction of the off-centered “big head” notes. With the 2004 series color began to be added to the $10, $20 and $50 notes.
Authorization continued in the small size period for FRNs to be issued in denominations from $5-$10,000. With the demise of the Silver Certificate $1 bill in 1963, that denomination was moved into the FRN realm. The Bicentennial in 1976 led to the re-introduction of the $2 note, which had last been issued as a United States Note in 1966, in the guise of a green-seal Federal Reserve Note.
No Federal Reserve Note of denomination higher than $100 has been printed since 1945, and since 1969 all notes of $500 and higher face value have been actively retired as they are turned into the Federal Reserve System.
Federal Reserve Bank Notes
The small size Federal Reserve Bank Notes were an emergency currency issue authorized March 9, 1933, to inject cash into the economy to combat heavy withdrawals from the Federal Reserve System in the ?rst months of that year.
FRBNs in the small size were printed on currency stock prepared for the regular Series 1929 National Currency. Changes consisted of overprinting several elements.
The President (and sometimes Cashier) title at the bottom of the notes was obliterated, and replaced with Governor, and the appropriate signatures of those Federal Reserve Bank officers engraved. There are, however, three exceptions to the Cashier-Governor combination on the small size FRBNs. On the notes of the Chicago bank, the signatures are those of the Assistant Deputy Governor and Governor; for New York, the signature of the Deputy Governor replaces that of the Cashier, and in the St. Louis district, the Controller signed instead of the Cashier.
In the places where the National Bank’s charter number would have been imprinted, the proper district letter of the issuing bank appears in heavy black block type. At top of the note, near the obligation, a line was added to read: “or by like deposit of other securities.”
Like the regular National Bank Notes of the small size era, the Treasury seal and serial number on the Federal Reserve Bank Notes are in brown ink.
Collector demand for this type has been almost non-existent until recent years. Now, however, the true rarity of some banks and denominations ($5-$100), especially in star notes, is being appreciated.
