Federal Reserve Bank Note

Federal Reserve Bank Note
Name	Federal Reserve Bank Note
Using countries	United States
Subunit ratio 1	1/100
Subunit name 1	Cent
Frequently used banknotes	$1, $2, $5, $10, $20, $50, $100
Rarely used banknotes	$500, $1000, $5000, $10000
Issuing authority	Individual Federal Reserve Banks
Printer	Bureau of Engraving and Printing
Obsolete date	Last issued 1971

Federal Reserve Bank Note. Federal Reserve Bank Notes were a form of paper currency issued directly by the individual Federal Reserve Banks in the early decades of the Federal Reserve System. They circulated alongside United States Notes and the now-familiar Federal Reserve Note, from which they are legally distinct. Their production was largely a transitional measure, and they were last issued in the early 1970s, remaining legal tender but no longer printed.

History

The authorization for Federal Reserve Bank Notes stemmed from the original Federal Reserve Act of 1913, which granted each of the twelve regional Federal Reserve Banks the power to issue currency. Early series, such as the 1915 and 1918 issues, were released to help supplant the various National Bank Notes issued by private banks under the National Banking Acts. Their issuance saw a significant resurgence during the Great Depression following the Banking Act of 1933, as a temporary emergency measure to bolster liquidity. A final small series was printed in the early 1990s for the Federal Reserve Bank of San Francisco as part of a contingency plan, but these were never released for public circulation.

Design and features

The design of Federal Reserve Bank Notes closely mirrored contemporary United States Notes and Silver Certificates, sharing similar portraits, vignettes, and Treasury seal designs. The most critical distinguishing feature was the black Treasury seal coupled with the wording "FEDERAL RESERVE BANK NOTE" across the top. Each note prominently displayed the name and location of the issuing Federal Reserve Bank, such as the Federal Reserve Bank of New York or the Federal Reserve Bank of Chicago. Unlike Federal Reserve Notes, they did not feature a distinctive green seal and serial numbers until the 1929 series, which adopted standardized small-size designs following the Series of 1928.

Issuance and distribution

Issuance was decentralized, with each Federal Reserve Bank ordering notes from the Bureau of Engraving and Printing to meet the needs of its district. The notes were put into circulation through member banks within that district, such as those in the territory of the Federal Reserve Bank of Atlanta or the Federal Reserve Bank of Dallas. Distribution was not uniform nationally, making notes from some banks, like the Federal Reserve Bank of Minneapolis, scarcer in circulation than those from major financial centers. The Board of Governors of the Federal Reserve System oversaw the broader policy but did not directly control each bank's issuance volumes.

Distinction from Federal Reserve Note

The key legal distinction lies in the liability; Federal Reserve Bank Notes were direct obligations of the issuing Federal Reserve Bank, whereas Federal Reserve Notes are obligations of the entire Federal Reserve System and the United States Treasury. Structurally, Federal Reserve Notes feature a green seal and are issued by the Federal Reserve Board for circulation nationwide without a specific bank imprint. This fundamental difference, rooted in the Federal Reserve Act, made Federal Reserve Bank Notes a unique hybrid between a central bank and a regional bank obligation before the modern Federal Reserve Note became fully dominant.

Legal status and usage

All Federal Reserve Bank Notes remain legal tender for all debts, public and private, pursuant to the Legal Tender Act and subsequent rulings by the United States Department of the Treasury. They could be used interchangeably with other currency forms but were typically removed from circulation via the banking system as they were deposited. The Federal Reserve Banks were obligated to redeem them, and today the Bureau of the Fiscal Service handles redemption of any unfit or rare specimens. Their practical usage ceased decades ago, superseded by the efficiency and uniformity of the Federal Reserve Note.

Collectibility and value

These notes are highly sought after by numismatists, with value driven by the issuing Federal Reserve Bank, denomination, series year, and condition. Notes from rarer districts like the Federal Reserve Bank of Kansas City or high-denomination examples command significant premiums. The 1933 series, particularly the $10 note, is especially prized. Grading by services like PCGS or NGC significantly impacts market price, with uncirculated examples from the 1918 or 1929 series being auction highlights at firms like Stack's Bowers and Heritage Auctions.

Category:Currencies of the United States Category:Federal Reserve System Category:Obsolete currencies