Tuesday, 18 March 2008

12 Types of US Paper Money Banknotes - Part 2

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Ok so from the previous article 12 Types of US Paper Money Banknotes - Part1 it was obvious that the US had much more to offer than just the now famous US dollar notes. So what other goodies do they have in the basket?

7. Fractional Currency:
These were small value currency notes issued by the government during and after the American Civil War until 1876, due to the hoarding of gold, silver and other precious metals. The notes were redeemable at the US Post office for their face value of US postal stamps. These notes were issued in denominations of 3, 5, 10,15, 25, 5o cents.

8. The Refunding Certificate
The refunding certificates were a form of interest bearing notes issued by the United States government,in denominations of $10 only, it marks the end of coin hoarding and the reemergence of public confidence in coin money.

9. The Silver Certificate
These were paper currency issued by the government of the United States of America, in various US$ denominations, which matched the value of silver, and was redeemable for the same. The earlier issues of silver certificates had their seal and serial numbers in red, brown and blue, but for the 1899 series of $1,$2, and $5 they were permanently printed in blue. The redemption of silver certificates was halted in 1964 due to the rising value of silver which meant that the silver coin was more valuable than the paper money currency.

10. The National Bank Notes
These were the notes known as the "hometown" paper currency, banknotes issued by banks chartered by the United States government, backed by United States bonds deposited by the banks to the United States Treasury. They are similar to the Federal Reserve Notes except that it has the name of the issuing bank, town and state on the note and is signed by the banks president and cashier. They were retired as a currency type by the government in 1930 during the great depression, but have become a favorite collectors item.

11. The United States Notes
These are the among the first notes issued as legal tender under 1862 Legal Tender Act. The United States Notes were issued directly by the United States Department of the Treasury rather than by the Federal Reserve, it is a bill of credit issued to stimulate the economy and one of the appealing aspects of this type of note was that the government did not have to pay any interest on the notes, which was the case with the Federal reserve notes.
These bills were issued in denominations of $1,$2, $5, $10, $20, $50, $100, $500, $1000, $1000, $5ooo, $10,000.

12. The Federal Reserve Notes
This was another United States banknote issued by individual Federal Reserve Banks they were fashioned after the National bank notes and issued as Large notes in 1914 and as small notes in 1933. The small notes were issued for a specific purpose and were in use for only 2 years, as a lot of National banks were failing the public started hoarding cash, once people started to build confidence in paper money the money was withdrawn.

These notes and the previous 6 US Paper Money Banknotes make US currency an interesting collection.

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