#Bank note definition serial numbers#
#Bank note definition series#
#Bank note definition free#

This caused tremendous controversy in Congress, as hitherto the Constitution had been interpreted as not granting the government the power to issue a paper currency. Treasury to issue $150 million in notes as legal tender. Recognizing, however, that his proposal would take many months to pass Congress, during early February Spaulding introduced another bill to permit the U.S.

#Bank note definition free#

Spaulding prepared a bill, based on the Free Banking Law of New York, that eventually became the National Banking Act of 1863. Congressman and Buffalo banker Elbridge G. Demand Notes-which were used, among other things, to pay Union soldiers-were unredeemable, and the value of the notes began to deteriorate. The beginning of 1862 found the Union's expenses increasing, and the government was having trouble funding the escalating war. During December 1861, economic conditions deteriorated and a suspension of specie payment caused the government to cease redeeming the Demand Notes as coins. While issued within the legal framework of Treasury Note Debt, the Demand Notes were intended to circulate as currency and were of the same size as banknotes and closely resembled them in appearance. These Demand Notes were paid to creditors directly and used to meet the payroll of soldiers in the field. Chase to raise money via the issuance of $50,000,000 in Treasury Notes payable on demand. The Act of J authorized United States Secretary of the Treasury Salmon P. Also note the Treasury Seal added to the United States Note.ĭuring 1861, the first year of the American Civil War, the expenses incurred by the Union Government much exceeded its limited revenues from taxation, and borrowing was the main vehicle for financing the war. Note the removal of the words 'On Demand' and of the phrase 'Receivable in Payment of All Public Dues'.

Also, while a variety of denominations were issued as United States Notes during the large-size era, only the $1, $2, $5, and $100 denominations were ever issued as small-size notes.Įxisting United States Notes remain valid currency in the United States however, as no United States Notes have been issued since January 1971, they are increasingly rare in circulation and command higher prices than face value as items of numismatic interest.Ĭomparison of a $5 Demand Note (upper image) and an 1862 issue $5 United States Note (lower image).

#Bank note definition serial numbers#

Treasury Seals and serial numbers in place of green ones. United States Notes that were issued in the large-size format, before 1929, differ dramatically in appearance when compared to modern American currency, but those issued in the small-size format, starting 1929, are very similar to contemporary Federal Reserve Notes of the same denominations with the distinction of having red U.S. During the next century, the legislation governing these notes was modified many times and numerous versions were issued by the Treasury. Treasury to pay expenses incurred by the Union during the American Civil War.

They were originally issued directly into circulation by the U.S. This note is a legal tender at its face value for all debts public and private This Note is a Legal Tender for all debts public and private except Duties on Imports and Interest on the Public Debt and is receivable in payment of all loans made to the United States.īy the 1930s, this obligation would eventually be shortened to: During the early 1860s the so-called second obligation on the reverse of the notes stated: Often termed Legal Tender Notes, they were named United States Notes by the First Legal Tender Act, which authorized them as a form of fiat currency. They were known popularly as ' greenbacks', a name inherited from the earlier greenbacks, the Demand Notes, that they replaced in 1862. Having been current for 109 years, they were issued for longer than any other form of U.S.

#Bank note definition series#

Large-sized Series of 1880 United States Notes the $20 note displays Alexander Hamilton and a red scalloped Treasury seal, and the $10 note displays Daniel Webster and a large red spiked Treasury seal.Ī United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S.