A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. Three types can be distinguished: specie and exchange. In the gold specie standard the monetary unit is associated with the value of circulating gold coins, or the monetary unit has the value of a certain circulating gold coin, but other coins may be made of less valuable metal; the gold bullion standard is a system in which gold coins do not circulate, but the authorities agree to sell gold bullion on demand at a fixed price in exchange for the circulating currency. The gold exchange standard does not involve the circulation of gold coins; the main feature of the gold exchange standard is that the government guarantees a fixed exchange rate to the currency of another country that uses a gold standard, regardless of what type of notes or coins are used as a means of exchange. This creates a de facto gold standard, where the value of the means of exchange has a fixed external value in terms of gold, independent of the inherent value of the means of exchange itself.
Most nations abandoned the gold standard as the basis of their monetary systems at some point in the 20th century, although many hold substantial gold reserves. A 2012 survey of leading economists showed that they unanimously reject that a return to the gold standard would benefit the average American; the gold specie standard arose from the widespread acceptance of gold as currency. Various commodities have been used as money. Chemically, gold is of all major metals the one most resistant to corrosion; the use of gold as money began thousands of years ago in Asia Minor. During the early and high Middle Ages, the Byzantine gold solidus known as the bezant, was used throughout Europe and the Mediterranean. However, as the Byzantine Empire's economic influence declined, so too did the use of the bezant. In its place, European territories chose silver as their currency over gold, leading to the development of silver standards. Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa, circa 757–796 CE.
Similar coins, including Italian denari, French deniers, Spanish dineros, circulated in Europe. Spanish explorers discovered silver deposits in Mexico in 1522 and at Potosí in Bolivia in 1545. International trade came to depend on coins such as the Spanish dollar, the Maria Theresa thaler, the United States trade dollar. In modern times, the British West Indies was one of the first regions to adopt a gold specie standard. Following Queen Anne's proclamation of 1704, the British West Indies gold standard was a de facto gold standard based on the Spanish gold doubloon. In 1717, Sir Isaac Newton, the master of the Royal Mint, established a new mint ratio between silver and gold that had the effect of driving silver out of circulation and putting Britain on a gold standard. A formal gold specie standard was first established in 1821, when Britain adopted it following the introduction of the gold sovereign by the new Royal Mint at Tower Hill in 1816; the United Province of Canada in 1854, Newfoundland in 1865, the United States and Germany in 1873 adopted gold.
The United States used the eagle as its unit, Germany introduced the new gold mark, while Canada adopted a dual system based on both the American gold eagle and the British gold sovereign. Australia and New Zealand adopted the British gold standard, as did the British West Indies, while Newfoundland was the only British Empire territory to introduce its own gold coin. Royal Mint branches were established in Sydney and Perth for the purpose of minting gold sovereigns from Australia's rich gold deposits; the gold specie standard came to an end in the United Kingdom and the rest of the British Empire with the outbreak of World War I. From 1750 to 1870, wars within Europe as well as an ongoing trade deficit with China drained silver from the economies of Western Europe and the United States. Coins were struck in smaller and smaller numbers, there was a proliferation of bank and stock notes used as money. In the 1790s, the United Kingdom suffered a silver shortage, it ceased to mint larger silver coins and instead issued "token" silver coins and overstruck foreign coins.
With the end of the Napoleonic Wars, the Bank of England began the massive recoinage programme that created standard gold sovereigns, circulating crowns, half-crowns and copper farthings in 1821. The recoinage of silver after a long drought produced a burst of coins; the United Kingdom struck nearly 40 million shillings between 1816 and 1820, 17 million half crowns and 1.3 million silver crowns. The 1819 Act for the Resumption of Cash Payments set 1823 as the date for resumption of convertibility, reached by 1821. Throughout the 1820s, small notes were issued by regional banks; this was restricted in 1826. In 1833 however, Bank of England notes were made legal tender and redemption by other banks was discouraged. In 1844, the Bank Charter Act established that Bank of England notes were backed by gold and they became the legal standard. According to the strict interpretation of the gold standard, this 1844 act marked the establishment of a full gold standard for British money. In the 1780s, Thomas Jefferson, Robert Morris and Alexander Hamilton recommended to Congress the value of a decimal system.
This system would apply to monies in the United States. The question was what type of standard: silver or both; the United States adopted a silver standard based on the Spanish milled dollar i
John Sherman was a politician from the U. S. state of Ohio during the American Civil War and into the late nineteenth century. A member of the Republican Party, he served in both houses of the U. S. Congress, he served as Secretary of the Treasury and Secretary of State. Sherman sought the Republican presidential nomination three times, coming closest in 1888, but was never chosen by the party, his brothers included General William Tecumseh Sherman. Born in Lancaster, Sherman moved to Mansfield, where he began a law career before entering politics. A Whig, Sherman was among those anti-slavery activists who formed what became the Republican Party, he served three terms in the House of Representatives. As a member of the House, Sherman traveled to Kansas to investigate the unrest between pro- and anti-slavery partisans there, he rose in party leadership and was nearly elected Speaker in 1859. Sherman was elevated to the Senate in 1861; as a senator, he was a leader in financial matters, helping to redesign the United States' monetary system to meet the needs of a nation torn apart by civil war.
After the war, he worked to produce legislation that would restore the nation's credit abroad and produce a stable, gold-backed currency at home. Serving as Secretary of the Treasury in the administration of Rutherford B. Hayes, Sherman continued his efforts for financial stability and solvency, overseeing an end to wartime inflationary measures and a return to gold-backed money, he returned to the Senate. During that time he continued his work on financial legislation, as well as writing and debating laws on immigration, business competition law, the regulation of interstate commerce. Sherman was the principal author of the Sherman Antitrust Act of 1890, signed into law by President Benjamin Harrison. In 1897, President William McKinley appointed him Secretary of State. Failing health and declining faculties made him unable to handle the burdens of the job, he retired in 1898 at the start of the Spanish–American War. Sherman died at his home in Washington, D. C. in 1900. Sherman was born in Lancaster, Ohio to Charles Robert Sherman and his wife, Mary Hoyt Sherman, the eighth of their 11 children.
John Sherman's grandfather, Taylor Sherman, a Connecticut lawyer and judge, first visited Ohio in the early nineteenth century, gaining title to several parcels of land before returning to Connecticut. After Taylor's death in 1815, his son Charles, newly married to Mary Hoyt, moved the family west to Ohio. Several other Sherman relatives soon followed, Charles became established as a lawyer in Lancaster. By the time of John Sherman's birth, Charles had just been appointed a justice of the Supreme Court of Ohio. Sherman's father died in 1829, leaving his mother to care for 11 children. Several of the oldest children, including Sherman's older brother William, were fostered with nearby relatives, but John and his brother Hoyt stayed with their mother in Lancaster until 1831. In that year, Sherman's father's cousin took Sherman into his home in Mount Vernon, where he enrolled in school; the other John Sherman intended for his namesake to study there until he was ready to enroll at nearby Kenyon College, but Sherman disliked school and was, in his own words, "a troublesome boy".
In 1835, he returned to his mother's home in Lancaster. Sherman continued his education there at a local academy where, after being expelled for punching a teacher, he studied for two years. In 1837, Sherman left school and found a job as a junior surveyor on construction of improvements to the Muskingum River; because he had obtained the job through Whig Party patronage, the election of a Democratic governor in 1838 meant that Sherman and the rest of his surveying crew were discharged from their jobs in June 1839. The following year, he moved to Mansfield to study law in the office of his older brother, Charles Taylor Sherman, he joined his brother's firm. Sherman became successful at the practice of law, by 1847 had accumulated property worth $10,000 and was a partner in several local businesses. By that time and his brother Charles were able to support their mother and two unmarried sisters, who now moved to a house Sherman purchased in Mansfield. In 1848, Sherman married the daughter of a local judge.
The couple never had any biological children, but adopted a daughter, Mary, in 1864. Around the same time, Sherman began to take a larger role in politics. In 1844, he addressed a political rally on behalf of the Whig candidate for president that year, Henry Clay. Four years Sherman was a delegate to the Whig National Convention where the eventual winner Zachary Taylor was nominated; as with most conservative Whigs, Sherman supported the Compromise of 1850 as the best solution to the growing sectional divide. In 1852, Sherman was again a delegate to the Whig National Convention, where he supported the eventual nominee, Winfield Scott, against rivals Daniel Webster and incumbent Millard Fillmore, who had become president following Taylor's death. Sherman established a law office there with two partners. Events soon interrupted Sherman's plans for a new law firm, as the passage of the Kansas–Nebraska Act in 1854 inspired him to take a more involved role in politics; that Act, the brainchild of Illinois Democrat Stephen A. Douglas, opened the two named territories to slavery, an implicit repeal of the Missouri Compromise of 1820.
Intended to quiet national agitation over slavery by shifting the decisi
In economics, the money supply is the total value of monetary assets available in an economy at a specific time. There are several ways to define "money", but standard measures include currency in circulation and demand deposits. Money supply data are recorded and published by the government or the central bank of the country. Public and private sector analysts have long monitored changes in the money supply because of the belief that it affects the price level, the exchange rate and the business cycle; that relation between money and prices is associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw rapid increases in its money supply saw rapid increases in prices; this is one reason for the reliance on monetary policy as a means of controlling inflation. The nature of this causal chain is the subject of contention.
Some heterodox economists argue that the money supply is endogenous and that the sources of inflation must be found in the distributional structure of the economy. In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP. See European Central Bank for other approaches and a more global perspective. Money is used as a medium of exchange, a unit of account, as a ready store of value, its different functions are associated with different empirical measures of the money supply. There is no single "correct" measure of the money supply.
Instead, there are several measures, classified along a spectrum or continuum between narrow and broad monetary aggregates. Narrow measures include only the most liquid assets, the ones most used to spend. Broader measures add less liquid types of assets; this continuum corresponds to the way that different types of money are more or less controlled by monetary policy. Narrow measures include those more directly affected and controlled by monetary policy, whereas broader measures are less related to monetary-policy actions, it is a matter of perennial debate as to whether narrower or broader versions of the money supply have a more predictable link to nominal GDP. The different types of money are classified as "M"s; the "M"s range from M0 to M3 but which "M"s are focused on in policy formulation depends on the country's central bank. The typical layout for each of the "M"s is as follows: M0: In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary base, or narrow money.
MB: is referred to total currency. This is the base from which other forms of money are created and is traditionally the most liquid measure of the money supply. M1: Bank reserves are not included in M1. M2: Represents M1 and "close substitutes" for M1. M2 is a broader classification of money than M1. M2 is a key economic indicator used to forecast inflation. M3: M2 plus large and long-term deposits. Since 2006, M3 is no longer published by the US central bank. However, there are still estimates produced by various private institutions. MZM: Money with zero maturity, it measures the supply of financial assets redeemable at par on demand. Velocity of MZM is a accurate predictor of inflation; the ratio of a pair of these measures, most M2 / M0, is called an money multiplier. The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking. Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created; this new type of money is.
In short, there are two types of money in a fractional-reserve banking system: central bank money commercial bank money In the money supply statistics, central bank money is MB while the commercial bank money is divided up into the M1-M3 components. The types of commercial bank money that tend to be valued at lower amounts are classified in the narrow category of M1 while the types of commercial bank money that tend to exist in larger amounts are categorized in M2 and M3, with M3 having the largest. In the United States, a bank's reserves consist of U. S. currency held by the bank plus the bank's balances in Federal Reserve accounts. For this purpose, paper currency on hand and balances in Federal Reserve accounts are interchangeable. Reserves may come from any source, including the federal funds market, deposits by the public, borrowing from the Fed itself. A reserve requirement is a ratio a bank must maintain between deposit reserves. Reserve
Rutherford B. Hayes
Rutherford Birchard Hayes was the 19th president of the United States from 1877 to 1881, having served as an American representative and governor of Ohio. Hayes was a lawyer and staunch abolitionist who defended refugee slaves in court proceedings in the antebellum years. During the American Civil War, he was wounded while fighting in the Union Army, he was nominated as the Republican candidate for the presidency in 1876 and elected through the Compromise of 1877 that ended the Reconstruction Era by leaving the South to govern itself. In office he withdrew military troops from the South, ending Army support for Republican state governments in the South and the efforts of African-American freedmen to establish their families as free citizens, he promoted civil service reform, attempted to reconcile the divisions left over from the Civil War and Reconstruction. Hayes, an attorney in Ohio, served as city solicitor of Cincinnati from 1858 to 1861; when the Civil War began, he left a fledgling political career to join the Union Army as an officer.
Hayes was wounded five times, most at the Battle of South Mountain. He was promoted to the rank of brevet major general. After the war, he served in the Congress from 1865 to 1867 as a Republican. Hayes left Congress to run for governor of Ohio and was elected to two consecutive terms, from 1868 to 1872, he served a third two-year term, from 1876 to 1877. In 1876, Hayes was elected president in one of the most contentious elections in national history, he lost the popular vote to Democrat Samuel J. Tilden but he won an intensely disputed electoral college vote after a Congressional commission awarded him twenty contested electoral votes; the result was the Compromise of 1877, in which the Democrats acquiesced to Hayes's election on the condition that he withdraw remaining U. S. troops protecting Republican office holders in the South, thus ending the Reconstruction era. Hayes believed in equal treatment without regard to race, he ordered federal troops to guard federal buildings and in so doing restore order from the Great Railroad Strike of 1877.
He implemented modest civil service reforms that laid the groundwork for further reform in the 1880s and 1890s. He vetoed the Bland–Allison Act, which would have put silver money into circulation and raised nominal prices, insisting that maintenance of the gold standard was essential to economic recovery, his policy toward Western Indians anticipated the assimilationist program of the Dawes Act of 1887. Hayes kept his pledge not to run for re-election, retired to his home in Ohio, became an advocate of social and educational reform. Biographer Ari Hoogenboom said his greatest achievement was to restore popular faith in the presidency and to reverse the deterioration of executive power that had set in after the assassination of Abraham Lincoln. Although supporters have praised his commitment to civil service reform and defense of civil rights, Hayes is ranked as average or below average by historians and scholars. Rutherford Birchard Hayes was born in Delaware, Ohio, on October 4, 1822, to Rutherford Hayes, Jr. and Sophia Birchard.
Hayes's father, a Vermont storekeeper, took the family to Ohio in 1817. He died ten weeks before Rutherford's birth. Sophia took charge of the family, raising Hayes and his sister, the only two of the four children to survive to adulthood, she never remarried, Sophia's younger brother, Sardis Birchard, lived with the family for a time. He became a father figure to him, contributing to his early education. Through each of his parents, Hayes was descended from New England colonists, his earliest immigrant ancestor came to Connecticut from Scotland in 1625. Hayes's great-grandfather, Ezekiel Hayes, was a militia captain in Connecticut in the American Revolutionary War, but Ezekiel's son left his Branford home during the war for the relative peace of Vermont, his mother's ancestors migrated to Vermont at a similar time. Most of his close relatives outside Ohio continued to live there. John Noyes, an uncle by marriage, had been his father's business partner in Vermont and was elected to Congress, his first cousin, Mary Jane Mead, was the mother of sculptor Larkin Goldsmith Mead and architect William Rutherford Mead.
John Humphrey Noyes, the founder of the Oneida Community, was a first cousin. Hayes attended the common schools in Delaware and enrolled in 1836 at the Methodist Norwalk Seminary in Norwalk, Ohio, he did well at Norwalk, the following year transferred to The Webb School, a preparatory school in Middletown, where he studied Latin and Ancient Greek. Returning to Ohio, he attended Kenyon College in Gambier in 1838, he enjoyed his time at Kenyon, was successful scholastically. He addressed the class as its valedictorian. After reading law in Columbus, Hayes moved east to attend Harvard Law School in 1843. Graduating with an LL. B, he opened his own law office in Lower Sandusky. Business was slow at first, but he attracted a few clients and represented his uncle Sardis in real estate litigation. In 1847, Hayes became ill with. Thinking a change in climate would help, he considered enlisting in the Mexican–American War, but on his doctor's advice he instead visited family in New England. Returning from there and his uncle Sardis made a long journey to Texas, where Hayes visited with Guy M. Bryan, a Kenyon classm
First Bank of the United States
The President and Company, of the Bank of the United States known as the First Bank of the United States, was a national bank, chartered for a term of twenty years, by the United States Congress on February 25, 1791. It followed the Bank of North America, the nation's first de facto central bank. Establishment of the Bank of the United States was part of a three-part expansion of federal fiscal and monetary power, along with a federal mint and excise taxes, championed by Alexander Hamilton, first Secretary of the Treasury. Hamilton believed a national bank was necessary to stabilize and improve the nation's credit, to improve handling of the financial business of the United States government under the newly enacted Constitution; the First Bank building, located in Philadelphia, within Independence National Historical Park, was completed in 1797, is a National Historic Landmark for its historic and architectural significance. In 1791, the Bank of the United States was one of the three major financial innovations proposed and supported by Alexander Hamilton, first Secretary of the Treasury.
In addition to the national bank, the other measures were an assumption of the state war debts by the U. S. government, establishment of a mint and imposition of a federal excise tax. The goals of Hamilton's three measures were to: Establish financial order and precedence in and of the newly formed United States. Establish credit—both in a country and overseas—for the new nation. Resolve the issue of the fiat currency, issued by the Continental Congress prior to and during the American Revolutionary War—the "Continental". In simpler words, Hamilton's four goals were to: Have the Federal Government assume the Revolutionary War debts of the several states Pay off the war debts Raise money for the new government Establish a national bank and create a common currency According to the plan put before the first session of the First Congress in 1790, Hamilton proposed establishing the initial funding for the First Bank of the United States through the sale of $10 million in stock of which the United States government would purchase the first $2 million in shares.
Hamilton, foreseeing the objection that this could not be done since the U. S. government did not have $2 million, proposed that the government makes the stock purchase using money lent to it by the bank. The remaining $8 million of stock would be available to the public, both in the United States and overseas; the chief requirement of these non-government purchases was that one-quarter of the purchase price had to be paid in gold or silver. Unlike the Bank of England, the primary function of the bank would be a credit issued to government and private interests, for internal improvements and other economic development, per Hamilton's system of Public Credit; the business would be involved in on behalf of the federal government—a depository for collected taxes, making short-term loans to the government to cover real or potential temporary income gaps, serving as a holding site for both incoming and outgoing monies—was considered important but still secondary in nature. There were other, non-negotiable conditions for the establishment of the First Bank of the United States.
Among these were: That the bank would have a twenty-year charter running from 1791 to 1811, after which time it would be up to the Congress to approve or deny renewal of the bank and its charter. That the bank, to avoid any appearance of impropriety, would: be forbidden to buy a government bond. Have a mandatory rotation of directors. Neither issue incur debts beyond its actual capitalization; that foreigners, whether overseas or residing in the United States, would be allowed to be First Bank of the United States stockholders, but would not be allowed to vote. That the Secretary of the Treasury would be free to remove government deposits, inspect the books, require statements regarding the bank's condition as as once a week. To ensure that the government could meet both the current and future demands of its governmental accounts, an additional source of funding was required, "for interest payments on the assumed state debts would begin to fall due at the end of 1791...those payments would require $788,333 annually, and... an additional $38,291 was needed to cover deficiencies in the funds, appropriated for existing commitments."
To achieve this, Hamilton repeated a suggestion he had made nearly a year before—increase the duty on imported spirits, plus raise the excise tax on domestically distilled whiskey and other liquors. Local opposition to the tax led to the Whiskey Rebellion. Hamilton's bank proposal faced widespread resistance from opponents of increased federal power. Secretary of State Thomas Jefferson and James Madison led the opposition, which claimed that the bank was unconstitutional, that it benefited merchants and investors at the expense of the majority of the population. Like most of the Southern members of Congress and Madison opposed a second of the three proposals of Hamilton: establishing an official government Mint, they believed this centralization of power away from local banks was dangerous to a sound monetary system and was to the benefit of business interests in the commercial north, not southern agricultural interests, arguing that the right to own property would be infringed by these proposals.
Furthermore, they contended that the creation of such a bank violated the Constitution, which stated that Congress was to regulate weights
Federal Open Market Committee
The Federal Open Market Committee, a committee within the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations. This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply; the FOMC is the principal organ of United States national monetary policy. The Committee sets monetary policy by specifying the short-term objective for the Fed's open market operations, a target level for the federal funds rate; the FOMC directs operations undertaken by the Federal Reserve System in foreign exchange markets, although any intervention in foreign exchange markets is coordinated with the U. S. Treasury, which has responsibility for formulating U. S. policies regarding the exchange value of the dollar. The Committee consists of the seven members of the Federal Reserve Board, the president of the New York Fed, four of the other eleven regional Federal Reserve Bank presidents, serving one year terms.
The Fed chair has been invariably appointed by the committee as its chair since 1935, solidifying the perception of the two roles as one. The Federal Open Market Committee was formed by the Banking Act of 1933, did not include voting rights for the Federal Reserve Board of Governors; the Banking Act of 1935 revised these protocols to include the Board of Governors and to resemble the present-day FOMC, was amended in 1942 to give the current structure of twelve voting members. Four of the Federal Reserve Bank presidents serve one-year terms on a rotating basis; the rotating seats are filled from the following four groups of banks, one bank president from each group: Boston and Richmond. The New York President always has a voting membership. All of the Reserve Bank presidents those who are not voting members of the FOMC, attend Committee meetings, participate in discussions, contribute to the Committee's assessment of the economy and policy options; the Committee meets eight times a year once every six weeks.
By law, the FOMC must meet at least four times each year in Washington, D. C. Since 1981, eight scheduled meetings have been held each year at intervals of five to eight weeks. If circumstances require consultation or consideration of an action between these regular meetings, members may be called on to participate in a special meeting or a telephone conference, or to vote on a proposed action by proxy. At each scheduled meeting, the Committee votes on the policy to be carried out during the interval between meetings. Attendance at meetings is restricted because of the confidential nature of the information discussed and is limited to Committee members, nonmember Reserve Bank presidents, staff officers, the Manager of the System Open Market Account, a small number of Board and Reserve Bank staff. Before each scheduled meeting of the FOMC, System staff prepare written reports on past and prospective economic and financial developments that are sent to Committee members and to nonmember Reserve Bank presidents.
Reports prepared by the Manager of the System Open Market Account on operations in the domestic open market and in foreign currencies since the last regular meeting are distributed. At the meeting itself, staff officers present oral reports on the current and prospective business situation, on conditions in financial markets, on international financial developments. In its discussions, the Committee considers factors such as trends in prices and wages and production, consumer income and spending and commercial construction, business investment and inventories, foreign exchange markets, interest rates and credit aggregates, fiscal policy; the Manager of the System Open Market Account reports on account transactions since the previous meeting. After these reports, the Committee members and other Reserve Bank presidents turn to policy; each participant expresses his or her own views on the state of the economy and prospects for the future and on the appropriate direction for monetary policy. Each makes a more explicit recommendation on policy for the coming intermeeting period.
The Committee must reach a consensus regarding the appropriate course for policy, incorporated in a directive to the Federal Reserve Bank of New York—the Bank that executes transactions for the System Open Market Account. The directive is cast in terms designed to provide guidance to the Manager in the conduct of day-to-day open market operations; the directive sets forth the Committee's objectives for long-run growth of certain key monetary and credit aggregates. It sets forth operating guidelines for the degree of ease or restraint to be sought in reserve conditions and expectations with regard to short-term rates of growth in the monetary aggregates. Policy is implemented with emphasis on supplying reserves in a manner consistent with these objectives and with the nation's broader economic objectives. Under the Federal Reserve Act, the Chairman of the Board of Governors of the Federal Reserve System must appear before Congressional hearings at least twice per year regarding "the efforts, activities and plans of the Board and the Federal Open Market Committee with respect to the conduct of monetary policy".
The statute requires that the Chairman appear before the House Committee on Financial Services in February and July of odd-numbered years, bef
Federal Reserve Bank Note
Federal Reserve Bank Notes are banknotes that are legal in the United States issued between 1915 and 1934, together with United States Notes, silver certificates, Gold Certificates, National Bank Notes and Federal Reserve Notes. They had the same value as other kinds of notes of similar value. Federal Reserve Bank Notes are different from Federal Reserve Notes in that they are backed by one of the twelve Federal Reserve Banks, rather than by all collectively, they were backed in a similar way to National Bank Notes, using U. S. bonds, but issued by Federal Reserve banks instead of by chartered National banks. Federal Reserve Bank Notes are no longer issued. S. banknotes still in production since 1971 are the Federal Reserve Notes. Large size Federal Reserve Bank Notes were first issued in 1915 in denominations of $5, $10, $20, using a design that shared elements with both the National Bank Notes and the Federal Reserve Notes of the time. Additional denominations of $1, $2, $50 were issued in 1918.
Small size Federal Reserve Bank Notes were printed as an emergency issue in 1933 using the same paper stock as National Bank Notes. They were printed in denominations of $5 through $100. A National Bank Note has a line for the signature of the president of the national bank; the small size Federal Reserve Bank Note printed a bar over the label for this line, since Federal Reserve Banks had governors, not presidents. The wording was changed to add, "Or by like deposit of other securities" after the phrase, "Secured by United States bonds deposited with the Treasurer of the United States of America"; the twelve Federal Reserve Districts appear on the bills as black alphabetically sequenced letters, from "A" to "L", a system followed today on the $1 and $2 bills. This emergency issue of notes was prompted by the public hoarding of cash due to many bank failures happening at the time; this limited the ability of the National Banks to issue notes of their own. Small size Federal Reserve Bank Notes were discontinued in 1934 and have been no longer available from banks since 1945.
As small size notes, they have serial numbers, as do National Bank Notes of the era. But while they look similar, both have the words, "National Currency" across the top of the obverse, they had different issuers and are considered to be distinctly different types of bills