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Paper Money Of The United States

( Originally Published 1918 )

Paper money of this country consists of five kinds: first, legal tender notes, divided into United States notes and Treasury notes; second, national bank notes; third, gold certificates; fourth, silver certificates; fifth, federal reserve notes.

The Legal Tender Notes of the United States are bills issued merely on. the credit of the government. But the acts of 1875 and 1882 direct the Treasurer of the United States to hold $100,000,000 gold as a reserve for their redemption.

The National Bank Notes are issued by the national banks and guaranteed by the government, the banks depositing United States bonds as security.

Gold and Silver Certificates are issued by the government against ,deposits of gold and silver coin, and are exchangeable for the coin on demand: The Treasury holds the coin so deposited as a trust fund. The certificates represent the coin and are used in preference to it merely because a slight bulk in bills can be handled or carried on the person where the coins could not.

United States Notes are legal tender for all debts, public and private, except duties on imports and interest on the public debt.

Treasury Notes issued under the act of July 14, 1890, are legal tender for all debts, public and private, except where otherwise expressly stipulated in the contract.

Gold and Silver Certificates are not legal tender, but are receivable for customs and all public dues.

National Bank Notes are not legal tender, but are receivable for all public dues except duties on imports.

Federal Reserve Notes are obligations of the United States, receivable by all national and member banks and federal reserve banks and for all taxes, customs, and other public dues. They are redeemable in gold on demand.

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