Questions Answered for $1 1928 & $100 1966 Legal Tender Notes?
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- čas přidán 7. 09. 2024
- Small size United States Notes have always been popular with collectors most likely because of their eye-catching bright red Treasury Seal, red serial numbers and affordability. But some of them are not what they seem. This video reveals several mysteries surrounding two small size red seal United States Notes of the 1920s and 1960s.
Hi, I’m Dan and welcome to Polar Currency and video number six. I like to dig into the stories and history that make banknotes much more than money. This video reveals several mysteries of two small size red seal United States Notes from the 1920s and 1960s. I found these mysteries very interesting because they go beyond the history and present some market value questions.
Small size United States Notes have always been popular with collectors most likely because of their eye-catching bright red Treasury Seal, red serial numbers and affordability. United States Notes were the first form of paper money issued U.S. Government from 1862 to 1971. There are two, small size, United States Notes, Series 1928 $1 and 1966 $100 issues that have some mystery, unanswered questions and maybe, a bit of conspiracy theory behind them that, in my opinion, remain unresolved to this day. As with all mysteries there’s always a story behind the history.
As of 2023 United States Notes were issued longer than any other paper currency type. Today’s version of the Federal Reserve Note basically has been issued since 1914. The First Legal Tender Act of 1862 created United States Notes as a form of fiat currency legislating that they were, “lawful money and a legal tender in payment of all debts, public and private, within the United States.” So, what does Fiat mean when it comes to money? Fiat is currency is not backed by any commodity such as gold or silver. The only value that fiat currency has is that a government states that it is legal tender. Fiat is a Latin term, meaning “an authoritative decree, sanction, or order”. Not looking to go down the rabbit hole of rationalizing fiat currency - just stating fact here. And honestly - that ship sailed a long time ago.
Because the original United States Notes bore the legal obligation "This Note is a Legal Tender" on the back they’re more commonly referred to as Legal Tender Notes. They were issued by the U.S. Treasury directly into circulation originally as a way to pay expenses and debt incurred by the Union during the American Civil War which came dangerously close to bankrupting the Federal Government. Over the next century legislation governing United States Notes was modified multiple times and numerous series of ‘Legal Tender Notes’ have been issued by the U.S. Treasury.
From 1862 to 1912 large size Legal Tender Notes were issued in one to ten thousand dollar denominations. Only the one, two, five, ten, and twenty dollar denominations were issued after 1912. And after July of 1929, when the new reduced sized currency was released into circulation, the denominations were reduced to the one, two, five and 100 dollar banknotes. But in reality only the two dollar and five dollar Legal Tenders circulated. Alright, I’m getting ahead of myself. We have to go back in time first. Legal Tender Notes did face plenty of legal obstacles. They were declared unconstitutional in early 1870 by the U.S. Supreme Court for violating the fifth amendment. The majority opinion, written by Chief Justice Salmon P. Chase, who ironically, was the former Secretary of the Treasury and the central figure in making Legal Tender Notes legal currency back in 1862.
Chase’s 1870 opinion stated that the congressional authorization of United States Notes as legal tender violated Fifth Amendment guarantees against deprivation of property without due process of law. The decision was reversed the next year with a lot of political maneuvering and a game of Supreme Court musical chairs - I’m sure that’s shocking to learn. The Legal Tender Act of 1862 came under question again before the Supreme Court in 1884 but the legality of the banknotes was upheld for a second, and final time.
Legal Tender Note sidebar here. Being the first paper currency type issued by the U.S. Federal Government the reverse of the new currency was printed in green ink forever giving most U.S. paper currency the nickname “Greenbacks”. According to the book, History of Bureau of Engraving and Printing The First Hundred Years, the color was selected because it was very difficult to counterfeit and readily available.
Currency, Money, Collecting, Numismatist, Numismatic, Numismatist, History, Dollar, Bank note, Banknote, Hobby, Coin, Gold, Silver, Unites States Money, Bureau of Engraving & Printing, United States Treasury, Paper Currency, Gold Certificate, Silver Certificate, Legal Tender Note, United States Note, National Banknote, Obsolete Banknote, Federal Reserve Note, Federal Reserve Bank Note, National Bank Note, Small Size Bank Notes, U.S. Mint, US Mint, Obsolete Bank note
Great video on the United States legal tender notes. These notes have always been one of my favorites cause of those bright red seals on the banknotes. I have a few legal tender notes in both large and small size.
Looking forward to your next paper currency video.
I agree - they do “pop” with that red seal especially on the small size. Same note as FRN but it just looks so different. Probably because we are so used to the green seal. Thanks for the kind words!
I buy and sell small size us paper and the red 100 has always been one of my favorite. The 1928 2$ red two , my favorite note by far. Thanks for the cool video!
How can you not count any red seal small size as a favorite - they just POP! Thanks for the comment.
Your videos are of incredibly high quality, and with your touch of humor added in , they are fun to watch. You and @stuplubak have the best currency videos on CZcams
Thanks for the kind words - and how do you not love @stuplubak? Completely have a currency man crush on him.
@@PolarCurrency LOL
@@PolarCurrency @stuplubak definitely inspired me to start searching dollar bills and put a set together.
Ok these videos are fun to watch. Very entertaining and fun to watch.
Gunny thank you! You must have some free time!
Watched a second time......... Learning something from you everytime. Many Thanks.
I love your “ironic moment” 😂 Ahhhh, hypocrisy was alive and well even then 🤣 Great video Dan!
Pretty sure the entire video was like 5 sidebars! Thanks Dean - and you know I love irony, except when it comes to my daughter's friends who are boys.
@@PolarCurrency it was fantastic! Even my father was leaning over my shoulder when you were explaining how they have a less collectible value even when they are rarer. He was like that’s crazy! He didn’t believe that I know you 😂 😎🤙🏼
First (and most important) Georgie is sooo adorable! I knew bits and pieces of these stories so I'm glad to see it all tied together. Great job! My 2 cents is really about the "value" of money. As in every note issued is worth face value. I have a $10,000 gold certificate that would disagree with you! Take care my friend.
Thanks Steve and good point with even more mystery! It is weird with the uni-face $5 & $10K Gold Certs.
Interesting historical information. Great notes! ❤ The only guess I can give about the price differences is that more of the red seal Legal Tenders survive today. Many of them probably survive in higher grades than their silver and gold certificate counterparts. Which in the case of the gold certificates were redeemed and destroyed. Just a guess however. Thanks again for a great video! 👍
Thanks Ontario 100. Sound theory with condition and survival rate.
Thanks Ontario! Very good theory on price.
Love this episode! Those are two of my favorite bills, although still working on owning the $100. Definitely noticed the $1 with a 1928 date but 1933 printing. A possible reason for it being back dated not mentioned is because they were already working on a Series 1934 design for silver certificates, and felt like it was just better to make it look more like the old Series. Why, not sure, but then again, the $1 denomination was their most experimental denomination of small sized currency with designs, the 1934 was swiftly replaced with the more subtle 1935, there were R and S notes in that series, and other little things like the series 1935 changing to 1935A because the plate numbers increased in size by .5mm. Also feel like they made the seal look more like the Gold Certificate seal was they never intended for them to be circulated here, and so they would stand out even more perhaps to color blind agents who for some reason could not see that vibrant red. As for the 15 years to eventually release them, pretty sure that it was all a matter of political jockeying to figure out exactly why they were basically just sitting in a vault, and to actually release them to a Territory in need of help. The $100, probably because the legendary status of Gold Certificates basically originally being made illegal to own after the removal of the standard, with so many being destroyed, then finally being allowed again for a numismatic collectible brings more demand than something that was printed just to meet an obligation on the record for many decades prior.
Thanks for the additions to the history and more theories as to why. Thanks for the comments.
Awesome video. Love hearing your stories about notes
Thanks x2 blkcrypto!
Another great video! I really enjoy your presentations and look forward to many more. These small size 1 & 100 US Notes with their mysteries are for me part of their allure. I'd have them in my collection anyway, but I enjoy them much more because of their perplexing history.
I always wondered more about the release of the $1 notes to Puerto Rico, and your explanation makes perfect sense. I'd no idea that the income for them was so low - even in those days! I had always thought that it was some financial scheme of the gov't as left in a vault where they weren't using them, it could have been some smoke and mirrors finance thing where it was 'free' for the gov't to release them to an island where little commerce would likely have the notes escape too far from their shores. Your explanation makes a lot better sense, and has some logic to it that I can understand - finance games not so much, except when I explain why it's such a good deal to get a particular note to my wife! haha.
Waiting anxiously for the next video!
David - ah, the wife. I can tell you I am very lucky it's not like we have a money tree in the back yard. And that 1928 $100 Gold Cert. I have ate up a year of what I budget for purchases. But wouldn't change a thing. The Series 1928 $1 Legal Tender mystery is a good one. Why print them? Why 'back date' them? Why sit on them for 15 years - I realize they counted towards the $322 million but really? Good stuff and thanks for the comments.
Another great video, both well researched and edited!!!!
Thanks Hoosier! Appreciate that.
Another great video! Coming at this from a coin perspective, sometimes there are coins with low mintages that are quite a bit cheaper and readily available than coins with much higher mintages, and it has to do not only with survival rate, but also with the percentage of high condition survivors. Not sure if something like that might have to do with the legal tenders mentioned. Also, I might be alone on this, but I'm not super clear on the timeline or precise difference (theoretical and/or practical) between all the paper currency terms like; banknote, legal tender, certificate, federal reserve note, etc. Thanks again!
Thanks Joe - and you’re most likely correct with the high condition survivors. And the verbiage term…yeah that’s a video short! I do interchange bill, note, banknote as different generic terms. Legal Tender could be in there also but that could apply to coins too, also and the fact that United States Notes took on the slang term “Legal Tender” as a formal name adding more confusion. So, good question.
I have the one dollar and hundred dollar legal tender notes, and the beginning serial number on both notes is 007, so cool.
OK - I'm not a serial number guy, totally respect the numbers though but 007 and to have both!! Super cool and rare to have just one.
As usual....awesome videos....very informative!
Appreciate that and thanks for the comment.
Ha love the comical add ins you did on this one! You on something! hahaha I adore the small size red seal legals. Especially the 1. Something to consider, which I'n sure you did, is price reflects rarity but also demand. Gold seals in general have a VERY high demand among collectors compared to the red seals. Thus the higher cost. Also, survival population plays a big factor. Just because the notes had a 60-70% higher print run that's not to say there are now less surviving examples than the lower print run counterparts. All of this I'm certain you're aware of just talking out loud. Man good Ole Chase! Reneged on his decision in only 8 years! Sounds like a bunch of our politicians now days! hahaha ;) Excellent deep dive on the history of these bud. Loved every second of it!
Thanks Surfer! I can buy that with the $100 - but not the $1 - love the conversation. Thanks for the kind words.
@@PolarCurrency Now the $1 stars are the money makers! Super grail notes!
@@silversurfer1986 No doubt.
Great video. One good thing about getting older is that you have more time to go "back to". HaHa. More examples of where better availability and desirability tend to control prices rather than actual rarity
Yeah that makes sense on the $100 - especially when you add in condition. But doesn't answer for the Series 1928 $1 Legal Tender - and seriously I really want to know where they were for 15 years? It's not a value thing - hell the government uses that on paper clips every day - it's just why? Thanks for the kind words and the comment.
Thanks for the education
You are welcome! Hope you enjoyed and thanks for watching.
Cool video! 🤗
Thank you - especially from a guy that has some paper - and very nice ones I see.
@@PolarCurrency thanks! 😎
I love your videos, I am a strong collector of paper. BTW that Series 1966 and Series 1966A $100 did circulate. I can recall Christmas 1967 or 68, when my Grandfather gave a Christmas card to my Mother with a Series 1966 $100 USN. She asked where he got such a strange bill, he said, "It's what the bank gave me." That bank was in Tacoma Washington. There are circulated examples for sale on eBay. This further thickens the mystery. I have one in my collection. Thanks again, I'll keep watching, good work!
CC - thanks for the kind words and the comment. Great story and, yes they did get out into the wild. Your story is the first of heard of someone coming across them "in circulation". Awesome.
I recall seeing them in the Los Angeles area at about the same time.
I also recall receiving occasional $5 U.S. Notes while collecting for my paper route in the early '70s as well as from banks into the 1980s.
The last time I received a 'Red Seal' $5 over the counter from a bank was no earlier than 2008. I still have that one, a Series 1963, probably XF as it is clean, not folded, fairly crisp with very light evidence of handling.
When such things happen, invariably they are the result of coins or notes that escaped from some collection. On that basis I found a 1981 Susan B Anthony dollar and a 2005 Sacagewa dollar in circulation.
Today’s federal money woes. - Fix It Again Tony.
Thank you for clearcut currency episode, and avoiding conspiracy rabbit trails and holes.
Maybe collectors just don’t like color red? Reminds us mid century Red Scare era? Or…
Well the timing was correct?! Kind of. Call me a pinko all day long I love those red seals! Just something about them even though it’s just a color change. Probably because current never changed for the first 30 years of my life. But they’re great stories. Thanks for the comment and kind words.
Fantastic video!
Thank you! Glad you enjoyed it.
Anyone who has held a VF grade Series 1966 $100 U.S. Note since, say, 1973 would be at financial loss if they were to sell it today for $185.
Per usinflationcalculator, $100 in 1973 would be equal to $684.97 today. Subtracting $185 from $684.97 reveals a net loss of $499.97, not exactly a prime investment.
Had the same person stashed $100 worth of 1965 through 1970 Half Dollars (the '40% silver clad' halves, which were then easily found at banks) and sold them today they would have come out (very) slightly ahead as the 'melt value' of each '40%' half is presently $3.56 per coinflation. When one multiplies $3.56 X200, the result is $712, representing a net profit of $27.03 in metal value alone.
Totally get it - the values are taken from Paper Money of the United States are a guide but are not that far off for the 1966 $100 LTN - regardless it shows the percentage difference between the two bills (vs. 1928 $100 Gold Cert) collector value. Add to the fact the 1966 $100 LTN is still considered "legal tender" where the Gold Cert is not which could be related to the value difference. But paper currency has nothing to melt down. Great math on the 40% half dollar inflation value thanks for providing.
@@PolarCurrency So many people also keistered every common, worn, Silver Certificate and 'Red Seal' Two Dollar note they came across in the late 1960s and afterward only to find decades later that most were of little value above 'face'.
I have a few, myself, as well as earlier series Fed Notes that are common and fall in the same category. I still like them as representative examples of the engraver's art and of history.
At least the other mystery can be solved (actually both). The gold certificates were officially to be turned in for destruction in 1933, and many were, since being paper, they could be easily demonetized. By the 1933 law, private citizens were permitted to keep $100 in gold or gold certificates as collector pieces. Though enforcement was sporadic at most, many American citizens much more strongly felt duty-bound to respect and obey their government than they do today. An actual bit of gold would be of much more interest, being incapable of losing its value, at least in foreign markets, but as I said, paper could be demonetized (though it never was), so while keeping a $10 or even a $20 gold bank note might be of interest, that leaves only $90 or $80 worth of actual gold to retain, so of course the $50 and $100 would be much rarer, the survival rate much lower. Though the number of series 1966 and 1966A $100 united states notes that escaped up until 1971 is quite small, their survival rate would be almost 100%, unheard of for almost any other monetary issue, and virtually all in high grades. Gold certificates of $500 and above could not be legally kept at all and note how rare they are, how expensive they are on what few occasions they come up for auction. The $5000 and $10,000 gold certificates are so rare that none are known to be in private hands at all, only museums. As for the 1928 $1 united states note versus the 1928E silver certificate, survival rate is again the concern. The red seal notes, with their distinctive and attractive look, were frequently retained originally, and again in 1949. The 1928E silver certificates on the other hand looked so much like all the previous silver certificates that only completists would have held on to them at all, so the survival rate is actually quite shockingly low, far lower than for the red seals, even (and all the more so) in the lower grades.
Thanks for the add on information. I actually did a video on some of that!
czcams.com/video/nQNQfKHzAMk/video.htmlsi=X56nWzgS-T576FIY
The 1928 note... its almost as if the US forgot to meet its technical legal requirement and realized it too late, needing to backdate the issue. Like minting silver 1964 dated coins in 1966...
That’s a great theory - certainly reasonable and possible. Thanks for the comment.
The 'date freeze' of silver coinage was a provision of the Coinage Act of 1965 as was suspension of mint marks. Clad coinage was produced for the Special Mint Sets of 1965, 66, 67 and for circulation during same years without mint marks at San Francisco, which had been reduced to 'Assay Office' status after the 1955 fire and resumed production of 'S' minted coinage in 1968.
The puppy from Ipanema
Now that made me laugh out loud! That's Georgie - and she is possibly the greatest Australian Shepard in the Western Hemisphere!
Im from PR. I got a dollar tender note the same that u show here i thougt worth more money ? U said $200.00? Not much
They are very undervalued and compared to other US $1 1928 Silver Certificate they are worth 10 times more. However the $1 1928 get expensive very quick as the condition gets better. Thanks for stopping by and appreciate the comment!
@@PolarCurrency thanks I still have other old coins haven't check yet , 👍
Speaking of mysteries. What bill are you referring to as a 1988 bill. I’m not an expert but I’m pretty sure that you meant to say 1928. Lol sorry but I just had to bust your chops for that one.
Busy away! It’s funny you’re only the second one to catch that this week - and it’s been out for awhile. And who doesn’t want to see a 1988 $1 Legal Tender? Thanks busting my chops and the comment.
00:49 - You said _Series 1988?_
Hold Crap I did! I wrote it to state "1928", produced and edited it, recorded the voice overs, and watched it 50 times and NEVER caught that. Good ears and thanks for letting me know.
@@PolarCurrency Stuff happens.