Series 1966 And Series 1966A United States Notes

Unlike Federal Reserve Notes, which are an obligation of the Federal Reserve banks, United States Notes are a direct obligation of the United States Treasury. Until 1994, the United States Treasury was required by law to keep a certain amount of United States Notes in circulation. I believe this requirement came from section 3 of "an Act fixing the amount of United States Notes, providing for redistribution of the national bank currency and for other purposes" of 1874. Section 3 of that act required that the treasury be prepared to redeem with United States Notes any National Bank Notes presented in increments of one thousand dollars to the treasury. In 1966, the United States Treasury began issuing United Notes in the denomination of $100 to more efficiently meet this requirement. In 1994, section 602 (f)4 of the "Riegle Community Development and Regulatory Improvement Act" repealed the requirements of section 3 of the 1874 act and subsequently, all United States Notes in the possession of the treasury were destroyed.

I remember reading years ago that the treasury met the requirement of having United States Notes in circulation by moving stacks of unissued notes to another room and then declaring them to be de jure "in circulation." I have had several people asking for a specific cite for this story but cannot find one. I think I read about it in the Numismatic News and/or Bank Note Reporter. Does anyone have a reliable source that confirms this story?

Some Series 1966 and Series 1966A $100 United States Notes did end up in the hands of the public, i.e., in de facto circulation. According to the treasury, the amount of outstanding National Bank Notes was reduced by approximately 22 million dollars between 1966 and 1994. Is redemption of National Bank Notes the source of the Series 1966 and Series 1966A notes that are in the hands of the public? If so, exactly how did this work? I am sure there were some banks involved, including Federal Reserve Banks. Are there other ways that Series 1966 and Series 1966A notes ended up in the hands of the public?