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Pillar of the Community
 United States
7297 Posts |
From 1934 we now go back to 1902. This was my most expensive note to date. This is a National Bank series from Detroit. In the 1900's Detroit's population is 285,704. It is the 13th largest city in the United States. In 1950 the population reached 1.85 million and is now 667k, or the 24th largest city. There are blocks with no houses on it. Parts of detroit are returning back to nature. Unlike Detroit this note doesn't look like it suffered as much.   |
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Pillar of the Community
United States
4637 Posts |
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Pillar of the Community
 United States
5029 Posts |
Beautiful note. And as Steve commented, I too love the signatures.  |
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Bedrock of the Community
United States
94367 Posts |
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Moderator
United States
190397 Posts |
Very nice! |
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Pillar of the Community
United States
7297 Posts |
Today we go to 1928. Today's note is the Federal Reverse Note for 1928. The wording on these said: "Redeemable In Gold On Demand At The United States Treasury, Or In Gold Or Lawful Money At Any Federal Reserve Bank." The above phrase is known as the gold clause. Sadly this phrase does not make 1928 Federal Reserve notes also gold certificates. For being almost 100 years old, these are very reasonable. You can get them for a little over face.   |
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Pillar of the Community
United States
7297 Posts |
Sadly in 1933 the "gold clause" was taken away and money became pure Fiat. Notes have value because the government says it has value.  Edited by hfjacinto
09/10/2020 08:57 am
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Pillar of the Community
United States
7297 Posts |
As I was confused about why this is a gold certificate:  But this isn't: I asked in another forum I am a member and I learned a lot. For your reading pleasure: "In the case of the gold certificates, the US Treasury is acting as nothing more than a safe deposit box. They take double eagles (or other gold), lock them up in a vault, and have the BEP print up a gold certificate which they spend. If anyone shows up to redeem, then gold is drawn from the certified stock and paid out. The number of gold certificates is exactly equal to the amount of gold stockpiled and held against them. There was, in theory, no way for a gold certificate to go bad.
Federal reserve notes rely on fractional reserve banking. The federal reserve might hold bonds, commercial paper, gold - lots of different things and - against that collateral - the federal reserve issues federal reserve notes. The US Treasury guarantees the performance of the fed in gold and if you show up and demand gold they will pay you in gold (from a small pool of gold held for just this purpose) and submit a request for payment to the treasury from the fed. The fed can then either cough up gold to the treasury, or the treasury might accept other collateral. However, via this mechanism the circulating balance of federal reserve obligations can greatly exceed the amount of the gold available to redeem all of them at once. If too many people show up with FRN's to redeem for gold it is possible for the fed to fail.
I will also note that the promises printed on these notes are just very terse summaries of what the underlying laws actually say. Oh - and the laws can be changed at any time. The U.S. had a heck of a time figuring out how to default on those gold certificates ... but it was no problem devaluing the FRN's ..."Up until 1933 you could get exchange Gold Certificates at the post office. I wish I had a time machine  |
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Bedrock of the Community
United States
94367 Posts |
An articulate explanation of a complex subject. Thanks!
Edited by Coinfrog
09/10/2020 10:04 am
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Pillar of the Community
United States
7297 Posts |
Quote:
An articulate explanation of a complex subject. Because of collecting US Notes I learned much about the US banking and money system. I also learned about the Great Depression and the changes needed to fight it. Collecting > Learning > Knowledge |
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Moderator
United States
190397 Posts |
Nice examples and very interesting information! |
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Pillar of the Community
United States
7297 Posts |
This isn't a purchase, just one of the notes I inherited. This is the only star note I have.   |
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Moderator
United States
190397 Posts |
Quote: This isn't a purchase, just one of the notes I inherited. This is the only star note I have. Fantastic! |
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Pillar of the Community
United States
7297 Posts |
@jBuck, thank you for all the thumbs up! I appreciate it!  |
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Pillar of the Community
2224 Posts |
Thanks for sharing the nice art work hfjacinto!  I've been watching for a 1902 to call out to me .... |
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Replies: 991 / Views: 78,302 |
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Posted 09/09/2020 08:06 am
