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Newbie With A Bit Of A History Question About Usage Of Large Size Notes

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 Posted 02/06/2022  08:19 am Show Profile   Bookmark this topic Add JLewis1982 to your friends list Get a Link to this Message Number of Subscribers
Hi all, I just started collecting a few months ago and have a question that I haven't been able to find an answer for, so I was wondering if you all might have any insight. We know back when large sized notes were used, there were several types: legal tender, silver/gold certificates, FRNs, FRBNs, etc. I was wondering, were all of these types actually used in daily life, or did one of two kinds dominate circulation? Thanks for your help.
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hfjacinto's Avatar
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 Posted 02/06/2022  08:43 am  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
I'm not an expert on usage but I would assume that FRN, Silver Certificates, Bank Notes and Legal Tenders were common. While gold certificates were more a rich persons note. Remember that silver certificates were generally given in place of silver dollars and gold certificates where an actual exchange for gold. If deposited $20 in gold and went to cash that gold certificate you had to get back $20 in gold.

Since the west was were everyone demanded gold and silver, I would assume that GC and SC were used extensively out there. There was an article once that I read that there was a premium to GC and SC in that in the west they would give 90% of the value of FRN and US notes compared to getting the full value of GC and SC (as they were backed by PM).

Hopefully someone can come in and give more details.
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Dearborn's Avatar
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 Posted 02/06/2022  10:42 am  Show Profile   Bookmark this reply Add Dearborn to your friends list Get a Link to this Reply
During the Civil War, the U.S. government first issued currency for general circulation. The Union had stopped paying out coins, and needed a way to facilitate trade and finance the war. The people were demanding a currency that was guaranteed good by the government. Accordingly, in 1861 the first Federal currency notes were issued.

Between 1861 and 1928, the U.S. issued currency (we refer to it as "large size" because it was bigger than the currency we now use) in many different types. There were Silver and Gold Certificates, backed by precious metal, Legal Tender Notes authorized by Congress, and Federal Reserve Notes issued under the Federal Reserve Act of 1913, among others.

Here are a few well worn notes that are in my collection:
Newbie-With-A-Bit-Of-A-History-Question-About-Usage-Of-Large-Size-Notes
Newbie-With-A-Bit-Of-A-History-Question-About-Usage-Of-Large-Size-Notes
Edited by Dearborn
02/06/2022 10:43 am
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