D Brent Pogue Note
Tyrock
Posts: 306 ✭✭✭
Here's a $5 Legal
Tender Note I bought in a 2020 Stack's Bowers auction. It was the final auction of Dave Pogue numismatic items.
4
Comments
Very nice. The end of the line for small-size $5 Legal Tenders.
Thanks for sharing.
Why is this note special ? Not many $5 USN's printed ?
Also....1963 date ? I would think by then you'd have higher-graded bills available...are there ?
nice, i like
Probably because almost 4M of these replacement notes were printed and there’s plenty of survivors.
My thoughts exactly. The pedigree is the only significance
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Totally agree.
I’ve seen other notes from his collection, and he definitely had a good eye for finding notes with great eye appeal. The ruby-red seal and serial numbers on the OP’s note are amazing.
When you think about it...why was the BEP/Treasury printing different kinds of legal tender notes, i.e., United States Notes and Federal Reserve Notes ?
The only thing Americans cared about was denominations...so why even entail added expense of different types of currency with different legal structures on them ?
Other than Federal Reserve Notes, the last two types of currency to be printed and circulate were silver certificates and United States (Legal Tender) Notes. Once these currency types were created, they weren't so easy to get rid of, even after their original purpose was achieved. And the U.S. Treasury didn't really want to get rid of them, just in case they were needed in the future. And they represented an interest-free loan from the Public.
Federal Reserve Notes (and Nationals) are considered "bank" currency rather than federal currency. The Fed, not Congress, controls how much is issued, subject to debt limits, set by Congress. The Fed decides how much in bonds and how much in cash and controls other details. The Treasury and Congress controlled Silver Certificates and U.S. Notes more directly and could issue and authorize emergency issues, after the fed started putting it's notes into circulation, too. Before the fed (1914), the Treasury issued and backed all types of currency (Legal Tenders, Silver and Gold Certificates, and Treasury Notes), except Nationals. There were four or five different types of currency in circulation in the U.S. from the late 1800s to the 1930s. From the 1940s-60s, there were three, and since about 1970, there is a single type of paper currency in circulation in the U.S.-The Federal Reserve Note, 110 years old.
But the law authorizing Silver Certificates states that each $1 silver certificate is redeemable for a silver dollar (or like amount of silver). Once the price of silver rose above the value of silver in the silver dollar (about $1.31/oz. during the late 1960s), bags of silver dollars started to flow out of storage in the Treasury where they had sat for at least four decades. One could now exchange (sell for cash) a paper silver certificate for more than face value in silver. As the price of silver rose, operations that just purchased silver certificates from citizens pulling them for circulation sprung up. The price of a $1 silver certificate reached around $1.85 before the government ended the redemption for silver dollars or silver granules, which was another form in which the government honored the redemption in silver clause. Silver certificates are still legal tender for face value but are no longer redeemable in silver.
United States Notes were a form of currency created during the Civil War where they served an essential role in providing funds for the Union and afterwards as they provided an interest-free, unsecured loan to the government. During the 1870s, US Notes amounted to 300,000,000-$400,000,000 in circulation. Realizing the perils of issuing increasing amounts of fiat currency, backed by nothing and redeemable for nothing, Congress set the limit at $382 million in 1872 and even started to pay down this "loan" to $346 million, where it would stay for almost 100 years. Once you have a free loan from the citizens, why be in a hurry to pay it back?
U.S. Notes came in useful when small denomination notes were needed quickly. As the 20th century progressed, Federal Reserve Notes became the dominant currency. Silver Certificates and U.S. Notes were limited by amount of silver in the Treasury and ability to pay it out or a legal tender limit of $346 million. This amount became a smaller and smaller percentage of currency in circulation. By 1966 there was no need for the few red seal $2s and $5s in circulation, so the BEP recalled these and replaced them with fewer notes (1966 and 1966A $100 Red Seal Notes), most of which sat unneeded in bank vaults.
In September 1994, the Riegle Improvement Act ended the need to hold these packs of 1966 and 1966A CU $100 Red Seal Notes in their vaults, so they were destroyed!
Great explanation Russell.
Weren't United States Notes first printed during the Civil War....Federal Reserve Notes didn't get printed until after 1913 (this is from SC of USPM) ?
I guess I consider the various forms of notes in the current century to be all the same. Nobody sees USN or FRN -- they see $1, or $5, or $10, or $20...right ?
Technically, the Bureau of Engraving & Printing does all the note printing so they print as they see fit based on old currency being turned in for age and/or other bills being in demand. But it's the Fed who controls the money supply via Open Market Operations.
BTW, great post Sell....really learned alot.
sweet auction catalog as well!!