A question on $2 notes

jtryka

I am watching the HSN coin show, and man these guys are bad! Right now they are talking about a 2002 $50 Gold eagle in MS-70 (ICG), and how it's such a bargain for $699. Then they start babbling about how the coin would be worth it even without the gold content, and then they bring up the 09-S VDB cent, and somehow that proves what a great deal this is, and then how that had to have $1 million in gold to get the few MS-70s they have. Anyhow, I digress.

The point is, the item before the eagle was some $2 notes, and some of the things they said seemed just plain wrong to me, but since I am no expert, I figure I would ask here to see if they actually spewed a kernel or truth or if it's the BS I am used to hearing on there.

1. They said that the treasury/Fed are never going to produce $2 bills again. Is that right? I know they don't circulate, but after 20 years of the series 1976, they treasury decided to produce a bunch more in 1995, so isn't is possible that they will produce more sometime in the future? Even if it's unlikely, if the treasury hasn't come out and said they are discontinuing it, wouldn't it be misleading to say they are never going to be produced again?

2. Second, they had a red seal (United States Note), and said the government is withdrawing them from circulation. Well, that's true, as they decided to get rid of the US Notes in the 60s, but occasionally you can find them, especially the $2s (the last one I got from a bank was in 1997). But then the guy went on to say that the Treasury collects the $2 red seal notes, and then when the collect 50 of them, the issue a $100 note??? Huh? Why would they issue a new $100 US note? The last $100 US Notes were series 1966 as far as I know, and I thought they were all withdrawn from circulation. And why would they need to collect 50 twos in order to issue a new note? It's not like the treasury, Fed and BEP are a change machine! They issue notes whenever there is a need for currency.

3. Then they started talking about star notes, and I know what those are. But are they really that rare? I got a $1 star note just the other day.

Anyhow, any thoughts are appreciated. I have to turn the channel now, they are hawking seated halves for $39.95 and I can see the brillo pad marks on the coin throught the TV! And he just when through the previous halves series history, and I head him say, the Kennedy has been around 40 years (close, I count 39), Franklins for 20 years (well it was 15), Walking liberty 35 years (I count 32) and Barbers twenty-something (I'll give him that one). Who wants to join me in chipping in to get these guys a Red Book?

Placid

No clue about the $2.00 but thanks for the laugh.

jtryka

It would be a lot funnier if there weren't so many people getting ripped off as I type this!

MartyF

I've watched HSN and Shop at Home and have listened to much debacle over their credibility....so when are members of this forum, with more expertise than I, going to write a letter(s) to them? I will volunteer to draft the letter, but whom here is willing to back it with representation?

P.S. I absolutely agree that they are mis-representing the products they are selling and the values they are setting forth.

richbeat

As far as I know $2 notes have not been discontinued. The BEP is just not printing any right now because there is a sufficient supply to meet what demand there is.

construct

Richbeat is right. No new $2 bills this year. That puts them in the same category with the $50 bills. You don't hear anybody saying there will never be any more $50 bills made, do you?

Could it be that he meant that there would be no more red sealed twos. That would be true, and yes the bank is supposed to withdraw them from circulation. All the United States Notes are supposed to be replaced.

As for the home shopping guys and their direct mail equivalents. I hate them. I hate them. I hate them. I hate them. I hate them.

Steve27

I doubt that the Bureau of Engraving and Printing has said that they will never print 2-dollar bills again (of course GM said in 1976 that they were never going to build convertibles again). As for the rarity of star notes, just look at the price guides, this quality usually results in a doubling of the value.

jtryka

Thanks for the replies. The way they were talking, they meant that all $2s were going away, never to be produced again, and the reason I belive this is they made the comments on a set of three bills that included 1 red seal, as well as an uncut sheet of 1995s. As far as the red seals, I knew they were supposed to be withdrawn, the $2s, $5s and $100s (there must have been other denominations too, but those are the only ones I've seen dated as late as the 1960s). The whole star note thing related to the 1/2 sheet of 16 1995 $2s that were all star notes, and they wanted $299.95 (who knows if that's a good price?).

Keyrock

Depending on the district for where the note is printed can effect the value of a star note dramatically. Additionally, if a collector is looking for a certian front plate/back plate combination there may only be a few thousand available and they will obviously pay more. I was just at a currency show this weekend and some star notes from 76 and 95 are over 100$ each.

Rich

cointagious

1. perhaps they were refering to $2 us notes(red seals) nevering being produced again. this would be a true statement as the congress voted a couple of years ago to let the fed be responsible for currency circulation. the fed has a mandate to keep a supply of $2 notes for future demand but in the form of federal reserve notes and not legal tender.

2. maybe they were refering to replacing legal tender notes with federal reserve notes? i vaguely remember this being a part of the law as passed.

3. rare? some stars are rare and all are most certainly less common. stars are and have been the hottest area of small size collecting for a long time.

jtryka

I believe these were all from the Atlanta Fed (as all circulating 1995s are), and they were printed in Fort Worth.

Conder101

I'm sure they meant that the $2 United States notes would never be issued again.

On the retiring of the $2 US notes and replacing them with $100 US notes this used to be true. The law used to require that a specific amount of currency in the form of United States Notes be maintained in circulation. but the Fed was taking on the role of being the nations currency supplier. So it was decided to count the US notes in the Fed vaults as being "in circulation". Then as the red seal notes were returned by the banks for replacement an appropriate number of 1966A $100 US notes were placed "in circulation" in the vault. Several years back that requirement for the US notes in circulation was retired and the $100's in the vault circulation were retired and destroyed much to the dismay of the paper money collectors.

All of the 1976 uncut $2 notes were star notes. I don't know if the 1995 uncuts were star notes or not.