Question about modern District notes

delistamps

A scan of the "Post some rare New Yorks (Chicagos)" threads prompts a question: With the advent of the common Federal Reserve seal in 1996, eliminating the city name from the lettered seal, do you still associate the letters with District cities? I don't; I really view them more like the old block letters on Silver Certs. They still span A-L, but are they even released geographically?

Jim61

Interesting questions.

From my experience, they still do associate the Cities to the Letters most of the time (over 50%).

As for distribution, they haven't for decades. They have been using what was termed the shotgun method.

SmallSizedGuy

It was approximately 1980 when the Fed began distributing notes shotgun. Wasn't very often at first, but within a few years it was whatever the Fed was printing is what was distributed.

delistamps

Thanks, Jims. Even with the shotgun method I consider a modern $1 or $2 note with the District seal and city name to be a Chicago, Philly, Dallas, etc. note. But I don't feel the same way about the $5 and up big heads.

STLNATS

Originally posted by: delistamps

A scan of the "Post some rare New Yorks (Chicagos)" threads prompts a question: With the advent of the common Federal Reserve seal in 1996, eliminating the city name from the lettered seal, do you still associate the letters with District cities? I don't; I really view them more like the old block letters on Silver Certs. They still span A-L, but are they even released geographically?

OK I admit I'm doing this from memory but am too lazy on a Sunday to look up the specifics. As I recall, the FRNs are the obligation and are issued by the 12 individual banks. While affiliated with each other, generally act in concert with each other and the governing board, each is legally independent with its own board of directors, etc. So the numbers do have significance for me (altho I do not actively pursue district 8 small issues beyond the 1934 issues). I think the bulk of the open market and other policy activities are primarily done electronically these days so currency is less important from a policy perspective than years ago and releasing Boston $20s in STL, for instance, would probably reflect just the local demand for cash and replacement of old notes. In that case, the notes of any district would do fine so long as the actual total outstanding for each bank is managed. Just MH swag on a sleepy holiday weekend Sunday.....

delistamps

That's interesting; I hope others add to the thread!

Jim61

A little more about block collecting of small size $1.00 FRNs in the early days.



In the later 1960s and most of the 1970s block collectors had it quite easy compared to today. Most even collected L2NM (Last 2 Numbers Match) sets. And most had complete sets even though there were some short runs. There was a couple of reasons for this.

1) There were a lot of us collecting those in all of the 12 Districts. When a new block was released, the people in that District went to the banks to get packs of them.

2) The banks had new packs all the time and would gladly help satisfy your requests.

Between those 2, you always found the new releases.

Then the shotgun method of distribution started and fewer were collecting by block any more, and the result was a lot of "key" notes/blocks not being found and saved for the collectors. That also discouraged some from continuing to collect by block. With fewer collecting, that left some areas of the Country uncovered to find the new mystery releases wherever they ended up. Even relatively large print runs would all go to an area where there were no collectors - hence the key blocks. Some of the key blocks have been figured out over the years - where they were released, some still a mystery to me.



You asked for more, there you go.

DanCong

I wanted to see if I could find out more. I really was not able to locate district specific information on ordering and delivering notes. it appears that basically, each district is responsible for providing for the cash needs of it's district by either supplying currency as needed, or receiving it if there are surpluses by the local banks within that district. They provide an order to the BEP based on how much they destroy, plus the amount of growth they expect per denomination. The central bank then issues and distributes that currency as needed. So, I suppose a block of San Francisco $20's can end up in Atlanta if that is what is on hand when requested by Atlanta.
here is a very cool page listing the 2017 print order.2017 FRBN Print Order

I also found a youtube video explaining the 50 notes sheets and plate positions. 50 Notes Sheets

DanCong

it is really annoying that the code for this site was written as if it is 1986 instead of 2016

delistamps

Thanks, Dan. I wonder if the new equipment being used for the 50 note sheets will impact creation or release of error notes, and if so, in which direction. It will be interesting to see.

gnat

Despite the somewhat random distribution of district notes and the now universal Fed seal, as a collector I still associate the district letters and block letters with the particular iindividual districts. Which means that I'm primarily looking for San Francisco district notes.

Jim61

With regards to errors, the new machines with all the sensors in them checking and measuring there has been a significant drop in big head note errors leaving the BEP recently. Hence the high prices for big head errors.



With the new 50 subject machine, I feel there will be a further reduction of errors leaving the BEP. I think it will be goodbye to most of the dramatic fold errors, 3rd print on reverse and right half sheets being loaded when left half sheets should have been since there is no human intervention during the printing process unlike the older machines when the employee had to place the sheets and later the half sheets into the machine input. Mishandling the stack of paper caused a lot of the fold over errors and the others I mentioned. Now it is basically put a pallet of paper in the beginning and out comes a pallet of printed notes ready for distribution.



IMHO of course. Note to self to make a trip to the BEP to see what little can be seen of the 50 note sheet machine in production.