About Paper Money

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Small-size Federal Reserve Bank notes

Only one series of small-size Federal Reserve Bank notes was issued, Series 1929. They are often confused with Federal Reserve notes and are often mistaken for national bank notes.

The confusion arises in part from design similarities and in part from the fact that plates for national bank notes were used to print the Federal Reserve Bank notes. To further complicate matters, they are inscribed NATIONAL CURRENCY across the top. The notes are considered an emergency issue, authorized to meet a pressing need.

Although they carry the series year of 1929, the first notes were authorized by Act of March 9, 1933, which permitted the Federal Reserve Banks to issue currency equal to 100 percent of the face value of U.S. bonds, or 90 percent of the value of commercial paper, used as collateral. The first notes were issued March 11, 1933, two days after the notes were authorized (the speed with which the notes could be issued was hastened though the use of existing national bank note plates). The last notes were delivered Dec. 21, 1933.

The obligation to pay the bearer is the same as it is on the national bank notes, but the words, "or by like deposit of other securities," have been added below the United States of America at the top of the notes.

Series 1929 FRBNs were printed in denominations of $5, $10, $20, $50 and $100. They have brown seals and brown serial numbers.