Federal Reserve Notes, also United States banknotes, are the currently issued
banknotes of the United States dollar
Banknotes of the United States dollar are currently issued as Federal Reserve Notes (1914–).
Previous banknote versions that have been issued include: Silver Certificates (1878–1964), Gold certificates (1865–1934) and United States Notes ...
. The United States
Bureau of Engraving and Printing
The Bureau of Engraving and Printing (BEP) is a government agency within the United States Department of the Treasury that designs and produces a variety of security products for the United States government, most notable of which is Federal Rese ...
produces the notes under the authority of the
Federal Reserve Act of 1913
The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States.
The Pani ...
and issues them to the
Federal Reserve Bank
A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve A ...
s at the discretion of the
Board of Governors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organi ...
of the
Federal Reserve System
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
.
The Reserve Banks then circulate the notes to their member banks, at which point they become liabilities of the Reserve Banks and obligations of the United States.
Federal Reserve Notes are
legal tender
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in pa ...
, with the words "this note is legal tender for all debts, public and private" printed on each note. The notes are backed by financial assets that the Federal Reserve Banks pledge as collateral, which are mainly
Treasury securities
United States Treasury securities, also called Treasuries or Treasurys, are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Since 2012, U.S. gov ...
and
mortgage agency securities that they purchase on the open market by
fiat payment.
History
Prior to centralized banking, each commercial bank issued its own notes. The first institution with responsibilities of a central bank in the U.S. was the
First Bank of the United States
First or 1st is the ordinal form of the number one (#1).
First or 1st may also refer to:
*World record, specifically the first instance of a particular achievement
Arts and media Music
* 1$T, American rapper, singer-songwriter, DJ, and rec ...
, chartered in 1791 by
Alexander Hamilton
Alexander Hamilton (January 11, 1755 or 1757July 12, 1804) was an American military officer, statesman, and Founding Father who served as the first United States secretary of the treasury from 1789 to 1795.
Born out of wedlock in Charlest ...
. Its charter was not renewed in 1811. In 1816, the
Second Bank of the United States
The Second Bank of the United States was the second federally authorized Hamiltonian national bank in the United States. Located in Philadelphia, Pennsylvania, the bank was chartered from February 1816 to January 1836.. The Bank's formal name, ac ...
was chartered; its charter was not renewed in 1836, after President
Andrew Jackson
Andrew Jackson (March 15, 1767 – June 8, 1845) was an American lawyer, planter, general, and statesman who served as the seventh president of the United States from 1829 to 1837. Before being elected to the presidency, he gained fame as ...
campaigned heavily for its disestablishment. From 1837 to 1862, in the
Free Banking Era
This history of central banking in the United States encompasses various bank regulations, from early wildcat banking practices through the present Federal Reserve System.
1781–1836: Bank of North America and First and Second Bank of the Uni ...
, there was no formal central bank, and banks issued their own notes again. From 1862 to 1913, a system of national banks was instituted by the 1863
National Banking Act
The National Banking Acts of 1863 and 1864 were two United States federal banking acts that established a system of national banks, and created the United States National Banking System. They encouraged development of a national currency backed by ...
.
Federal Reserve Notes have been printed from Series 1914 in large-note format, and from
Series 1928 in modern-day (small-note) format. The latter dimensions originated from the size of the
Philippine peso
The Philippine peso, also referred to by its Tagalog name ''piso'' (Philippine English: , , plural pesos; tl, piso ; sign: ₱; code: PHP), is the official currency of the Philippines. It is subdivided into 100 ''sentimo'', also called ce ...
Silver Certificates issued in 1903 while
William Howard Taft
William Howard Taft (September 15, 1857March 8, 1930) was the 27th president of the United States (1909–1913) and the tenth chief justice of the United States (1921–1930), the only person to have held both offices. Taft was elected pr ...
served as Philippine governor-general under the United States colonial administration. In view of its highly successful run,
President Taft
William Howard Taft (September 15, 1857March 8, 1930) was the 27th president of the United States (1909–1913) and the tenth chief justice of the United States (1921–1930), the only person to have held both offices. Taft was elected pr ...
subsequently appointed a committee that reported favorably on the advantages and savings from adopting the dimensions of Philippine notes for use in the United States.
Final implementation of today's small-size format, however, only occurred in 1928.
Value
The authority of the Federal Reserve Banks to issue notes comes from the
Federal Reserve Act
The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States.
The Panic ...
of 1913. Legally, they are liabilities of the Federal Reserve Banks and obligations of the United States government. Although not issued by the
United States Treasury
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
, Federal Reserve Notes carry the (engraved) signature of the
Treasurer of the United States
The treasurer of the United States is an officer in the United States Department of the Treasury who serves as custodian and trustee of the federal government's collateral assets and the supervisor of the department's currency and coinage produc ...
and the
United States Secretary of the Treasury
The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
. The long vacancy of the Treasurer's position led to over a year's delay before a new currency series was produced in the
Biden Administration.
At the time of the Federal Reserve's creation, the law provided for notes to be redeemed to the Treasury in gold or "lawful money." The latter category was not explicitly defined, but included
United States Note
A United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for 109 years, they were issued for longer than any other form of U.S. paper money. They were k ...
s,
National Bank Note
National Bank Notes were United States currency banknotes issued by National Banks chartered by the United States Government. The notes were usually backed by United States bonds the bank deposited with the United States Treasury. In addition, ...
s, and certain other notes held by banks to meet
reserve
Reserve or reserves may refer to:
Places
* Reserve, Kansas, a US city
* Reserve, Louisiana, a census-designated place in St. John the Baptist Parish
* Reserve, Montana, a census-designated place in Sheridan County
* Reserve, New Mexico, a US vi ...
requirements, such as
clearing certificates. The
Emergency Banking Act
__NOTOC__
The Emergency Banking Act (EBA) (the official title of which was the Emergency Banking Relief Act), Public Law 73-1, 48 Stat. 1 (March 9, 1933), was an act passed by the United States Congress in March 1933 in an attempt to stabilize t ...
of 1933 removed the gold obligation and authorized the Treasury to satisfy these redemption demands with current notes of equal face value (effectively making change). Under the
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. The Bretto ...
, although citizens could not legally possess gold (except as rare coins, jewelry, for industrial purposes and the like), the federal government continued to maintain a stable international gold price. This system ended with the
Nixon Shock of 1971. Present-day Federal Reserve Notes are not backed by convertibility to any specific commodity, but only by the collateral assets that Federal Reserve Banks post in order to obtain them.
Large-size notes
Series 1914 FRN were the first of two large-size issues. Denominations were $5, $10, $20, $50, and $100 printed first with a red seal and then continued with a blue seal. Series 1918 notes were issued in $500, $1,000, $5,000, and $10,000 denominations. The latter two denominations exist only in institutional collections. Series 1914 and 1918 notes in the following two tables are from the
National Numismatic Collection
The National Numismatic Collection is the national coin cabinet of the United States. The collection is part of the Smithsonian Institution's National Museum of American History.
Overview
The National Numismatic Collection comprises approxima ...
at the
National Museum of American History
The National Museum of American History: Kenneth E. Behring Center collects, preserves, and displays the heritage of the United States in the areas of social, political, cultural, scientific, and military history. Among the items on display is t ...
(
Smithsonian Institution
The Smithsonian Institution ( ), or simply the Smithsonian, is a group of museums and education and research centers, the largest such complex in the world, created by the U.S. government "for the increase and diffusion of knowledge". Founded ...
).
Per the Treasury Department Appropriation Bill of 1929, notes issued 1928 and earlier were and later issues were to be , which allowed the Treasury Department to produce 12 notes per sheet of paper that previously would yield 8 notes at the old size.
Modern measurements of these large size notes reveal an average dimension of . Small size notes (described as such due to their size relative to the earlier large-size notes) are an average , the size of modern U.S. currency. Each measurement is ± to account for margins and cutting. (Note: differences in size may also involve in historical changes in the definition of the
inch
Measuring tape with inches
The inch (symbol: in or ″) is a unit of length in the British imperial and the United States customary systems of measurement. It is equal to yard or of a foot. Derived from the Roman uncia ("twelfth") ...
.)
Series 1914
Series 1918
Production and distribution
A
commercial
Commercial may refer to:
* a dose of advertising conveyed through media (such as - for example - radio or television)
** Radio advertisement
** Television advertisement
* (adjective for:) commerce, a system of voluntary exchange of products and s ...
bank that maintains a reserve account with the Federal Reserve can obtain notes from the Federal Reserve Bank in its district whenever it wishes. The bank must pay the face value of the notes by debiting (drawing down) its reserve account. Smaller banks without a reserve account at the Federal Reserve can maintain their reserve accounts at larger "correspondent banks" which themselves maintain reserve accounts with the Federal Reserve.
Federal Reserve Notes are printed by the
Bureau of Engraving and Printing
The Bureau of Engraving and Printing (BEP) is a government agency within the United States Department of the Treasury that designs and produces a variety of security products for the United States government, most notable of which is Federal Rese ...
(BEP), a bureau of the Department of the Treasury. When Federal Reserve Banks require additional notes for circulation, they must post
collateral
Collateral may refer to:
Business and finance
* Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan
* Marketing collateral, in marketing and sales
Arts, entertainment, and media
* ''Collate ...
in the form of direct federal obligations, private bank obligations, or assets purchased through
open market operations
In macroeconomics, an open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks. The central bank can either buy or sell government bonds (or other financial as ...
.
If the notes are newly printed, they also pay the BEP for the cost of printing (about 4¢ per note). This differs from the issue of
coin
A coin is a small, flat (usually depending on the country or value), round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order t ...
s, which are purchased for their face value.
A Federal Reserve Bank can retire notes that return from circulation, which entitles it to recover collateral that it posted for an earlier issue. Retired notes in good condition are held in the bank's vault for future issues. Notes in poor condition are destroyed and replacements are ordered from the BEP. The Federal Reserve shreds 7,000 tons of worn out currency each year.
As of 2018, Federal Reserve notes remain, on average, in circulation for the following periods of time:
The
Federal Reserve
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
does not publish an average life span for the $2 bill. This is likely due to its treatment as a collector's item by the general public; it is, therefore, not subjected to normal circulation.
Starting with the Series 1996 $100 note, bills $5 and above have a special letter in addition to the prefix letters which range from A-P. The first letter is A for series 1996; the first letter is B for series 1999; the first letter is C for series 2001; the first letter is D for series 2003; the first letter is F for series 2003A; the first letter is H for series 2006; and the first letter is K for series 2006A, L is for Series 2009 $100 bills, M is Series 2013, N is Series 2017 and P is Series 2017A. Series 2021 will likely use R.
The Series 2004 $20, the first note in the second redesign, has kept the element of the special double prefix. The first letter is E for series 2004; the first letter is G for series 2004A; the first letter is I for series 2006; the first letter is J for series 2009; the first letter is L for series 2009A; and the first letter is M for series 2013.
Federal Reserve Notes are made of 75% cotton and 25% linen fibers, supplied by
Crane Currency
Crane Currency is a manufacturer of cotton based paper products used in the printing of banknotes, passports, and other secure documents.
History
Stephen Crane was the first in the Crane family to become a papermaker, buying his first mill, "T ...
of
Dalton, Massachusetts
Dalton is a town in Berkshire County, Massachusetts. Dalton is a transition town between the urban and rural portions of Berkshire County. It is part of the Pittsfield, Massachusetts Metropolitan Statistical Area. The population was 6,330 at th ...
specifically for that purpose.
Nicknames
U.S. paper currency has had many nicknames and slang terms. The notes themselves are generally referred to as ''bills'' (as in "
five-dollar bill"). Notes can be referred to by the first or last name of the person on the portrait (
George
George may refer to:
People
* George (given name)
* George (surname)
* George (singer), American-Canadian singer George Nozuka, known by the mononym George
* George Washington, First President of the United States
* George W. Bush, 43rd Presid ...
for one dollar, or even more popularly, "
Benjamins" for
$100 notes).
*
Greenbacks, any amount in any denomination of Federal Reserve Note (from the green ink used on the back). The
Demand Note
A Demand Note is a type of United States paper money that was issued between August 1861 and April 1862 during the American Civil War in denominations of 5, 10, and 20 . Demand Notes were the first issue of paper money by the United States ...
s issued in 1861 had green-inked backs, and the Federal Reserve Note of 1914 copied this pattern.
*''Buck'' for a one-dollar bill
*''Fin'' is a slang term for a five-dollar bill, from Yiddish "finf" meaning five.
*''
Sawbuck
In woodworking, a sawbuck is a structure for holding wood so that it may be cut into pieces. Easily made in the field from rough material, it consists of an "X" form at each end which are joined by cross bars below the intersections of the X's. ...
'' is a slang term for a ten-dollar bill, from the image of the Roman numeral X and its resemblance to the carpentry implement.
* ''Double sawbuck'' is slang term for a twenty-dollar bill, from the image of the Roman numeral XX.
* One hundred dollar bills are sometimes called "Benjamins" (in reference to their portrait of
Benjamin Franklin
Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading inte ...
) or ''C-Notes'' (the letter "C" is the
Roman numeral
Roman numerals are a numeral system that originated in ancient Rome and remained the usual way of writing numbers throughout Europe well into the Late Middle Ages. Numbers are written with combinations of letters from the Latin alphabet, eac ...
100).
*''Dead presidents'', referring to the portraits that feature on the front of each bill. (Note that this colloquialism is partially incorrect; neither
Alexander Hamilton
Alexander Hamilton (January 11, 1755 or 1757July 12, 1804) was an American military officer, statesman, and Founding Father who served as the first United States secretary of the treasury from 1789 to 1795.
Born out of wedlock in Charlest ...
nor
Benjamin Franklin
Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading inte ...
, who appear on the ten-dollar and one hundred-dollar bills respectively, ever served as president.)
Criticisms
Security
Despite the relatively late addition of color and other anti-
counterfeiting features to U.S. currency, critics hold that it is still a straightforward matter to counterfeit these bills. They point out that the ability to reproduce color images is well within the capabilities of modern color
printers
Printer may refer to:
Technology
* Printer (publishing), a person or a company
* Printer (computing), a hardware device
* Optical printer for motion picture films
People
* Nariman Printer ( fl. c. 1940), Indian journalist and activist
* Jam ...
, most of which are affordable to many consumers. These critics suggest that the Federal Reserve should incorporate
holographic
Holography is a technique that enables a wavefront to be recorded and later re-constructed. Holography is best known as a method of generating real three-dimensional images, but it also has a wide range of other applications. In principle, i ...
features, as are used in most other major currencies, such as the
pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
,
Canadian dollar
The Canadian dollar ( symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style ...
and
euro banknotes
Banknotes of the euro, the common currency of the Eurozone (euro area members), have been in circulation since the first series (also called ''ES1'') was issued in 2002. They are issued by the national central banks of the Eurosystem or the Eur ...
, which are more difficult and expensive to forge. Another robust technology, the
polymer banknote
Polymer banknotes are banknotes made from a synthetic polymer such as biaxially oriented polypropylene (BOPP). Such notes incorporate many security features not available in paper banknotes, including the use of metameric inks. Polymer banknote ...
, has been developed for the
Australian dollar
The Australian dollar (sign: $; code: AUD) is the currency of Australia, including its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is officially used as currency by three independent Pacific Island s ...
and adopted for the
New Zealand dollar
The New Zealand dollar ( mi, tāra o Aotearoa; sign: $, NZ$; code: NZD) is the official currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and a British territory, the Pitcairn Islands. Within New ...
,
Romanian leu
The Romanian leu (, plural lei ; ISO code: RON; numeric code: 946) is the currency of Romania. It is subdivided into 100 (, singular: ), a word that means "money" in Romanian.
Etymology
The name of the currency means "lion", and is derive ...
,
Papua New Guinea kina,
Canadian dollar
The Canadian dollar ( symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style ...
, and other circulating, as well as commemorative, banknotes of a number of other countries. They are said to be more secure, cleaner and more durable than paper notes but that is not the case with U.S. banknotes which are already designed to be more durable than traditional cotton-based banknotes, circulation life shows this to be the case. One major issue with implementing these or any new counterfeiting countermeasures, however, is that (other than under
Executive Order 6102
Executive Order 6102 is an executive order signed on April 5, 1933, by US President Franklin D. Roosevelt "forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States." The executive order was ...
) the United States has never demonetized or required a mandatory exchange of any existing currency. Consequently, would-be counterfeiters can easily circumvent any new security features simply by counterfeiting older designs, although once a new design is launched, the older designs are usually withdrawn from circulation as they cycle through the Federal Reserve Banks.
U.S. currency does, however, bear several anti-counterfeiting features. Two of the most critical anti-counterfeiting features of U.S. currency are the paper and the ink. The ink and paper combine to create a distinct texture, particularly as the currency is circulated. The paper and the ink alone have no effect on the value of the dollar until post print. These characteristics can be hard to duplicate without the proper equipment and materials. Furthermore, recent redesigns of the $5, $10, $20, and $50 notes have added
EURion constellation
The EURion constellation (also known as Omron rings or doughnuts) is a pattern of symbols incorporated into a number of secure documents such as banknotes and ownership title certificates designs worldwide since about 1996. It is added to help ...
patterns which can be used by scanning software to recognize banknotes and refuse to scan them.
The differing sizes of other nations' banknotes is a security feature that eliminates one form of counterfeiting to which U.S. currency is prone: Counterfeiters can simply bleach the ink off a low-denomination note, such as a $1 or $5 bill, and reprint it as a higher-value note, such as a $100 bill. To counter this, the U.S. government has included in all $5 and higher denominated notes since the 1990 series a
security thread
A security thread is a security feature of many banknotes to protect against counterfeiting, consisting of a thin ribbon that is threaded through the note's paper.
Usually, the ribbon runs vertically, and is "woven" into the paper, so that it a ...
, which is a vertical laminate strip imprinted with denomination information. Under ultraviolet light, the security thread fluoresces a different color for each denomination ($5 note: blue; $10 note: orange; $20 note: green; $50 note: yellow; $100 note: red). Additionally the newly designed $100 launched in 2013 has a 3D security ribbon which has proven to be highly resistant to counterfeiting, yet easily understood by the public without special tools or lights.
According to the
central bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
s, the number of counterfeited bank notes seized annually is about 10 in one million of real bank notes for the
Swiss franc
The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the f ...
, of 50 in one million for the
Euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
, of 100 in one million for United States dollar and of 300 in one million for
pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
(old style).
Differentiation
Critics, such as the
American Council of the Blind
The American Council of the Blind (ACB) is a nationwide organization in the United States. It is an organization mainly made up of blind and visually impaired people who want to achieve independence and equality (although there are many sighted ...
, note that U.S. bills are relatively hard to tell apart: they use very similar designs, they are printed in the same colors (until the 2003 banknotes, in which a faint secondary color was added), and they are all the same size. The American Council of the Blind has argued
that American paper currency design should use increasing sizes according to value or raised or indented features to make the currency more usable by the
vision-impaired, since the denominations cannot currently be distinguished from one another non-visually. Use of
Braille
Braille (Pronounced: ) is a tactile writing system used by people who are visually impaired, including people who are Blindness, blind, Deafblindness, deafblind or who have low vision. It can be read either on Paper embossing, embossed paper ...
codes on currency is not considered a desirable solution because these markings would only be useful to people who know how to read Braille, and one Braille symbol can become confused with another if even one bump is rubbed off. Though some blind individuals say that they have no problems keeping track of their currency because they
fold their bills in different ways or keep them in different places in their
wallet
A wallet is a flat case or pouch often used to carry small personal items such as paper currency, credit cards; identification documents such as driver's license, identification card, club card; photographs, transit pass, business cards and oth ...
s, they nevertheless must rely on sighted people or
currency-counting machine
A currency-counting machine is a machine that counts money—either stacks of banknotes or loose collections of coins. Counters may be purely mechanical or use electronic components. The machines typically provide a total count of all money, or ...
s to determine the value of each bill before filing it away using the system of their choice. This means that no matter how organized they are, blind people still have to trust sighted people or machines each time they receive U.S. banknotes.
By contrast, other major currencies, such as the
pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
and
euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
, feature notes of differing sizes: the size of the note increases with the denomination and different denominations are printed in different, contrasting colors. This is useful not only for the vision-impaired; they nearly eliminate the risk that, for example, someone might fail to notice a high-value note among low-value ones.
Multiple currency sizes were considered for U.S. currency, but makers of
vending
A vending machine is an automated machine that provides items such as snacks, beverages, cigarettes, and lottery tickets to consumers after cash, a credit card, or other forms of payment are inserted into the machine or otherwise made. The fir ...
and
change machine
A change machine is a vending machine that accepts large denominations of currency and returns an equal amount of currency in smaller bills or coins. Typically these machines are used to provide coins in exchange for paper currency, in which ca ...
s successfully argued that implementing such a wide range of sizes would greatly increase the cost and complexity of such machines. Similar arguments were unsuccessfully made in Europe prior to the introduction of multiple note sizes.
Alongside the contrasting colors and increasing sizes, many other countries' currencies contain tactile features missing from U.S. banknotes to assist the blind. For example, Canadian banknotes have a series of
raised dots (not Braille) in the upper right corner to indicate denomination.
Mexican peso
The Mexican peso (Currency symbol, symbol: $; ISO 4217, code: MXN) is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 16th–19th century Spanish dollar, most continuing to use dollar sign, its sign, "$".
...
banknotes also have raised patterns of dashed lines. The
Indian rupee
The Indian rupee ( symbol: ₹; code: INR) is the official currency in the republic of India. The rupee is subdivided into 100 ''paise'' (singular: ''paisa''), though as of 2022, coins of denomination of 1 rupee are the lowest value in use wh ...
has raised patterns of different shapes printed for various denominations on the left of the watermark window (20: vertical rectangle; 50: square; 100: triangle; 500: circle; 1,000: diamond).
Suit by the blind over U.S. banknote design
Ruling on a lawsuit filed in 2002 (''
American Council of the Blind
The American Council of the Blind (ACB) is a nationwide organization in the United States. It is an organization mainly made up of blind and visually impaired people who want to achieve independence and equality (although there are many sighted ...
v. Paulson''), on November 28, 2006, U.S. District Judge
James Robertson ruled that the American bills gave an undue burden to the blind and denied them "meaningful access" to the U.S. currency system. In his ruling, Robertson noted that the United States was the only nation out of 180 issuing paper currency that printed bills that were identical in size and color in all their denominations and that the successful use of such features as varying sizes, raised lettering and tiny perforations used by other nations is evidence that the ordered changes are feasible. The
plaintiff
A plaintiff ( Π in legal shorthand) is the party who initiates a lawsuit (also known as an ''action'') before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of the p ...
's attorney was quoted as saying "It's just frankly unfair that blind people should have to rely on the good faith of people they have never met in knowing whether they've been given the correct change."
Government attorneys estimated that the cost of such a change ranges from $75 million in equipment upgrades and $9 million annual expenses for punching holes in bills to $178 million in one-time charges and $50 million annual expenses for printing bills of varying sizes.
Robertson accepted the plaintiff's argument that current practice violates Section 504 of the
Rehabilitation Act
The Rehabilitation Act of 1973 () is a United States federal law, codified at et seq. The principal sponsor of the bill was Rep. John Brademas (D-IN-3). The Rehabilitation Act of 1973 replaces preexisting laws (collectively referred to as the V ...
.
The judge ordered the
United States Department of the Treasury
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
to begin working on a redesign within 30 days,
but the Treasury appealed the decision.
On May 20, 2008, in a 2-to-1 decision, the
upheld the earlier ruling, pointing out that the cost estimates were inflated and that the burdens on blind and visually impaired currency users had not been adequately addressed.
On October 3, 2008, on remand from the D.C. Circuit, D.C. District Court Judge Robertson granted the injunction.
As a result of the court's injunction, the
Bureau of Engraving and Printing
The Bureau of Engraving and Printing (BEP) is a government agency within the United States Department of the Treasury that designs and produces a variety of security products for the United States government, most notable of which is Federal Rese ...
is planning to implement a raised tactile feature in the next redesign of each note, except the $1 bill (which is not allowed to be redesigned, ), though the version of the $100 bill already is in progress. It also plans larger, higher-contrast numerals, more color differences, and distribution of currency readers to assist the visually impaired during the transition period. The Bureau received a comprehensive study on accessibility options in July 2009, and solicited public comments from May to August 2010.
Legal authorizations for currency, and limitations on design
The Secretary of the Treasury is charged with the obligation to produce currency and bonds.
31 U.S.C. § 5114 Treasury Department regulations further specify the quality of paper and ink to be used.
31 C.F.R. Part 601 The denominations and design of currency are not further specified by law; for example, the choice of $1, $5, $10, $20, $50, and $100, and the portraits on each, are largely left to the discretion of the Secretary of the Treasury.
There are few requirements set by Congress. The national motto "
In God We Trust
"In God We Trust" (also rendered as "In God we trust") is the United States national motto, official motto of the United States and of the U.S. state of Florida. It was adopted by the U.S. Congress in 1956, replacing ("Out of many, one"), whic ...
" must appear on all U.S. currency and coins.
Though the motto had periodically appeared on coins since 1865, it did not appear on currency (other than interest-bearing notes in 1861) until a law passed in 1956 required it. It began to appear on Federal Reserve Notes delivered from 1964 to 1966, depending on denomination.
The portraits appearing on the U.S. currency can feature only people who have died, whose names should be included below each of the portraits.
Since the standardization of the bills in 1928, the Department of the Treasury has chosen to feature the same portraits on the bills. These portraits were decided upon in 1929 by a committee appointed by the Treasury. Originally, the committee had decided to feature U.S. presidents because they were more familiar to the public than other potential candidates. The Treasury altered this decision, however, to include three statesmen who were also well known to the public:
Alexander Hamilton
Alexander Hamilton (January 11, 1755 or 1757July 12, 1804) was an American military officer, statesman, and Founding Father who served as the first United States secretary of the treasury from 1789 to 1795.
Born out of wedlock in Charlest ...
(the first
Secretary of the Treasury
The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
who appears on the $10 bill),
Salmon P. Chase
Salmon Portland Chase (January 13, 1808May 7, 1873) was an American politician and jurist who served as the sixth chief justice of the United States. He also served as the 23rd governor of Ohio, represented Ohio in the United States Senate, a ...
(the Secretary of the Treasury during the
American Civil War
The American Civil War (April 12, 1861 – May 26, 1865; also known by other names) was a civil war in the United States. It was fought between the Union ("the North") and the Confederacy ("the South"), the latter formed by states th ...
who appeared on the now obsolete $10,000 bill), and
Benjamin Franklin
Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading inte ...
(a signer of the Declaration of Independence and of the Constitution, who appears on the $100 bill). In 2016, the Treasury announced a number of design changes to the $5, $10 and $20 bills; to be introduced over the next ten years. The redesigns include:
* The back of the $5 bill will be changed to showcase historical events at the pictured
Lincoln Memorial
The Lincoln Memorial is a U.S. national memorial built to honor the 16th president of the United States, Abraham Lincoln. It is on the western end of the National Mall in Washington, D.C., across from the Washington Monument, and is in the ...
by adding portraits of
Marian Anderson
Marian Anderson (February 27, 1897April 8, 1993) was an American contralto. She performed a wide range of music, from opera to Spiritual (music), spirituals. Anderson performed with renowned orchestras in major concert and recital venues throu ...
(due to her famous performance there after being barred from
Constitution Hall
DAR Constitution Hall is a concert hall located at 1776 D Street NW, near the White House in Washington, D.C. It was built in 1929 by the Daughters of the American Revolution to house its annual convention when membership delegations outgrew Memo ...
because of her race),
Martin Luther King Jr.
Martin Luther King Jr. (born Michael King Jr.; January 15, 1929 – April 4, 1968) was an American Baptist minister and activist, one of the most prominent leaders in the civil rights movement from 1955 until his assassination in 1968 ...
(due to his famous
I Have A Dream
"I Have a Dream" is a public speech that was delivered by American civil rights activist and Baptist minister, Martin Luther King Jr., during the March on Washington for Jobs and Freedom on August 28, 1963. In the speech, King called ...
speech), and
Eleanor Roosevelt
Anna Eleanor Roosevelt () (October 11, 1884November 7, 1962) was an American political figure, diplomat, and activist. She was the first lady of the United States from 1933 to 1945, during her husband President Franklin D. Roosevelt's four ...
(who arranged Anderson's performance).
* The back of the $10 bill will be changed to show a 1913 march for women's
suffrage
Suffrage, political franchise, or simply franchise, is the right to vote in representative democracy, public, political elections and referendums (although the term is sometimes used for any right to vote). In some languages, and occasionally i ...
in the United States, plus portraits of
Sojourner Truth
Sojourner Truth (; born Isabella Baumfree; November 26, 1883) was an American abolitionist of New York Dutch heritage and a women's rights activist. Truth was born into slavery in Swartekill, New York, but escaped with her infant daughter to f ...
,
Lucretia Mott
Lucretia Mott (''née'' Coffin; January 3, 1793 – November 11, 1880) was an American Quaker, abolitionist, women's rights activist, and social reformer. She had formed the idea of reforming the position of women in society when she was amongs ...
,
Susan B. Anthony
Susan B. Anthony (born Susan Anthony; February 15, 1820 – March 13, 1906) was an American social reformer and women's rights activist who played a pivotal role in the women's suffrage movement. Born into a Quaker family committed to s ...
,
Alice Paul
Alice Stokes Paul (January 11, 1885 – July 9, 1977) was an American Quaker, suffragist, feminist, and women's rights activist, and one of the main leaders and strategists of the campaign for the Nineteenth Amendment to the U.S. Constitution, ...
, and
Elizabeth Cady Stanton
Elizabeth Cady Stanton (November 12, 1815 – October 26, 1902) was an American writer and activist who was a leader of the women's rights movement in the U.S. during the mid- to late-19th century. She was the main force behind the 1848 Seneca ...
.
* On the $20 bill,
Andrew Jackson
Andrew Jackson (March 15, 1767 – June 8, 1845) was an American lawyer, planter, general, and statesman who served as the seventh president of the United States from 1829 to 1837. Before being elected to the presidency, he gained fame as ...
will move to the back (reduced in size, alongside the White House) and
Harriet Tubman
Harriet Tubman (born Araminta Ross, March 10, 1913) was an American abolitionist and social activist. Born into slavery, Tubman escaped and subsequently made some 13 missions to rescue approximately 70 slaves, including family and friends, us ...
will appear on the front.
After an unsuccessful attempt in the proposed
Legal Tender Modernization Act of 2001, the
Omnibus Appropriations Act of 2009 required that none of the funds set aside for either the Treasury or the Bureau of Engraving and Printing may be used to redesign the $1 bill. This is because any change would affect vending machines and the risk of counterfeiting is low for this small denomination. This superseded the
Federal Reserve Act
The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States.
The Panic ...
(Section 16, Paragraph 8) which gives the Treasury permission to redesign any banknote to prevent counterfeiting.
Series detail
Series overview
Series 1914 (district seals)
File:Federal Reserve Note Seal (Boston).tif, Federal Reserve Bank of Boston
File:Federal Reserve Note Seal (New York).tif, Federal Reserve Bank of New York
The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is responsible for the Second District of the Federal Reserve System, which encompasses the State of New York, the 12 northern counties of New ...
File:Federal Reserve Note Seal (Philadelphia).tif, Federal Reserve Bank of Philadelphia
The Federal Reserve Bank of Philadelphia — also known as the Philadelphia Fed or the Philly Fed — headquartered at 10 Independence Mall in Philadelphia, Pennsylvania, is responsible for the Third District of the Federal Reserve, which covers ...
File:Federal Reserve Note Seal (Cleveland).tif, Federal Reserve Bank of Cleveland
The Federal Reserve Bank of Cleveland is the Cleveland-based headquarters of the U.S. Federal Reserve System's Fourth District. The district is composed of Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia. ...
File:Federal Reserve Note Seal (Richmond).tif, Federal Reserve Bank of Richmond
The Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve located in Richmond, Virginia. It covers the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia ...
File:Federal Reserve Note Seal (Atlanta).tif, Federal Reserve Bank of Atlanta
The Federal Reserve Bank of Atlanta, (informally referred to as the Atlanta Fed and the Bank), is the sixth district of the 12 Federal Reserve Banks of the United States and is headquartered in midtown Atlanta, Georgia.
The Atlanta Fed cover ...
File:Federal Reserve Note Seal (Chicago).tif, Federal Reserve Bank of Chicago
The Federal Reserve Bank of Chicago (informally the Chicago Fed) is one of twelve regional Reserve Banks that, along with the Federal Reserve Board of Governors, make up the United States' central bank.
The Chicago Reserve Bank serves the Sevent ...
File:Federal Reserve Note Seal (St. Louis).tif, Federal Reserve Bank of St. Louis
The Federal Reserve Bank of St. Louis is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, D.C., make up the United States' central bank. Missouri is the only state to have two main Federal Reserve Banks (Ka ...
File:Federal Reserve Note Seal (Minneapolis).tif, Federal Reserve Bank of Minneapolis
Federal or foederal (archaic) may refer to:
Politics
General
*Federal monarchy, a federation of monarchies
*Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...
File:Federal Reserve Note Seal (Kansas City).tif, Federal Reserve Bank of Kansas City
The Federal Reserve Bank of Kansas City is located in Kansas City, Missouri and covers the 10th District of the Federal Reserve, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexic ...
File:Federal Reserve Note Seal (Dallas).tif, Federal Reserve Bank of Dallas
The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico, a district sometimes referred to as the Oil Patch.
The Federal Reserve Bank of Dallas is one of 12 ...
File:Federal Reserve Note Seal (San Francisco).tif, Federal Reserve Bank of San Francisco
The Federal Reserve Bank of San Francisco (informally referred to as the San Francisco Fed) is the federal bank for the twelfth district in the United States. The twelfth district is made up of nine western states—Alaska, Arizona, California, ...
Series 1928–1995
Series 1996–2003 (new currency design)
Note: The series 2006A was produced from 2011 to 2013 due to issues with the printing process for the colorized (NextGen) $100 notes.
Post-2004 redesigned series
Beginning in 2003, the Federal Reserve introduced a new series of bills, featuring images of national symbols of freedom. The new $20 bill was first issued on October 9, 2003; the new $50 on September 28, 2004; the new $10 bill on March 2, 2006; the new $5 bill on March 13, 2008; the new $100 bill on October 8, 2013. The one and two dollar bills still remain small portrait, unchanged, and not watermarked.
All small-sized bills measure , with thickness of .
While the series 2009A was the first series of these $100 bills released for circulation, the first printing was series 2009 printed in 2010 and 2011. These were withheld from circulation due to issues with the printing process and none were released until 2016.
See also
*
Coins of the United States dollar
Coins of the United States dollar (aside from those of the earlier Continental currency) were first minted in 1792. New coins have been produced annually and they make up a valuable aspect of the United States currency system. Today, circulating ...
References
Citations
General and cited sources
* ''This article incorporates text from the website of th
US Treasury which is in the public domain.''
*
* Jakab, Z.; Kumhof, M. (2015)
''Banks are not Intermediaries of Loanable Funds - And Why this Matters'' Bank of England. Retrieved February 1, 2021.
External links
Bureau of Engraving and PrintingThe Federal Reserve Board
'Grand' referring to $1,000 (Word-Detective.com)Know Your Money2016 guide by the Secret Service about the features of the newer notes
{{Federal Reserve System
Banknotes of the United States
Note
Note, notes, or NOTE may refer to:
Music and entertainment
* Musical note, a pitched sound (or a symbol for a sound) in music
* ''Notes'' (album), a 1987 album by Paul Bley and Paul Motian
* ''Notes'', a common (yet unofficial) shortened version ...