Banknotes of the Federal Reserve Bank of 1918

During World War I, when Americans hoarded gold and made it difficult for the government to maintain the supply of gold coins, the US issued the original Federal Reserve Banknotes (FRBN). Unlike previous Federal Reserve notes, FRBNs were obligations of one of the 12 district banks rather than the Federal Reserve System as a whole. They were printed using the national banknote template.

The original FRBNs were Series 1915. Most were larger than previous Federal Reserve Notes. They featured the portraits on the left side rather than in the center, and had a blue treasure seal. Small size FRBNs were also printed, but only a few were distributed. Therefore, they are valuable to old money traders.

Denominations

The first FRBNs were issued in denominations of $ 5 to $ 20. With the printing of the Series 1918, denominations of $ 1 and $ 2 were added to replace the Silver Certificates, and a $ 50 note was also introduced. District banks now printed the banknotes, although not all banks printed all denominations. The new obligation on the notes read: “Secured by United States bonds or United States debt certificates or United States one-year gold promissory notes deposited with the United States Treasurer.”

• The $ 1 denomination features George Washington on the left side of the bill. The back shows a flying eagle holding an American flag. The current value depends on the status of the invoice.
• The 1918 $ 2 bill, known as the “battleship bill,” features Thomas Jefferson on the front and a battleship on the back of each bill. They have a variety of firms and districts.
• The $ 5 bill, with Abraham Lincoln on the front, is not as valued as the other denominations.
• The $ 10 denomination bill, featuring Andrew Jackson, is particularly rare and valuable, with the exact value based on the issuing district and whether or not it is a star bill. Star bills are worth more money to rare paper money collectors.
• The $ 20 bill, which features a profile picture of Grover Cleveland, was only issued by a few districts. Since not many were printed, they are rare and valuable.
• The $ 50 bill with Ulysses S. Grant was only issued by the district of St. Louis. A few dozen of these exist in high grades.

The 1918 FRBNs are rare because the United States Treasury withdrew them after the war ended. Replacement star bills are the most difficult to find and are sought after by rare currency traders.

According to Numismatic news, “[t]The Federal Reserve Bank note did not suddenly become rare and interesting. Rather, it is that many [collectors] I just suddenly discovered that large and small size Federal Reserve banknotes are rare and interesting. “