People take money seriously, and so do most countries. This has certainly been historically true for the United States. Over the course of issuing paper money, U.S. currency has been printed for several specific purposes. For example, gold and silver certificates were redeemable for specific amounts of the precious metals until the government changed its mind—in 1934 for gold and 1968 for silver.
U.S. Red Seal Notes
United States Notes, also known as Red Seal Notes, were first issued as promissory demand notes in the summer of 1861 to finance the Civil War. A scant few months later, the demand provision was dropped, creating the first “fiat” currency in the U.S. After the war ended in 1865, the Treasury began issuing gold certificates, followed by silver certificates in 1886 that were redeemable in in those metals until the practice was discontinued. But the Red Seal notes remained in circulation and were widely used up until the mid-20th century.
The 1928 $1 Red Seal
One Red Seal note of particular interest is the 1928 $1 bill. While it was legal currency for most purposes, it couldn’t be used for paying import duties or interest on the public debt, made clear by the inscription on its face, “This note is legal tender for all debts, public and private, except for duties on imports and interest on the public debt.” That was because it was considered bad fiscal policy to repay certain obligations with fiat money that was already part of the national debt.
Under 2 million of the Series 1928 $1 Red Seals were printed, and even then, not until 1933. Only 5,000 were released in the U.S. with the vast majority remaining in storage at the Treasury. The inventory was finally released in Puerto Rico in 1948-49. It was also one of the last notes to be printed with the “horse blanket” design on its back, often called the “Funny Back.”
Rarity Makes It a Popular Collectible
Because so few of these notes were printed and were not in wide circulation, the 1928 $1 Red Seal Funny Back note has become very popular with collectors, with top-graded specimens selling for hundreds of dollars.
The Great American Coin Company is pleased to offer the 1928 Red Seal $1 Funny Back Federal Reserve Notein both circulated and uncirculated condition. These notes are among the most collectible and rare United States Federal Reserve Notes ever printed! Call us at 855-644-2242 to learn more.