1934 Small Size Federal Reserve Note // $500 & $1000 Denominations // PMG Certified Very Fine

Federal Reserve Notes (FRNs) are the only form of banknotes currently produced in the United States. Offered here is a set of 2 high denomination notes that include the very popular $500 and $1000 denominations. You will receive the unique items shown in the photos certified by PMG and including a certificate of authenticity.

Federal Reserve Notes (FRNs) were first authorized by Section 16 of the Federal Reserve Act of 1913 and are issued to the Federal Reserve Banks at the discretion of the Board of Governors of the Federal Reserve System. The notes are then placed into circulation by the Banks, at which point they become liabilities of the Federal Reserve Banks and obligations of the United States. FRNs are legal tender and bear the obligation "this note is legal tender for all debts, public and private" printed on each note. They replaced United States Notes, which were once issued by the Treasury Department. FRNs are backed by the assets of the Federal Reserve Banks, which serve as collateral under Section 16. These assets are generally Treasury securities which have been purchased by the Federal Reserve through its Federal Open Market Committee in a process called debt monetizing.