TREASURY OR COIN NOTES

These notes were issued as a result of the Legal Tender Act of July 14, 1890. This Act authorized the Secretary of the Treasury to issue these notes in payment for silver bullion purchased by the Treasury Department. The entire issue of these notes thus became backed by metallic reserves. The notes were redeemable in actual coin, but whether silver or gold coin should be paid out was left to the discretion of the Secretary of the Treasury.

The coin notes were issued in denominations of 1, 2, 5, 10, 20, 50, 100, and 1,000 Dollars of the series of 1890 and 1891. A 500 Dollar note with portrait of General Sherman was also authorized and a plate made, but only a proof impression of the note is known; it was not placed in circulation.

The notes of the 1890 Series are especially attractive because of the intricate designs on the reverse. The 1890 notes are all rare today, especially in new condition.

The obligation on the Treasury or Coin Notes is as follows: “The United States of America will pay to bearer ...... Dollars in coin ... This note is a legal tender at its face value in payment of all debts public and private except when otherwise expressly stipulated in the contract.”