1950-E $10 Small Size Federal Reserve Star Note Chicago // PMG Certified Choice Uncirculated 64 EPQ

Federal Reserve Notes (FRNs) are the only banknotes currently produced in the United States. They 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.

Series 1914 FRNs were the first of two large-size issues. Denominations were $5, $10, $20, $50, and $100, printed initially with a red seal and then later with a blue seal. Series 1918 notes were issued in $500, $1,000, $5,000, and $10,000 denominations. The 1914 and 1918 series notes measured approximately 7.4 x 3.1 inches. Notes of this era were often referred to as “horse blankets” due to their large size. As a cost-cutting measure, the size of FRNs was reduced in 1929 to the present-day smaller dimensions.

This note has the distinction of being a replacement note, or “star note.” When notes are found to be damaged or printed incorrectly, the misprinted error notes are replaced with notes bearing the same serial number, but with a star symbol replacing the first or last letter. They are used to maintain a correct count of notes in a serial number run. By their nature, star notes are scarcer than standard notes and are often sought after by collectors.

The product offered for sale in this listing has been certified by one or more professional certification services, so you can be confident in the authenticity and stated condition.