1977 $5 Federal Reserve Note // Obstructed Printing Error // PMG Certified About Uncirculated 53

Despite exquisite quality control at the U.S. Bureau of Engraving and Printing, numerous errors are known to occur during the printing and production of paper money. These error notes are typically discovered and destroyed by inspectors. In an exceedingly small number of instances, however, error notes escape recognition and enter circulation.

Approximately two dozen distinct types of paper money errors exist, some of which can be quite bizarre and very rare. Offered here is a 1977 $5 note showing an “obstructed printing error” on the front side. This occurs when stray material comes between the blank currency sheet and printing plate, blocking ink transfer in the area of obstruction. The obstructing material typically falls away after printing, but in rare instances it is recovered along with the host note. In the example offered here, the obstruction occurred following the printing of the front border (second printing) and before the printing of the serial number and seals (third printing). You will receive the remarkably unique note shown in the photos, accompanied by a certificate of authenticity.

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.

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.