1999 Small Size $5 Federal Reserve Notes // BEP $500 Pack of 100 Sequential Serial Number Star Notes

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. Offered here is an original banded pack of 100 1999 Series $5 Federal Reserve Notes from the United States Bureau of Engraving and Printing. The notes are in choice crisp uncirculated condition and have sequential serial numbers. In addition, they are star notes, which are used by the BEP to replace misprinted or damaged currency. The replacement notes are printed in the same fashion as other notes, except there is a start printed at the end of the serial number. Star notes tend to be scarce are generally of greater interest to collectors. You will receive the unique pack of notes shown in the photos, accompanied by a certificate of authenticity.