Federal Reserve Notes Still Redeemable?
Here is an example of a federal reserve note, it should look familiar (note the inscription on the top front):
Below is the text of Title 12, Section 411 of the U.S. Code:
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
I’ve found at least one person who has actually called the Fed and sought redemption, only to be told that nobody knows what it means (Read SLV’s posts as he calls around). One Federal Reserve contact person explained that it might mean redemption in coin, such as nickels, or redemption in treasury bills. Hilarious. Others think they’ll just exchange your reserve notes for other reserve notes.
Can anybody explain what that last sentence means?
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