Buying, Selling & Redeeming
I have some currency that was damaged. My bank will not exchange it for undamaged currency. What can I do?
How do I purchase sheets of uncut paper currency through the mail?
Does the Treasury Department sell shredded paper currency? Where can I buy it?
I have an old currency note. Can you tell me what it is worth? I would like to sell it.
I have a $1,000 currency note from the Bank of the United States. It is dated December 15, 1840 and has the serial number "8894." Can you tell me what it is worth now and where I can cash it in?
I have some old silver certificates. How can I trade them in for silver dollars?
I have some old gold certificates and would like to trade them in for gold. What should I do?
Complete information on how to handle mutilated currency is available through the Office of Currency Standards at the Bureau of Engraving and Printing.
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The Bureau of Engraving and Printing (BEP) has been selling uncut sheets of currency since October 26, 1981. These sheets and other currency related products can be purchased online at the BEP’s web site, www.moneyfactory.gov. Information on how to order by phone or fax is also available at that site.
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Yes. The Bureau of Engraving and Printing (BEP) destroys currency notes that are found to be imperfect during the printing process. The BEP packages small bags of shredded currency from the destroyed new currency, and sells these bags as mementos to visitors at the BEP's Washington , DC and Fort Worth , TX Visitor Centers. The BEP also sells five pound bags of shredded currency through the mail. Orders can be placed on the BEP's website, www.moneyfactory.gov or by calling 1-800-456-3408.
The Federal Reserve System destroys worn currency notes at some of its various banks located throughout the country. Shredded currency is available only from certain Federal Reserve Banks. They sell it only under contract to buyers who will purchase the entire residue for at least a one year period. It is not readily available for distribution or for sale in small quantities to individuals because of operational difficulties and excessive administrative work for Federal Reserve Banks.
The Treasury Department approves the use of shredded currency in certain circumstances. One permitted use is recycling it (mixing it with other materials) to form a useful manufactured product such as roofing shingles or insulation. In addition, the shredded currency may be placed in firmly sealed containers as novelty items like pens, ornaments and jewelry. However, the Treasury will allow companies or other parties to sell the shredded currency in its original form or where it is readily not recoverable.
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The Treasury Department does not render opinions concerning the numismatic value of currency notes, and will redeem only those notes issued by the United States Government. Any such redemption would be only at the face value of the notes. If you wish to have the currency mentioned in your letter appraised, We can only suggest that you contact several currency collectors and dealers. Listings are available in the telephone directory under the headings of COINS and HOBBIES.
Currency dealers and collectors consider the condition, series date, denomination, production totals, and other factors when evaluating currency notes to figure out their numismatic value. Each note is different from every other. In addition, grading is not an exact science, varying from dealer to dealer. Therefore, it is possible to have the same note appraised at different values. There is sometimes a wide range (both above and below the market price) in the values that they quote when buying and selling currency notes. This also may be due to the dealer's current inventory and the availability of similar notes in the marketplace.
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Currency notes from the Bank of the United States are something that we have seen many times. Our office receives many inquiries concerning the authenticity of these notes. It is important to note, first, that the Treasury Department did not issue notes intended for circulation as currency until 1862. This being the case, these notes are not obligations of the United States Government.
You may be interested in a brief history of the Bank of the United States. Our research has shown that the "first" Bank of the United States was founded in 1791 and existed until 1811; the "second" bank operated from 1816-1836. The United States Government held 20 percent of the Bank stock, named five of the 25 trustees, and granted the charter to the Bank.
In 1836, however, President Andrew Jackson vetoed a bill to renew the Bank's charter, withdrew United States Treasury funds from the Bank, and ceased all United States Government involvement in the Bank's operations. In 1837, the trustees of the Bank secured a charter from the State of Pennsylvania. Then, they paid the United States Government for its outstanding interest and swapped old stock for new stock on a one-to-one share basis. The Bank's name changed to the Bank of the United States of Pennsylvania.
After 1837, the history of the Bank was very rocky. On February 4, 1841, the Bank closed its doors. This action left many creditors, including the London Merchant Bank, Baring Brothers, and the Rothschild family, with over $25 million in claims. They were lucky to receive one-third value for their claims.
Because the Treasury Department did not issue these notes, we have no way of verifying their authenticity or figuring out their value. It is likely, though, that the is part of a series of antiqued reproductions issued in various denominations and forms for use in advertising campaigns. The most popular of these bear the serial number 8894. These notes are so widespread that they were the subject of an August 5, 1970, article in COIN WORLD.
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On March 25, 1964, C. Douglas Dillon, the 57th Secretary of the Treasury announced that silver certificates would no longer be redeemable in silver dollars. This decision was pursuant to the Act of June 4, 1963 (31 U.S.C. 405a-1). The Act allowed the exchange of silver certificates for silver bullion until June 24, 1968. This was the deadline set by the Congress. Since that date, there has been no obligation to issue silver in any form in exchange for these certificates. You may be interested to know that the Congress took this action because there were approximately three million silver dollars remaining in the Treasury Department's vaults. These coins had high numismatic values, and there was no way to make an equitable distribution of them among the many people holding silver certificates.
Silver certificates are still legal tender and do still circulate at their face value. Depending upon the age and condition of the certificates, however, they may have a numismatic value to collectors and dealers.
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Gold certificates were withdrawn from circulation along with all gold coins and gold bullion as required by the Gold Reserve Act of 1934. Gold certificates circulated until December 28, 1933. That is when the President ordered private owners of gold certificates to deliver their notes to the Treasurer of the United States by midnight on January 17, 1934. It was then illegal to hold gold certificates. C. Douglas Dillon, the 57th Secretary of the Treasury, removed the restrictions on the acquisition or holding of these notes on April 24, 1964.
Under 31 U.S.C. 5118(b) as amended, "The United States Government may not pay out any gold coin. A person lawfully holding United States coins and currency may present the coins for currency . . . for exchange (dollar for dollar) for other United States coins and currency (other than gold and silver coins) that . . ." citizens may lawfully own. Although gold certificates are no longer produced and are not redeemable in gold, they still maintain their legal tender status. You may redeem the notes you have through the Treasury Department or any financial institution. The redemption, however, will be at the face value on the note. These notes may, however, have a "premium" value to coin and currency collectors or dealers.
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Last Updated:
June 25, 2007
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I have some currency that was damaged. My bank will not exchange it for undamaged currency. What can I do?
