What is a 1929 brown seal bill?
It's a type of money that existed for only a short time. In early 1933, with banks failing and people hoarding cash, the government needed more currency in a hurry. The BEP took paper stock it had already printed for Series 1929 National Bank notes and adapted it, putting the names of the twelve Federal Reserve Banks where a local bank's name would normally go. The result was the Federal Reserve Bank note.
Like National Bank notes, they were backed by US government bonds. The front says they are secured by United States bonds deposited with the Treasurer, with the words OR BY LIKE DEPOSIT OF OTHER SECURITIES added. Small-size Federal Reserve Bank notes were discontinued in the 1930s and haven't been paid out by banks since 1945.
Designs on Series 1929 Federal Reserve Bank notes
| Denomination | Portrait | Back |
|---|---|---|
| $5 | Abraham Lincoln | Lincoln Memorial |
| $10 | Alexander Hamilton | US Treasury Building |
| $20 | Andrew Jackson | The White House |
| $50 | Ulysses S. Grant | US Capitol |
| $100 | Benjamin Franklin | Independence Hall |
How do I read one?
Across the top you'll see NATIONAL CURRENCY, which confuses a lot of people. Below that is the name of a Federal Reserve Bank, such as the Federal Reserve Bank of Chicago, with its city and state. Each serial number begins with the bank's district letter. SERIES OF 1929 is printed on the face.
Look at the signatures. Two engraved signatures belong to the Treasury: E. E. Jones as Register of the Treasury and W. O. Woods as Treasurer of the United States. Two more signatures belong to officers of the issuing Federal Reserve Bank and their titles vary from bank to bank. The seal and both serial numbers are brown.
Brown seal notes that aren't Federal Reserve Bank notes
Two other kinds of small-size notes carry a brown seal and it's easy to mix them up.
- Series 1929 National Bank notes look very similar but name a local national bank, such as a First National Bank and carry its charter number. They are a separate collecting field, valued largely by the bank and town.
- HAWAII overprint notes from World War II are mostly Federal Reserve notes (the $1 is a silver certificate) with a brown seal and the word HAWAII printed on both sides. They were issued so the money could be declared worthless if the islands were captured.
Which ones are worth more?
The denomination and the issuing bank matter most. Not every bank issued every denomination. The $50 and $100 came from only some of the banks and some bank and denomination combinations were printed in small numbers. Most notes that turn up are $5, $10 or $20 from the larger banks and those are the common ones.
Then comes condition. These notes saw real use in 1933 and many survivors are folded and soft. A crisp, unfolded note sits well above a worn one. Star notes, marked with a star in the serial number, exist and are scarce. Low serial numbers attract collectors as well, since these notes were numbered by bank and a very low number shows an early note in that bank's run.
How does the grade work?
Count the folds and feel the paper. A note that has been folded many times and has gone soft is well circulated. A note with a few folds and good body is lightly circulated. One with no folds at all and crisp, original paper is uncirculated. Look also at the brown ink of the seal and serials, which should be even and at the margins, which should show on all four sides.
Damage counts against a note in every grade. Tears, holes, missing corners, tape, ink writing and heavy stains all lower the band a note belongs in.
Is it still legal tender?
Yes. Federal Reserve Bank notes were legal tender banknotes with the same value as other notes of the same denomination and a bank will still accept them at face value. That's the floor. Collectors pay more for nearly every example, so don't spend one.
What should I do with one?
Write down the bank name, denomination and serial number and photograph both sides. Then store the note flat in a sleeve. A dealer who handles small-size notes will know which bank and denomination combinations are scarce. If you have several, keep them grouped by bank; a set of notes from one district is easier to sell as a group. Ask about grading for any crisp note, star or low serial.
Frequently asked questions
How much is a 1929 brown seal $20 bill worth?
A circulated 1929 brown seal $20 Federal Reserve Bank note is usually a small premium note. Scarce banks, crisp notes and star notes are worth more.
Why does my 1929 bill say National Currency?
Federal Reserve Bank notes were printed on paper stock made for National Bank notes, so they kept the National Currency heading.
What is the difference between a 1929 Federal Reserve Bank note and a National Bank note?
The Federal Reserve Bank note names one of the twelve Federal Reserve Banks; the National Bank note names a local bank and shows its charter number.
Are 1929 brown seal notes legal tender?
Yes, they're legal tender at face value, though collectors usually pay more.
Sources: Federal Reserve Bank Note (Wikipedia) · Paper Money of the United States, small-size National Bank notes (Neil Berman) · Bureau of Engraving and Printing frequently asked questions (archived)