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Text from a US Silver Certificate...from when US money was actually backed by something of value, and not just the governments word.
MoreAt one time the price of silver was fixed by the government. Paper "silver certificates" were printed in amounts up to the value of the total amount of silver held on deposit in the Treasury. It also meant that each silver certificate could be redeemed for a specific amount of silver metal because the two were linked in value.When industrial demand for silver increased in the early 1960s the government was forced to deregulate its price. That meant that each silver certificate could no longer be tied to a fixed amount of silver. Printing was suspended by 1965 and redemption for silver metal ended shortly after that.
There has been considerable debate over that decision but it belongs in threads related to politics and economics rather than US Banknotes.
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Which cheque works just like a currency note?
Currency notes are promissory notes payable to the bearer on demand.section 31 of RBI ACT provides that no one other than RBI or Central Govt. Can issue a promissory note or bill of exchange payable to bearer on demand...hence no cheque works just as a currency note.
What are the requisites of negotiable promissory note?
1. it must be in writing signed by the maker. 2. it must contain an unconditional promise to pay a certain sum in money. 3. it must be payable on demand, or at fixed or determinable period of time. 4. must be payable to order or bearer.
What is a bank of issue?
A bank of issue is a bank which issues its own notes payable to the bearer.
Will Pay To The bearer on demand when did this stop on bills?
1963
What does will pay to the bearer on demand mean?
On the paper currency of many countries, there is a phrase that says "will pay to the bearer on demand." This means that the money is essentially nothing more than a promissory note but it is backed by gold owned by the government.
One dollar in silver payable to the bearer on demand?
That was written on the old US $1 silver certificate. At they time they were still in use, they could be redeemed for a dollar's worth of silver coins, but this practice was discontinued in the 1960s. The bill is still legal tender at face value today.
What is Currency notes?
A currency note is a banknote -- a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand.
What is bearer cheque?
Cross cheque means that it can only be paid into a bank account and cannot be paid in cash over the counter. A bearer cheque is made payable to the bearer i.e. it is payable to the person who presents it to the bank for encashment
Which cheque works just like a currency note?
Currency notes are promissory notes payable to the bearer on demand.section 31 of RBI ACT provides that no one other than RBI or Central Govt. Can issue a promissory note or bill of exchange payable to bearer on demand...hence no cheque works just as a currency note.
What is a bearer bond?
A bearer bond is a negotiable loan instrument which is payable to its holder by the issuer according to preset conditions.
What is the value on a One Silver Dollar Payable To The Bearer on Demand?
Please post a new question with the bill's date and what letter if any is next to the date, because it's not possible to provide a value without that information. If you look at the top of your bill you'll see it's called a Silver Certificate, a form of paper money that was discontinued in the 1960s.
What is the sec - 31 of the RBI act?
31. Issue of demand bills and notes.- 2[ (1) ] No person in 3[ India] other than the Bank or, as expressly authorized by this Act, the Central Government shall draw, accept, make or issue any bill of exchange, hundi, promissory note or engagement for the payment of money payable to bearer on demand, or borrow, owe or take up any sum or sums of money on the bills, hundis or notes payable to bearer on demand of any such person: Provided that cheques or drafts, including hundis, payable to bearer on demand or otherwise may be drawn on a person' s account with a banker, shroff or agent. (2) 4[ Notwithstanding anything contained in the Negotiable Instruments Act, 1881 (26 of 1881 ), no person in 3[ India] other than the Bank or, as expressly authorized by this Act, the Central Government shall make or issue any promissory note expressed to be payable to the bearer of the instrument.]
What are the requisites of negotiable promissory note?
1. it must be in writing signed by the maker. 2. it must contain an unconditional promise to pay a certain sum in money. 3. it must be payable on demand, or at fixed or determinable period of time. 4. must be payable to order or bearer.
What is a bank of issue?
A bank of issue is a bank which issues its own notes payable to the bearer.
Will Pay To The bearer on demand when did this stop on bills?
1963
What does 'pay to the bearer on demand' on a bill mean?
'Pay to the bearer on demand' just means that you need to pay the bill to the person you are owned money to. The person will be noted on the bill.
Can a bank issue bearer demand draft?
no,because bearer draft is like a currency which can be issue only by rbi hence cant be issue bearer
