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Red seals and serial numbers indicate that a bill is a United States Notes. US Notes were very similar to the current Federal Reserve notes in that they weren't backed by gold or silver in the Treasury.

US Notes were issued from 1862 up till the 1960s. Because there was no monetary difference between the 2 forms, US Notes were phased out and all subsequent bills were issued as Federal Reserve Notes to save on printing costs.

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Q: What does it mean if a bill's serial number is in red?
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