What is the difference between National Currency Notes Silver Certificates and Federal Reserve Notes?

Answer 1

Silver certificates were bills backed by silver on deposit with the Treasury. They could be issued only in quantities that didn't exceed the total value of that silver. At one time, when the price of silver was fixed by the government, it was possible to exchange these bills for silver bullion as well as coins. When the price of silver was deregulated in the mid-1960s silver certificates were discontinued and the practice of exchanging for metal was ended. Most silver certificates are recognizable by their blue seals.

National Currency Notes were an unusual form of paper currency issued by banks that had received a charter from the Federal government. A chartered bank could accept government bonds on deposit and in return issue banknotes up to the total value of those bonds. The bills used designs that were to other bills of the same denomination but also carried the name and charter number of the issuing bank. They were issued from 1863 to 1929.

Federal Reserve Notes are the only kind of currency now printed in the US. All have green seals. They're produced by the Bureau of Engraving and Printing* for each of the 12 districts administered by the Federal Reserve system, the nation's central bank. They're not backed by any gold or silver but instead rely on the stability of the government to validate their acceptance in the marketplace.

United States Notes were a fourth major form of paper money. These were currency issued by the Federal Government but not backed by gold or silver on deposit. Most US Notes had red seals and serial numbers. They were issued from 1862 to 1966, and were discontinued only as a money-saving move to consolidate all currency production and administration under the Federal Reserve.

(*) Regardless of common myths and misunderstandings, only the BEP makes bills. The US Mint is responsible for coins and is totally separate from the BEP.