Small Size Notes-1928 to Present
After 68 years of prosperity, our large size currency felt the impact of modern times. So the large size US curency note came to an end due to the economics of the times. Tons of ink and paper were required to produce our currency to an ever expanding economy. The currency needed to fulfill this new demand was astronomical. The government realized that many millions of dollars could be saved if our currency was reduced in size. This was the direction the US Government took as on July 10, 1929 the first of the new small sized notes were placed into general circulation.
The new small sized notes were reduced in size from 7.42 inches by 3.13 inches to 6.14 inches ,X 2.61 inches. This cost cutting measures saved the government millions of dollars in ink and paper annually.
Small Size-Federal Reserve Bank Notes
Small size Federal Reserve Bank Notes (FRBNs) of 1929 was a one-year emergency issue. Issued in 1933 in denominations of $5, $10, $20, $50 and $100 denomoations, they all featured a distinct Brown Seal. Not all banks issued all denominations. Although they are all obsolete, most are still readily available for collectors. FRBN stars notes are highly sought after and are very rare in certain denominations. According to the Jhon E Cash Census, there are an estimated 1,215 star notes known. They differed from Federal Reserve Notes in that they could be redeemed only at the Federal Reserve bank that issued them.
They were issued only as an emergency issue in 1933 using the same paper stock used for National Bank Notes. This emergency issue was prompted by the public hoarding of cash because of the many bank failures happening at the time. This also limited the ability of the ,National Banks to issue notes of their own. They were phased out within 2 years, but served their purpose dutifully. As small size notes, they have brown seals and serial numbers, the same as National Bank Notes of the era.