United States notes and gold certificates are redeemable by the Treasurer in gold coin, treasury notes of 1890 in gold coin or silver dollars, and silver certificates in silver dollars. National bank notes and federal reserve bank notes are redeemable in lawful money by the Treasurer, and also over the counter of the issuing bank. Federal reserve notes are redeemable in gold by the Treasurer.
Since the abolition of the subtreasuries in 1920-1921, the federal reserve banks have redeemed United States currency, national bank notes, federal reserve bank notes, and coin for non-member banks, business concerns, and individuals. It is not necessary to effect such redemptions for the member banks inasmuch as they may forward paper money or coin, whether fit or unfit for circulation, to the federal reserve bank for credit to their reserve account, and they may order paper money or coin fit for circulation from this bank as needed.
All United States notes, treasury notes, and gold and silver certificates unfit for circulation, when not mutilated to a greater extent than two-fifths of the whole, are redeemed by the government at their full face value. All notes mutilated so that less than three-fifths, but clearly more than two-fifths, remain, are redeemed by the Treasurer at Washington at one-half the face value of the whole note. Fragments less than three-fifths may be redeemed at full face value if accompanied by an affidavit of the owner that the missing portions have been totally destroyed; this affidavit must state the cause and manner of the mutilation and must be sworn to by a notary.
When remittances are received for redemption by the Treasury from a place in which there is no federal reserve bank or branch bank, returns are made in new United States notes, subsidiary silver, or minor coin, by mail (postage and insurance deducted) unless requested otherwise, in which case the charges for transportation are paid by the consignee. If the remittances are received from a place in which there is a federal reserve bank or branch bank, the Treasurer may make returns by check payable at the federal reserve bank or branch bank, if it suits his convenience.
Paper currency for redemption must be assorted by kinds and denominations, and each 100 notes or less enclosed in a paper strap marked with the amount. The Treasury gives other instructions in case of large packages. With each package should be enclosed a memorandum giving an inventory of the contents, the sender's name and address, and the disposition to be made of the proceeds. United States notes, treasury notes of 1890, gold certificates, and silver certificates may be sent in the same package and should be marked "Unfit United States currency for redemption." National bank notes, federal reserve notes, and federal reserve bank notes may be sent in the same package, marked "National and federal reserve currency for redemption." Charges are paid by the government on unfit national bank notes, federal reserve notes, and federal reserve bank notes, when sent to the department at Washington "charges collect," but not on any other kind of currency.
The total redemptions during the fiscal year 1919 were:
United States currency............. $731.4 millions
Federal Reserve Notes............... 877.3
Federal Reserve Bank Notes.......... 31.8
National Bank Notes............... 294.2