Refunding Certificates

The Congressional Act of February 26, 1879, allowed the issue of $10 Refunding Certificates bearing Interest to the general public. These notes were to bear interest of 4% annually. These notes were designed to allow the average person to hold Interest Bearing Government securites similar to the higher denomination Interest bearing and Compound Interest Bearing Notes. Initially, these notes were supposed to bear interest indefinately, but the Congressional Act in 1907 stopped interest accrual on July 1st, 1907. At this time, the interest amounted to $11.30 giving the notes a value of $21.30. Unlike most of the other types of early U.S. currency that was payable in specie or coin, these notes were convertable into 4% U.S. bonds. The Series 1879 $10.00 Refunding Certificates were the only Series of Refunding Certificates. The Portrait at the left of the face is of Benjamin Franklin. Although printed only for a single series, there are two distinct design types for this series.


Payable to Order			Payable to Order Face Design		Payable to Order Back Design
The first issue was made "Payable to the Order" and were signed by the purchaser and made payable to the signer of the note.


				Series 1879 - Overprinted with 1 Red Serial Number and a Small Red Spiked Seal at Lower Center.


Identifier LRC10-1		Fr. # 213		Payable to: Order


Payable to Bearer			Payable to Bearer Face Design		Payable to Bearer Back Design
The second issue was made "Payable to the Bearer" and were made payable to anyone who possessed them. These were more easily circulated as currency than the first type as they did not have to be "signed over" each time they were passed.


				Series 1879 - Overprinted with 1 Red Serial Number and a Small Red Spiked Seal at Lower Center.


Identifier LRC10-2		Fr. # 214		Payable to: Bearer