Quote:
Originally Posted by vintagetoppsguy
Check out this $20 bill from 1960. What does "REDEEMABLE IN LAWFUL MONEY AT THE UNITED STATES TREASURY, OR AT ANY FEDERAL RESERVE BANK" mean?
What is lawful money? Wasn't this $20 bill lawful money?
If so, how can you redeem it for lawful money if it's already lawful money?
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It's a series 1950. The "lawful money" clause is one of the steps to the full fiat currency we have today. The earlier Federal Reserve notes were redeemable in gold, which changed with the series 1934 notes since FDR made gold ownership illegal. "Lawful money" in this case would be silver. Now they're just paper.