After years of National Bank Notes being printed, the US Treasury Department started to become uneasy with the idea of customers believing that these banks were branches of the National Government. As a way to avoid any confusion, the Act of May 24, 1926 came into effect. With this Act, congress banned the use of the words ‘Federal‘, ‘Reserve‘ and ‘United States‘ in ANY private bank title. However, banks already using these titles prior to this date were ‘grandfathered’ in and allowed to keep operating with their titles unchanged.
These bank notes are now commonly known as having ‘Forbidden Titles‘, making them even more sought after by collectors. Below is an example of one of the ‘Forbidden Titles’ we have available at Alex Perakis Coins and Currency.