Comment: Redeeming FRNs for Lawful Money

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Redeeming FRNs for Lawful Money

In 1978, I went to the Federal Reserve Bank of Richmond and requested that they redeem my FRNs for lawful money. The attorney that I eventually spoke to stated that all he could do was to exchange my old notes for new ones. That the law does not actually require redemption. He admitted that FRNs cannot be lawful money if they can be redeemed.

In 1979, I was travelling through Chicago by train, had a layover, and decided that I had time to walk over to the FRB Chicago. I presented myself at the FRB Chicago and had a similar result. However, this is where I picked up a copy of Modern Money Mechanics, which shows that loans are made using "new money" and are not based upon loans of deposits.

I later wrote to the Secretary of the Treasury and requested guidance as how to redeem FRNs. There was never any answer. Both the FRBs and the DoT have repudiated their FRNs and so they are irredeemable.