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A Federal Reserve Note (FRNs or ferns, not to be confused with "Federal Reserve Bank Note") is a type of banknote issued by the Federal Reserve System and is the only type of American banknotes that still circulates today. Federal Reserve Notes are fiat currency, with the words "this note is legal tender for all debts, public and private" printed on each bill. (See generally 31 U.S.C.&_160;ยง&_160;5103.) They are issued by the Federal Reserve Banks and have replaced United States Notes, which were once issued by the Treasury Department. The paper that Federal Reserve Notes are printed on is made by the Crane Paper Company of Dalton, Massachusetts. The first institution with responsibilities of a central bank in the U.S. was the First Bank of the United States, chartered in 1791 by Alexander Hamilton. Its charter was not renewed in 1811. In 1816, the Second Bank of the United States was chartered; its charter was not renewed in 1836, after it became the object of a major attack by president Andrew Jackson. From 1837 to 1862, in the Free Banking Era there was no formal central bank. From 1862 to 1913, a system of national banks was instituted by the 1863 National Banking Act. A series of bank panics, in 1873, 1893, and 1907 provided strong demand for the creation of a centralized banking system. The first printed notes were Series 1914.
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