Will Pay To The Bearer On Demand 100 Dollar Bill
The 100 dollar bill is one of the most iconic and recognizable pieces of currency in the world. It is a legal tender issued by the Federal Reserve System of the United States of America. It features a portrait of Benjamin Franklin, one of the founding fathers of the United States, on the front and an image of Independence Hall, where the Declaration of Independence was signed, on the back.
What Is "Will Pay To The Bearer On Demand"?
One of the most interesting aspects of the 100 dollar bill is the phrase "Will Pay To The Bearer On Demand" that is written on the front of the bill. This phrase is known as the "Bearer Instrument" clause and it means that the bill can be redeemed for its face value in gold or silver upon demand.
This clause was originally included on all United States currency until it was removed in 1933 during the Great Depression. The removal of the clause was part of President Franklin D. Roosevelt's plan to stabilize the economy by taking the country off of the gold standard.
Why Was The Clause Removed?
The gold standard was a monetary system where the value of a country's currency was tied to the amount of gold that it had in reserve. This system was used by many countries during the 19th and early 20th centuries to stabilize their economies. However, during the Great Depression, many countries were forced to abandon the gold standard in order to stimulate their economies.
President Roosevelt's plan involved confiscating all gold coins, bullion, and certificates from American citizens and replacing them with paper currency that was not backed by gold. This was known as Executive Order 6102 and it effectively ended the gold standard in the United States.
What Does This Mean Today?
Today, the "Will Pay To The Bearer On Demand" clause on the 100 dollar bill is largely symbolic. While it is still technically possible to redeem the bill for its face value in gold or silver, the Federal Reserve System no longer offers this service. The value of the bill is now based solely on the faith and credit of the United States government.
Despite this, the 100 dollar bill remains one of the most widely circulated and accepted forms of currency in the world. It is used in many countries as a store of value and a medium of exchange. It is also a popular choice for money laundering and other illegal activities due to its high value and relative anonymity.
Conclusion
The "Will Pay To The Bearer On Demand" clause on the 100 dollar bill is a reminder of a bygone era when currency was backed by gold and the stability of the economy was tied to the amount of precious metal in reserve. While this clause is no longer relevant in today's economy, the 100 dollar bill remains an important symbol of American wealth and power.