tokens representing value, which substitute in circulation for set quantities of gold or silver. Having no value of their own, treasury notes circulate as representations of gold and silver money and to some’extent may substitute for them as a medium of payment. Treasury notes may take the form of paper money and bank notes, as well as of coins having a nominal value greater than their actual metallic value (such as copper and nickel coins).

money not exchangeable for gold and issued by the treasury, as well as short-term treasury obligations in circulation. Before World War I, treasury notes greatly differed from bank notes, which were put out by the banks of issue to credit commodity circulation and which were exchangeable for gold. During and for some time after World War I, budget deficits were often covered by treasury notes, as well as by bank notes (which ceased to be exchangeable for gold). During World War II, military expenditures were financed by short-term treasury obligations, such as the “occupation marks” issued by fascist Germany that circulated in countries temporarily occupied by Germany.

In the USSR, treasury notes are used to replace bank notes and to pay small bills. Treasury notes circulate in the country on an equal basis with bank notes. Treasury notes are issued by the Gosbank (State Bank) of the USSR according to its emission plan in denominations of one, three, and five rubles. By law, treasury notes are backed by the national property of the USSR, and their acceptance at their nominal value is mandatory throughout the entire country for all types of payments.