The following image shows a pre-1930 US dollar note, which highlights the fact that it is a note backed by a commodity of value, in this case silver:
The first highlight states “silver certificate”
The second highlight states “This certifies that there is on deposit in the treasury of”
The third highlight states “In silver payable to the bearer on demand”
Around mid -left it states “This certificate is legal tender for all debts public and private”
Clearly this is a note (actually a certificate) that is backed by something of real value, silver.
The next image shows a modern “Federal Reserve Note”, which is fiat currency, and is backed by nothing at all:
The first highlight indicates that this is the property of the Federal Reserve, it is a note, and not a certificate.
The second highlight merely states “The United States of America”
The third highlight just states “ONE DOLLAR” but makes no mention of anything backing this dollar of something unspecified.
Around mid -left it states “This note is legal tender for all debts public and private”
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