For the 1929 National and Federal Reserve Bank brown seals, what is the difference between type 1 and type 2?
The basic difference is Type 1 notes have serial numbers with both prefix & suffix letters, whereas Type 2 only have a prefix letter. The next quick difference is that Type 1 notes have the charter number printed in black on the left & right sides of the front, and Type 2 notes have the same, and additionally have the charter number in brown next to the serial numbers. This Coin Talk thread has additional information http://www.cointalk.com/t158560/
This only refers to 1929 Nationals. There are no style differences for 1929 Federal Reserve Bank Notes.
**The basic difference is Type 1 notes have serial numbers with both prefix & suffix letters, whereas Type 2 only have a prefix letter. The next quick difference is that Type 1 notes have the charter number printed in black on the left & right sides of the front, and Type 2 notes have the same, and additionally have the charter number in brown next to the serial numbers.** The significant difference between type 1 and type 2 1929 nationals lies in the serial numbers. Type 1s have sheet serials, where all six notes from the same sheet have the same serial number. Type 2s have note serials, where the six notes on the same sheet have consecutive serial numbers from the top position down. As previously mentioned by steve, type 1s have suffix letters, type 2s do not; and type 2s have two additional charter numbers printed in brown ink.
I've found an example of each type (same denomination) here, http://forums.collectors.com/messageview.cfm?catid=23&threadid=828670