Postage Currency

 During the early years of the Civil War, in response to the political uncertainty of the time, the banking industry suspended the redemption of paper money for coin. The net effect of this action was to place a premium on coins vis-à-vis paper money and there resulted a widespread hoarding of coin by the public. Coins of all denominations were jealously guarded and hoarded and soon had all but disappeared from circulation. This was partly alleviated by small denomination (less than $1) U.S. postage stamps. People would encase the stamps and use them for trade.

  The solution, generally credited to Francis Spinner, Treasurer of the United States during the Lincoln administration, was the issuance of a form of fractional notes similar in appearance to the postage stamps they were designed to replace in circulation.
 
In all there were five different issues, or major design types, printed from 1862 until 1876, when production of these notes ceased. The designs were changed with some frequency in response to an alarming rate of counterfeiting.

Paper money after the American Revolution

  After the American Revolution, the new nation began the difficult task of building a national government. Alexander Hamilton, the first Secretary of the Treasury, conceived the idea of a central bank for the new nation. After the Constitution was adopted in 1789, Congress established The First Bank of the United States, giving it power to operate until 1811 and authorizing it to issue paper bank notes. The First Bank of the United States also served as the U.S. Treasury's fiscal agent, thus performing the first central bank functions in the United States.
 The Second Bank of the United States functioned from 1816 to 1836. Both central banks were unpopular with those wanting easy credit--primarily the western agrarian interests--and in 1832, President Andrew Jackson vetoed the recharter of the Second Bank.

  The Free Banking Era followed the demise of the First and Second Banks of the United States, marking a quarter century in which American banking was a hodgepodge of state-chartered banks without federal regulation. Had you lived between 1836 and 1866, during the Free Banking Era, your wallet would have been filled with State Bank notes of different sizes, shapes, and designs. Notes of the same denomination had different values, depending on what backed the currency. Some notes were counterfeited. Lax federal and state banking laws allowed almost anyone--states, private banks, railroads, stores, and individuals--to issue currency. A dollar issued by the "City of Atlanta" wasn't necessarily worth as much as a dollar printed by the "City of New York."

  By 1860, an estimated 8,000 different state banks were circulating worthless currency called "wildcat" or "broken" bank notes, so called because many of these banks were located in remote regions and frequently failed or "went broke." The era ended in 1863 with the passage of the National Bank Act.
  The notes above are dated 1857 and are from Omaha Nebraska. They are unsigned and the reverse are blank. The paper used is a type of onion skin making the notes fragile.

19th century obsolete U.S. banknotes

  After the Revolutionary War, paper money issued by the Colonies and the Continental Congress depreciated rapidly in value. Americans lost faith in government currency and for the next eighty years everyday commerce relied heavily on notes issued by a variety of chartered and private banks. Few of these institutions survived into the latter part of the 19th century, but their currencies are actively sought today by an avid collector community. That supports prices year after year and investors are discovering that high grade specimens can be reliable additions to their portfolios.

  Consider a pair of notes printed for the New Orleans Canal and Banking Company (ca. 1831-60s). As the scans show, both are in ideal uncirculated condition. The $10 bill features a rendering of a bald eagle. The $1000 note carries a vignette of Prosperity and Liberty seated. Twenty years ago, they sold for $10 and $40, respectively. Two years ago, I bought the specimens pictured for $48 and $160. Earlier this week, I sold them for $70 and $240. The difference in price between the two is a function of rarity. Two to four high grade examples of the $10 note are offered for auction each week. One sees the $1000 note perhaps ten times a year.

  Consider also the $10 bill put into circulation around 1860 by Canal Bank rival, the Citizens Bank of Louisiana (1833-1911). At least one of these appears for auction every couple of weeks, but there is an interesting story associated with the note and it commands high prices. Citizens Bank catered to culturally diverse New Orleans with bilingual currency. In this case, the front of the note was in English and the back featured French. People referred to the bill by its French denomination (DIX) and soon the term "Dixie" pertained not only to the note, but to the South itself. Some historians dispute this interpretation, but it's a cute story and the DIX note has become something of a numismatic celebrity.

  As with any collectible, investment in obsolete bank notes requires a degree of sophistication. The comprehensive grade and population figures available to certified coin collectors just don't exist for the obsolete notes. The two major third-party coin graders are among a small number of outfits now grading notes, but the services have only been offered for a few years. Descriptions of most of the specimens on sale come from the persons selling them, or from their auction house representatives. Photos and scans are often made available though and important features are normally visible. It's worth taking a look. Trends in high grade note prices are positive, rendering many types solid investment opportunities.

5000

   Certainly the key piece in this offering of Legal Tenders, and one of the key pieces in all of Federal currency. The Dauers have illustrated both sides of this note on page 142 of their American History As Seen Through Currency.Along with the photos comes the following caption: “All the $5,000 and $10,000 Legal Tender notes of 1878 have been redeemed and destroyed by the Treasury Department. The note above is a specimen furnished to the Chinese Government. Proof or specimen notes are usually either printed on cardboard or have a blank reverse. This note is printed on both sides and on legitimate currency paper. It is thus highly desired by collectors and it is the only surviving example of this design.”
All of the above is wholly correct, but there is considerably more to tell. This note has only three minor differences from the regular issue: three stars fill each serial number box, each signature has three small cancels, and the Chinese Government presentation is overprinted between the signatures. Save for that, it is a totally legitimate piece of currency.
It is also the only $5,000 Large Size note of any issue or design that is available to the collecting public. To our knowledge, there are no other Large Size notes of any denomination in this category. The note is more akin to a sample than a specimen.
Whatever category you place this note in, it is an irreplaceable part of US currency history and the key to assembling a complete set of U.S. currency by Friedberg number.

trading

    Ponterio & Associates, a division of Bowers and Merena, will present the world and ancients auction of coins and paper money, more than 2,300 lots, including over 1,500 lots of Ancient and foreign coins and 828 lots of world paper money.
  Prior to the auction, lot viewing opportunities for U.S. currency lots will include a special viewing at the Memphis International Paper Money Show on Thursday, June 17, from noon to 5 p.m. CT, when the notes will then travel to Baltimore for the live auction and viewing at the Expo. Matt Quinn, director of currency auctions, is enthusiastic about the impressive highlights that will cross the auction block. “We have two magnificent sheets of currency to offer, with the first being a tremendous uncut sheet of Rhode Island Colonials. The Catalog numbers range from RI-282 to 289, with two of each denomination seen, seldom seen in such a large format. The other significant uncut grouping of notes is one of the finest sheets of Silver Certificates we have come across. The sheet is an Uncut Sheet of 12 Fr. 1654 1934D Five Dollar notes encapsulated in a Superb Gem 68PPQ holder by PCGS Currency. This stunning sheet of notes is flawless to the naked eye.
  Some important National Banknotes in the catalog start with a highly scarce large size 1902 Five Dollar Plain Back with the second bank name for charter 9745. This County National Bank of Santa Cruz note retains nice appeal and is likely missing from even comprehensive California collections. The second notable National comes from Muscogee, Indian Territory with the Charter number of 4385. “Territorial notes are ever popular pieces which always command a premium,” Quinn said, “as mostly all in the National Banknote section of the hobby aspire to own one.”
  The type collectors will also be fortunate to participate in the sale with a few notable high grade large size pieces available. Quinn added, “One of the most pleasing examples we have seen in some time for Friedberg number 21 will be presented to the collecting community bearing the challenging series ‘A,’ in a robust PCGS Extremely Fine 45PPQ holder. Next a wonderful Fr. 116 1901 $10 Bison note will cross the block encapsulated in a PMG Superb Gem Uncirculated 66EPQ grade which really wrings out all the detail the design could offer. A tasteful selection of high grade Gold Certificates will be the staple in the end of the large size type selection with many outstanding Gem notes seen.

created in Japan

                                     Japan banknote on left, U.S. banknote on right
 153 national banks began to eventually issue paper currency which were originally printed in the United States and therefore, bore a striking resemblance to U.S. paper currency of that period (see below). Japan eventually began designing and printing its own banknotes in the late 1890's.

$500 banknote

  $500 banknote circulated for 41 years, and has been out of circulation for 43 years. At the time it was taken out of circulation there was fewer than one $100 banknote per person in this country, and nearly all $100 banknotes circulated domestically.

 The only reason it was discontinued is that it was perceived to help criminals (including counterfeiters). Today a $100 is worth less than $20 43 years ago. The only valid reason not to restore the $500 banknote is that it helps criminals.

 There is no other valid reason. It would help the Treasury logistically if they could go back to the larger notes. They could afford more security features. It would be much easier to replace the current supply of 8 billion Benjamins with 3 billion new $100 Benjamins, and 1 billion new $500 notes .

           This is the more interesting 1918 version.

$500 Legal Tender Note

  The discovery increased the number of known Series 1874 pieces to five, though that number is misleading.
  Two pieces are permanently impounded in the Federal Reserve Bank of Chicago and the Smithsonian Institution and a third is reported but it lacks sale information, its grade is even unknown. The last, and presumably the only other piece in collector’s hands, appeared at public auction once; it realized $44,500 in 1983.
  As a basic type, this note is incredibly scarce. The design encompasses fourteen Friedberg numbers made up of the 1874, 1875, 1878, and 1880 Series’ and many different signature combinations. In total those fourteen Friedberg numbers show only thirty six survivors but more than two thirds of the notes are permanently impounded in various museum and government collections, thus only eleven of those specimens are presumably available to collectors.
 At left stands the allegorical figure of Victory, her face long and her posture, a state of calm. Below her rests a tipped cannon and unspent cannon balls, the remnants of a war that affected a nation in a way that can never be captured in a single vignette.
 At right is Major General Joseph K. Mansfield, one of only a few men immortalized on United States currency for their contributions to the Civil War. The power of Charles Burt’s design really comes to light with the knowledge of Mansfield’s fate. Victory looks to Mansfield who was himself a casualty of the Union victory at Antietam. He was taken in his prime on the bloodiest day in American history where more than 22,000 soldiers were killed or wounded in battle.

  This Note was sold in the Heritage 2007 January Orlando, FL Signature Currency Auction for $517,500

$1,000 Gold Certificate

 
  In 1990, the sale of the Thompson Collection was the first public offering of the unique Fr. 1219b Series 1907 $1,000 Gold Certificate. Only 12,000 examples of the Series 1907 $1,000 Gold Certificate were issued during the joint tenure of James C. Napier and Lee McClung. They served together as Register of the Treasury and Treasurer for less than two years, between March 1911 and November 1912, making their signature combination on currency scarcer than most joint tenures of the time. The almost exclusive use as carefully accounted for, interbank monetary instruments nearly assured the redemption and subsequent destruction of most high denomination notes.
 The design of this high denomination gold certificate is regal, employing a golden-yellow overprint and back design intended to remind the user of its status as a monetary instrument redeemable in gold coin on demand. Changes to the Federal Reserve Act on December 24, 1919 resulted in a minor design change to the $1000 Gold Certificates, a clause was placed over the bright $1000 overprint on the face. The change called an end to the Series 1907 issues and ushered in the slightly altered and not nearly as beautiful Series 1922 issues.
 While many rarities considered unique among collectors since their kin are permanently impounded in institutional collections at the Smithsonian and Federal Reserve Banks, this note is the only example known in or out of government hands. Collectors now are even more determined to take home a rarity like this than ever before, and its status as a true numismatic rarity will command a price likely to well exceed its 2005 realization of $241,500 in the Taylor Family Collection Auction. 

Grand Watermelon

 
  The $1000 “Grand Watermelon” note pictured above is, as of this date, the most expensive US banknote ever sold. A world’s record price of $2,255,000 was paid for this note, more than double the previous record. Heritage Auction Galleries of Dallas, Texas (www.HA.com) brokered the private transaction between two collectors.
  The only other known red seal Grand Watermelon is in the museum at the Federal Reserve Bank of San Francisco.

Stolen Banknote

  $10 Dollars issued by Citizens National Bank of Lebanon Kentucky in 1909 VF-XF condition.
Audrius Tomonis has advised that this note was obtained by deception or fraud. The matter has been reported to the FBI and the US Postal Inspectors.

The first silver dollar U.S.

   The first one-dollar U.S. coins - silver U.S. coins in denominations of $ 1, minted from 1794 to 1804 years. There are 2 types, both obverse and reverse of the coins. The dollar in 1804 a special story. He is one of the most expensive coins in the world. In 2008, one of the 15 existing dollars in 1804 was sold for $ 3.725 million.

    Dollar with the image of Liberty with flowing hair (born Flowing Hair Dollar) is the first silver coins in denominations of U.S. $ 1. Minted in 1794 and 1795 at the Mint in Philadelphia. Just 2 years was released just over 162 thousand coins.
   The obverse and reverse of the coin were prepared engraver Robert Scott (born Robert Scot).
Coin's obverse contains a picture of a woman with her hair, which symbolizes freedom. The bust is the inscription «LIBERTY», and on the sides of 15 six-pointed stars (the number of states at the time of issue) - 8 on the left and 7 on the right.

    In the center of the reverse is the bald eagle - the heraldic symbol USA. Eagle in the center of a wreath of olive branches. The bust is made semicircular inscription «UNITED STATES OF AMERICA».
   Denomination of the coin is displayed on its Edge «HUNDRED CENTS ONE DOLLAR OR UNIT».
The coin had a small print run. In 1794, came into circulation coins in 1758, of which up to now have lived no more than 200. Initially, in 1794, 2,000 coins minted, of which 242 were immediately destroyed, as were the poor quality of the remaining donated to members of Congress, the Senate, and other officials. In 1795, 160,295 coins minted.
  Dollar featuring draped bust of Liberty on the obverse (Draped Bust Dollar) has several types. In the years 1795-1798 were minted coins, the reverse of which is repeated backwards dollar predecessor - the dollar with a picture of Liberty with flowing hair. In the years 1798-1804 has been struck dollar, on the reverse of which was an image of the Great Seal of the United States - the bald eagle.
All coins were minted at the Philadelphia Mint.
 
   The obverse features the image of Liberty. As a model for the image was taken by a portrait of Anna Wheeling Binh (born Ann Willing Bingham), considered one of the most beautiful women in the United States, the famous artist Gilbert Stewart.
 The coin has two main types. At the same time, there are also several subtypes. In the years around the image on the obverse Liberty has 15 stars (the number of states in 1795.) After becoming a part of the U.S. 16th Tennessee and the previous generation dies, the coin was minted with 13 stars (the number of the first 13 states).
  For all the time it was released about 450 000 coins type 1 (1795-1798 years), of which up to now has reached no more than 3%.
  Since 1798 the dollar was minted with a new reverse. The reverse side of the coin generally repeats the image of bald eagles in the Great Seal of the United States. There are several types of coins of this type:
    • In early 1798 13 stars arranged in such a way as on the Great Seal - forming a hexagon. Subsequently, the stars are in 3 rows - in the top 5, an average of 6 and one on each side of the eagle's head
   • In 1799, the stamp was created, which by mistake instead of 13 stars were 15. The mistake was spotted in time, but the stamp can not be undone completely, but only increased the size of the clouds so that they closed the two "extra" star
   • In 1800, as was mistakenly created a stamp containing additional letter A to the word «AMERICA». This can also been seen in time, but not completely eliminated - only the right half of the letter did not get the coins. The result was «AMERICAI»-kind.
  
 During the 1795 to 1804 years coin type «Proof» not minted. In the period from 1834 to 1852 years, released a matter of coins «Proof» for certain collectors.
  Around the time of use along with the Spanish dollar (equivalent to R $ 8). Spanish dollar was widely circulated in the Spanish, British and French colonies and the United States. Spanish 8 reales had the advantage, but it was more widespread and have a greater amount of pure silver (25,56 vs 24,1 g).
In this regard, the U.S. dollar is not in great demand. In 1804, their coinage was discontinued more than 30 years.

    Dollar in 1804 has a special story, so that was one of the most valuable coins in the world. At auction in 2001, 2008 and 2009, the U.S. dollar in 1804 was sold for more than $ 4 million (along with several other coins), $ 3,735,500 and $ 2,300,000, respectively.  In 1804, 19,750 were minted silver dollars. The peculiarity of this issue was that the stamp was used in 1803. Thus, all of the outstanding 1804 silver dollars were dated 1803 year. After that, more than 30 years, coins of 1 dollar is not issued.  In 1834, during the presidency of Andrew Jackson, decided to release a few gift sets for the rulers of the Asian states. It was assumed that the set will include all of the coins that are in use in the U.S.. Last time at the moment Coin 1 dollar minted in 1804. Engravers did not consider that these coins were dated 1803 year. The result is the dollar stamps, dated 1804. Only in 1834 was released in 1804 $ 8 quality «Proof». Of these, one was presented as a gift to the Sultan of Oman, one - the King of Siam Rama III. One coin was left in the collection of the U.S. Mint, and the other five went to the world after the death of the road under mysterious circumstances after Edmund Roberts in his luggage and find these coins.  After the death of the King of Siam Rama III, was succeeded by his brother, known as Rama IV. He presented a set of U.S. coins Englishwoman Anna Leonuens. In 2001, the entire set of these coins sold anonymous collector for more than $ 4 million.  In the period from 1858 to 1860 by Theodore Ekfeldt for collectors at the mint was minted small series in 1804 dollars. Illegal coins were to be destroyed, but the seven coins still exist, increasing the number of "1804 dollars" to fifteen. Of these fifteen - two are in the collections of the Smithsonian Institution, and one was sold in 2008 for 3 million 735 thousand 500 dollars.

Civil War money

           
             Did you ever see the money from the Civil War? This is very interesting.
  People started using paper money because of the war, whether or Confederation States. There are also several special modern commemorative coins that are related to the Battle of Gettysburg and President Lincoln.The Civil War created a shortage of coins, so the bill is the first official of the United States appeared in circulation. Were issued $ 5, $ 10 and $ 20 was published in 1861.In 1862, they began to produce the United States notes, also known as Legal Tender, which more closely resembled our modern paper money.Printing too much money would lead to inflation, but the North to avoid this by raising taxes and income taxes in 1862 and 1864.         Paper coinThe coins were in such short supply that dealers have tried using a credit receipt or even with postage stamps as money!Thus, in 1862 the U.S. government made a small paper money in coin denominations: 5, 10, 25 and 50 cents. This is called the postal currency, but modern collectors prefer to call it Fractional currency.

     Lack of money civil war was even worse in the south. Banks lend their coins and bullion in the Confederate government at the beginning of the Civil War, so it was a simple barter between people, espcially soldiers exchanged with coffee and tobacco instead of money, the Civil War. Merchants issued tokens to try to cope with the shortage of coins, and most states issued their own notes. There were even some cotton bond in coins. Coins in circulation during this period did not have the motto "In God We Trust", printed on them. Started churning out the inscription after Mint Act of March 3, 1865.Civil War paper money production.  Confederate States of America do not want to use the money that has been the United States of America printed on it, so they make money with images CSA officials and southern characters, such as slavery, cotton bales, and ships. Hundreds of hands clerks signed noty.Podpisanty were mostly women, and it can be an interesting part of genealogy research to find a relative who signed the money. See the book of Confederate currency and for a list of names. Shortage also affected the printing of money, since there were only 20 paper mills in the South, and it was the era when the paper was made from linen and cotton rags, but not a tree. Rags was a demand for dressing wounds, therefore, they had to transport the paper in England and the North!
 Confederate States of America, not the tax on first glance. They left a shortage of money to the state that issued the bonds and paper money, but it caused an increase inflyatsii.Yuzhnye government thought that cotton is equal to gold, as they were the largest cotton growing area in the world, but by that time, the lack of developed They were under siege and unable to deliver most of the cotton.
              Mint Production
 The Federal Mints located in the South were located in:
    Charlotte, North Carolina
    Dahlonega, Georgia
    New Orleans, Louisiana
 They changed ownership peacefully since Southern workers were sympathetic to the Confederate cause. Each mint struck small quantities of coins in early 1861, but they soon stopped due to the supply shortage. Most metals were going into weapon production. Also, these coins used the same United States die patterns as before the Civil War. Only four half dollars were struck with a Confederate design at New Orleans.
At the End of the Civil War.
 The federal government refused to redeem Confederate Civil War money at the end of the Civil War. Some notes were collected by companies and used to print advertising.

Civil War 1861 - 65 y.y.

 The main purpose of the Civil War, was the restoration of the Union of the several States, and to uphold the Constitution. However, Congress had intended to free the slaves (emancipation), the main issue of the war.

Before the beginning of the Civil War, two issues facing the nation. The first was the emancipation of the slaves that Southerners felt the loss of property and the second question was about the right to secession (the output of any state of the Union). The Constitution was an agreement between the states, so every state had the right to withdraw from the Union, when he pleases. These issues have divided the nation.

In February 1861, was formed the Confederate States of America. She was from South Carolina, North Carolina, Virginia, Tennessee, Georgia, Florida, Alabama, Mississippi, Louisiana, Texas and Arkansas.
 

January 1, 1863, President Lincoln issued the Declaration of Emancipation Proclamation, declaring the freedom of slaves. However, the actual abolition of slavery has not come until 1865. The civil war ended with the end of the April 1, 1865.

With the war came the concept that the United States is not a group of states, as a united nation. With the liberation of the slaves, many new questions, for example - such as civil rights.