Early federal issues
In 1862, the United States government issued its first legal tender paper money although government obligations were issued periodically between 1812 and 1861 in the form of interest-bearing Treasury notes. These bore interest at 5 or 6 percent and were payable after two years.
The demand notes were authorized by congressional Acts of July 17 and Aug. 5, 1861. They were soon nicknamed "greenbacks," a term that became so popular it was passed on through the years and is heard even today, most often when paper money specialists, or syngraphists, get together.
The demand notes bear the signatures of various employees of the Treasury Department who signed their own names, as well as the words "For The" for the register of the Treasury and treasurer of the United States. Demand notes do not carry the Treasury seal or the actual names of the register and treasurer, and are unique in that respect.
With this beginning, the United States started production of paper money that continues to this day.
Notes issued until 1928 were large-size notes, commonly called "horse blankets," sometimes known as "saddle blankets."
Interest-bearing Treasury notes
The constitutionality of the Treasury notes issued between 1812 and 1861 was an ever-present topic in Congress. Most interest-bearing notes bore interest at 5 or 6 percent and were payable after two years. A few 60-day notes, in denominations of $50 through $5,000, were issued. With few exceptions all of the 121,000-plus notes that were issued have been redeemed and are unavailable to collectors.
Demand notes of 1861
Demand notes of 1861, authorized by the July 17 and Aug. 5, 1861, Acts of Congress, were issued in three denominations: $5, $10 and $20. Each note bears the first authorization date, July 17, and the date of issue, Aug. 10. These notes were not originally legal tender but were later specified as such. The major portions of the face designs are identical to those on the legal tender notes of the same denominations.
The demand notes were made payable, on demand, by the assistant treasurer of the United States at Boston, New York, Philadelphia, St. Louis and Cincinnati. The $5 note features a portrait of Alexander Hamilton at right and a statue of Columbia at left. Lincoln is portrayed at left on the $10 note with a woman representing Art at right. The $20 note features Liberty.
Legal tender notes
Legal tender notes consisted of five issues. The first issue of March 10, 1862, was produced in $5, $10, $20, $50, $100, $500 and $1,000 denominations. Issue two was confined to $1 and $2 notes, although the face design does indicate that a $3 denomination was planned, but not released. The third issue, dated March 10, 1863, was printed in the same denominations as the first issue, but changes were made to the back design.
The fourth issue consisted of Series 1869, 1875, 1878, 1880, 1907, 1917 and 1923, with all except the 1869 notes carrying the designation "United States note." The 1869 series was designated as "Treasury note." The United States introduced paper with silk threads as a deterrent to counterfeiting with the Series 1869 notes. The fifth issue was limited to the $10 denomination.
Compound interest Treasury notes
The congressional Acts of March 3, 1863, and June 30, 1864, authorized $10, $20, $50, $100, $500 and $1,000 compound interest Treasury notes. They bear the following inscription: "Three years after date the United States will pay the bearer ... dollars with interest at the rate of six percent compounded semi-annually" on the face. The back has "By Act of Congress, this note is legal tender for ... dollars but bears interest at six percent only at maturity as follows [table of interest]. This sum ... will be paid the holder for principal and interest at maturity of note three years from date." These notes were issued to raise money to finance the Civil War.
Interest-bearing notes
The interest-bearing notes were the successors to the Treasury notes that were issued between 1812 and 1861 and were issued for the same purpose as the compound interest Treasury notes, to raise money to finance the Civil War.
One- and two-year notes bearing interest at 5 percent were authorized by the Act of March 3, 1863. Three-year notes bearing 7.3 percent interest were authorized by the Acts of July 17, 1861, June 30, 1864, and March 3, 1865, and were issued at three different times. These three-year notes had five attached coupons that were detached and redeemed at six-month intervals. The one-year notes were issued in denominations of $10 to $5,000, the two-year notes in denominations of $50 to $1,000 and the three-year notes ranged from $50 to $5,000. All are extremely rare due to immediate redemption on the expiration date.
Currency certificates of deposit
The secretary of the treasury was authorized to issue currency certificates of deposit by the Act of June 8, 1872. Denominations of the notes were $5,000 and $10,000. The $5,000 notes were payable on demand in U.S. notes at the place of deposit and were accepted in settlement of clearinghouse balances at the locations where deposits were made. Authorization of these large-denomination certificates was repealed March 14, 1900.
Silver certificates
Acts of Congress dated Feb. 28, 1878, and Aug. 4, 1886 authorized the large-size silver certificates. There were five issues from Series 1878 to Series 1923.
The first issue, Series 1878 and 1880, consisted of $10, $20, $50, $100, $500 and $1,000 denominations. The face side states that "There have been deposited with the Treasurer of the United States at Washington, D.C. payable at his office to the bearer on demand ... Silver Dollars." "Certificate of Deposit" is inscribed on the notes. All certificates of the 1878 series and one of the notes in the 1880 series are countersigned by assistant treasurers of the United States at New York and bear the signatures of G.W. Scofield and James Gilfillan.
The second issue of silver certificates consists of Series 1886, 1891 and 1908. The 1886 series was printed in denominations of $1, $2, $5, $10 and $20. The 1891 series includes these, but added denominations of $50, $100 and $1,000. Only the $10 note was issued in Series 1908. On the face of Series 1886, 1891 and 1908 notes appears the wording "This certifies that there have been deposited in the Treasury of the United States ... Silver Dollars payable to the Bearer on Demand."
The third issue of silver certificates, Series 1896, is one of the most popular and deemed by collectors as the most beautiful series ever produced by the United States. Titled the "Educational Series," the notes were designed or redesigned by Thomas F. Morris, designer and chief of the Engraving Division of the Bureau of Engraving and Printing from Nov. 1, 1893, to June 30, 1897. Other designers of this famed series were Will H. Low, $1; Edwin H. Blashfield, $2; and Walter Shirlaw, $5. Known engravers of the series were Charles Schlecht and George F.C. Smillie.
The fourth issue, Series 1899, was released in three denominations, $1, $2 and $5. The face design of the $1 features the American eagle with portraits of Lincoln and Grant. The $2 note portrays Washington between figures representing Mechanics and Agriculture, and the $5 note features Ta-to-ka-in-yan-ka, Running Antelope, a Sioux Indian.
There is an interesting story behind the printing of the $5 note. Running Antelope was a member of the Oncpapa or Hunkpapa Sioux tribe. The portrait used on the note came from a photograph taken in 1872 for the Bureau of Ethnology; however, Running Antelope wore a headdress with three feathers that projected too high for a good image on the note. To correct the problem, an employee of the Bureau of Engraving and Printing posed wearing a warbonnet belonging to another tribe, and the headdress was cut out and superimposed on the photograph of Running Antelope; George F.C. Smillie engraved the design in November of 1899. The headdress, ironically, belonged to the Pawnee tribe, rivals of the tribe of Running Antelope.
The fifth issue of silver certificates, Series 1923, consists of two denominations, $1 and $5. Washington is portrayed on the $1 and Lincoln on the $5. On the latter note, Lincoln is shown in the center of a circular design and therefore this note is sometimes called the "porthole" note.
Refunding certificates
The U.S. government authorized refunding certificates, on Feb. 26, 1879, to reduce the circulation of the "fiat" greenbacks when specie payments were resumed. The more notes that were converted to non-legal tender obligations, the less cash that the Treasury had to pay out on its paper obligations. The face design of the notes, issued in a $10 denomination only, bears the portrait of Benjamin Franklin (most probably based on the painting by James Barton Longacre).
The 4 percent annual interest was to accumulate indefinitely. However, by 1907 the $10 note was worth $21.30 so Congress passed a law that allowed the government to stop payment on July 1 of that year.
Treasury or coin notes
The Legal Tender Act of July 14, 1890, authorized Series 1890 and 1891 coin notes in denominations of $1 to $1,000. The Treasury Department used these notes to purchase silver bullion. It was left to the secretary of the treasury to decide if gold or silver would be paid out when the notes were redeemed. The redemption of the notes almost bankrupted the Treasury by 1893 and caused a major panic.
National bank notes
The national bank notes were authorized by the National Currency Act of Feb. 25, 1863, and National Banking Act of June 3, 1864, and were issued by chartered banks from 1863 to 1928.
During the Civil War coins of gold and silver were hoarded and practically disappeared from circulation. The unsecured legal tender notes commonly known as "greenbacks" were not popular and not readily accepted by skeptical persons having no confidence in the government's promise to pay.
Although Secretary of the Treasury Salmon P. Chase recommended a national bank currency secured by government bonds in his financial report of December 1861, the National Currency Act was not passed until February 1863. Spencer M. Clark, chief of construction of the Treasury Department, as early as April 1862 conceived the plan to have the national banks issue their own currency. Chase endorsed the plan and directed Clark to invite artists and engravers to submit proposals and designs.
Clark had previously suggested that historic pictures be used as back designs for the "greenbacks" of 1862 claiming that these designs offered greater protection against counterfeiting. His proposed designs were not adopted for the legal tender notes, but were adopted for the national bank notes issued under Secretary of the Treasury W.P. Fessenden. Clark suggested that these designs cover the entire back of the notes, but while the designs were adopted, the size of each was reduced to allow space for denomination and legends.
National banks qualifying under terms of the act were granted 20-year charters that were renewable for 20-year periods. Banks so chartered were permitted to issue national bank notes not to exceed 90 percent of the total of the U.S. government bonds deposited with the treasurer of the United States.
Early issues will be found with the imprints of the American Bank Note Co, Continental Bank Note Co. and National Bank Note Co. These companies supplied the paper and delivered the printed notes to the Treasury. The Bureau then imprinted the Treasury number and Treasury seal.
The History of the Bureau of Engraving and Printing supplies this information: "National bank notes were printed exclusively by private contractors until September 1875. Thereafter this type of currency was partially printed by the Bureau of Engraving and Printing. Beginning in October 1877, the Bureau executed all work in connection with the printing of national currency."
Some notes will be found bearing the imprint of one of the three bank note companies in the design, and in very small type in the margin of the note, the notation: "Printed at the Bureau of Engraving and Printing."
The dates appearing on national bank notes do not always indicate the date the charter was granted, nor the date the notes were issued. Nor do these dates denote the term of office of the Treasury officials whose signatures appear on the notes. Plates with the names of the U.S. treasurer and register of the treasury were frequently used after the officials left office. The date appearing on the note is usually later than the granting of the charter. Some banks organized late in the First Charter period continued to issue Series 1875 notes until February 1902.
At the close of 1928, 13,269 banks had been chartered but many did not issue bank notes. Notes issued by banks in small communities were usually scarcer than those of large city banks. This thinking has at times been upset when a small-town bank released a stock of notes held in its reserve funds.
In addition to the engraved signatures of the two Treasury officials, national bank notes have the signatures of two bank officers, usually the president and cashier. Early issues did not carry the plate number on face or back.
The First Charter notes of $1 and $2 denominations were usually printed in sheets of three $1 notes and one $2 note. Check letters on notes so printed are A, B, and C, on the $1 notes and A on the $2 note. Known exceptions to "three ones and a two" are:
The Westchester County National Bank, Peekskill, N.Y., Charter 1422; The Merchants National Bank, Bangor, Maine, Charter 1437; The City National Bank, Manchester, N.H., Charter 1530. The above three banks were supplied with sheets of two $1 notes, check letters A and B, and two $2 notes, check letters A and B.
The other known exception is the First National Bank of Philadelphia, with sheets of four $1 and sheets of four $2 notes.
The word "National" appears in the title of all chartered banks with the exception of The Bank of North America, Philadelphia, which was allowed to retain the title it used as a state bank.
To assist in sorting notes presented for redemption, a large letter was printed with the charter numbers on national bank notes for a period of about 25 years, approximately 1901-1925. These regional letters indicated the geographical area or region in which the issuing bank was located, and may be found on Second and Third Charter notes. Six letters were used as follows: E – Eastern Region, M – Middle States Region, N – New England Region, P – Pacific Region (including Alaska and Hawaii), S – Southern Region and W – Western Region.
Bank charter numbers were overprinted on Series 1875 and all later series, and may also be found on some notes of the Original Series. The exact position varies on the face of the notes. These numbers on the first issue are in red with the exception of a very few banks that were supplied with notes bearing black charter numbers.
The First Charter period covered the years 1862-1882.
The first issue of national bank notes is known as the "Original Series." This was followed by Series 1875. These two series comprise the issue of First Charter notes, and were issued in denominations of $1 to $1,000. Very few banks issued First Charter notes in denominations higher than $100.
The obligation of the issuing bank to pay appears on the face of the notes and reads: "This note is secured by Bonds of the United States, deposited with the United States Treasurer at Washington. The ... [Bank] ... will pay the Bearer on Demand ... Dollars."
Gold certificates
Acts of March 3, 1863, July 12, 1882, March 14, 1900, and Dec. 24, 1919, authorized the issuance of gold certificates.
First, Second and Third Issues are considered noncollectible, having been used principally in transactions between banks. Some of these issues were uniface. In the First Issue, denominations ranged from $20 to $10,000, in later issues $100 to $10,000. The $20 and $100 certificates of these issues are extremely rare. The higher denominations have not been discovered. Dates of issue were filled in with pen and ink on these three issues.
Fourth Issue of Series 1882 is as follows:
$20 to $10,000 denomination. As with the first three issues, denominations higher than $100 are extremely rare, practically unknown.
The obligation to pay in gold is on the face of the note. It reads: "This certifies that there have been deposited in the Treasury of the United States ... Dollars in Gold Coin, payable to the Bearer on Demand." This issue is indicated as "Department Series" on the face of the certificates.
Fifth Issue of Series 1888 is as follows:
Two denominations only: $5,000 James Madison, portrait at left. Back design: "5000" and eagle. $10,000 Andrew Jackson, portrait at left, Back design: "10000" and eagle with flag.
Sixth Issue of Series 1900 is as follows:
$10,000 only. Andrew Jackson, as on Series 1888. Back design same as 1888.
Seventh Issue of Series 1905, 1906 and 1907 is as follows:
$10, Series 1907. Michael Hillegas, center, U.S. treasurer 1775-1789. Large "X" Roman equivalent of "10" at left.
$20, Series 1905, George Washington. The blending of gold, red, black and white has caused this note to be known as the "Technicolor" note.
$20, Series 1906, George Washington. Gold and black design with Roman numeral "XX."
The back design of gold for this series, carries no inscription, simply the designation "Gold Certificate," the denomination and the seal.
Eighth Issue of Series 1907 is as follows:
$1,000, Alexander Hamilton. One denomination.
Ninth Issue of Series 1913 is as follows:
$50, Series 1913. Portrait of Grant. Issued with two signature combinations, both of which were offered in the Grinnell sale in 1945. Series 1913 and Series 1922, were the only two issues of the $50 denomination.
Last Issue of Series 1922 is as follows:
$10 to $1,000 denominations. All bear signature combination Speelman-White.
A legend was added to the face of the notes: "This certificate is a Legal Tender in the amount thereof, in payment of all debts and dues public and private. Acts of March 14, 1900, as amended, and December 24, 1919."
$10, Michael Hillegas, first U.S. treasurer.
$20, George Washington
$50, Ulysses Grant
$100, Thomas H. Benton
$500, Abraham Lincoln
$1,000, Alexander Hamilton
The back designs in gold feature the seal, the denomination and the words "United States of America." There is no legend or inscription.
National gold bank notes
The national gold bank notes are gold-tinted and are extremely rare. Ten national gold banks were authorized by Congress to assuage the burden of handling the gold produced by the California Gold Rush. Nine of the banks were in California and one was in Boston. It is generally believed that the Kidder National Gold Bank of Boston did not circulate gold notes, though proof impressions do exist.
Authorized denominations were $5 to $5,000, redeemable in gold. Since the gold banks were also national banks, it was necessary for them to deposit U.S. bonds as security with the U.S. treasurer. The obligation on these notes is similar to the national bank notes except that the gold bank notes were payable in gold coin.
Federal Reserve Bank notes
The large-size Federal Reserve Bank notes were authorized by the Federal Reserve Acts of Dec. 23, 1913, and April 23, 1918. They were issued in two series in denominations of $1 to $50 and are often confused with national bank notes because they have the inscription "National Currency" across the top. They have blue seals and blue serial numbers.
The first issue, Series 1913, consisted only of $5, $10 and $20 notes issued by the Federal Reserve Banks of Atlanta, Chicago, Kansas City, Dallas and San Francisco. The San Francisco Federal Reserve Bank issued only $5 notes.
The obligation to pay the bearer is similar to that on the first charter national bank notes, differing only slightly in wording but not in meaning.
The second issue, Series 1918, consisted of $1, $2, $5, $10, $20 and $50 notes issued by all 12 Federal Reserve Banks (though all banks did not necessarily issue all denominations).
The obligation to pay the bearer differs completely from the first issue, reading "Secured by United States Bonds or Certificates of Indebtedness or one-year gold notes."
Although Federal Reserve Bank notes are a rather recent issue, all are quite scarce. Treasury Department records show that only slightly more than $2 million is outstanding from a total issue of nearly $762 million.
Federal Reserve notes, Series 1914 and 1918
Federal Reserve Act, Dec. 23, 1913.
Series 1914, Red Seals, $5 to $100, scarce. Signatures: John Burke, treasurer of the United States; Wm. G. McAdoo, secretary of the treasury.
Series 1914, Blue Seals, $5 to $100.
Series 1918, Blue Seals, $500 to $10,000.
Blue Seal signatures: John Burke-Wm. G. McAdoo; John Burke-Carter Glass; John Burke-D.F. Houston; Frank White-A.W. Mellon.
There are three types of notes with White-Mellon signatures. Type one: District numeral and letter, rather large, lower left and upper right. Most common of the three types. Type two: Smaller numerals and letters of the various districts. Type three: Larger numerals and letters, slightly to the left and higher. Seals closer to center of note. Scarcest of the three types.
Unlike the Federal Reserve Bank notes, the obligation to pay is by the United States and reads: "The United States of America will pay the Bearer on Demand ... Dollars."
Face designs of Series 1914 are as follows:
Portraits of presidents featured on Federal Reserve Bank notes, are repeated on Federal Reserve notes on denominations $5 to $50, but are shown in center oval of the face design. Seal with numeral and letter of issuing bank is at left, and seal of the Treasury is at right. $100 Series 1914, Portrait of Benjamin Franklin, American statesman.
Face designs of Series 1918 all with Blue Seals are as follows:
$500, John Marshall, secretary of state and chief justice of the United States.
$1,000, Alexander Hamilton, first secretary of the treasury.
$5,000, James Madison, fourth president of the United States.
$10,000, Salmon P. Chase, secretary of treasury under Lincoln.
Back designs of Series 1914 and 1918, Red and Blue seals are as follows:
Series 1914, $5 to $50 same as back design of the Federal Reserve Bank notes. The back design of the $100 note features five allegorical figures.
Back Designs of Series 1918 Blue Seals are as follows:
Series 1918, $500, DeSoto discovering the Mississippi, as on the $10 First Charter, national bank note.
Series 1918, $1,000, American eagle with flag.
Series 1918, $5,000, Washington resigning his commission, as on the $1,000 First Charter note.
Series 1918, $10,000, Embarkation of the Pilgrims, as on the $50 First Charter note.
The lengthy inscription in the lower border of the back design differs from that on the Federal Reserve Bank notes. It stipulates that the note is payable in gold, and reads:
"This note is receivable by all national and member banks and the Federal Reserve Banks, and for all taxes, customs and other public dues. It is redeemable in gold on demand at the Treasury Department of the United States in the city of Washington, District of Columbia, or in gold or lawful money at any Federal Reserve Bank."