The Civil war forced the US government to find for the circulation of money new solutions that shall not jeopardize the federal reserves of precious metals. The Acts of Congress which were issued in a rapid succession from 1861 to 1863 created the modern US currency and the famous greenback.
The Demand Notes established in 1861 for the denominations of $ 5, 10 and 20 were only redeemable on demand in coins and thereby offered a limited solution to the money problem. The Legal Tender Note generalizes in 1862 the use of paper currency for most categories of payments and adds higher values : $ 50, 100, 500 and 1000.
The government immediately organizes the replacement of the Demand Notes by the Legal Tender Notes and extends the authorized limit to $ 450 million by the Third Legal Tender Act of March 3, 1863. This is sufficient : this total amount will not be exceeded.
The permission to extend the editing of notes is given on 10 March 1863. This date is shown on the successive prints of the same edition, most often along with a 'New Series' mark which means a later print at an unidentified date.
Of course these early Legal Tender Notes are highly sought by collectors. An extremely rare $ 1000 Type 1862 - New Series was sold for $ 880K including premium by Stack's Bowers on August 15, 2013.
22 copies of the $ 100 Type 1863 survive. A New Series graded Choice New 63 by PCGS Currency was sold for $ 305K including premium by Heritage in January 2013. Another note in the same condition was sold by coincidence also for $ 305K including premium by Lyn Knight on June 19, 2015.
On June 4 in Memphis, Lyn Knight sells a $ 100 Type 1863 - New Series graded Choice About New 55 PPQ by PCGS. This grade lower than the two examples above is due to a less than Gem left margin. This defect is compensated by the PPQ qualification meaning that its paper quality is perfect. This note is estimated $ 250K, lot 2047.
The same auction offers as lot 2045 a $ 50 Type 1863 - New Series graded 30 VF by PCGS. This variety is highly rare at auction. It is estimated $ 100K, lot 2045.
Here is the link to the auction house's website. The two lots for the next sale are shown in the article shared by Numismatic News.
RESULTS BEFORE FEES
$ 230K for the $ 100
$ 85K for the $ 50
The Demand Notes established in 1861 for the denominations of $ 5, 10 and 20 were only redeemable on demand in coins and thereby offered a limited solution to the money problem. The Legal Tender Note generalizes in 1862 the use of paper currency for most categories of payments and adds higher values : $ 50, 100, 500 and 1000.
The government immediately organizes the replacement of the Demand Notes by the Legal Tender Notes and extends the authorized limit to $ 450 million by the Third Legal Tender Act of March 3, 1863. This is sufficient : this total amount will not be exceeded.
The permission to extend the editing of notes is given on 10 March 1863. This date is shown on the successive prints of the same edition, most often along with a 'New Series' mark which means a later print at an unidentified date.
Of course these early Legal Tender Notes are highly sought by collectors. An extremely rare $ 1000 Type 1862 - New Series was sold for $ 880K including premium by Stack's Bowers on August 15, 2013.
22 copies of the $ 100 Type 1863 survive. A New Series graded Choice New 63 by PCGS Currency was sold for $ 305K including premium by Heritage in January 2013. Another note in the same condition was sold by coincidence also for $ 305K including premium by Lyn Knight on June 19, 2015.
On June 4 in Memphis, Lyn Knight sells a $ 100 Type 1863 - New Series graded Choice About New 55 PPQ by PCGS. This grade lower than the two examples above is due to a less than Gem left margin. This defect is compensated by the PPQ qualification meaning that its paper quality is perfect. This note is estimated $ 250K, lot 2047.
The same auction offers as lot 2045 a $ 50 Type 1863 - New Series graded 30 VF by PCGS. This variety is highly rare at auction. It is estimated $ 100K, lot 2045.
Here is the link to the auction house's website. The two lots for the next sale are shown in the article shared by Numismatic News.
RESULTS BEFORE FEES
$ 230K for the $ 100
$ 85K for the $ 50
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