Paper Currency
Except otherwise stated, all results include the premium.
Intro
The US finances were drained since the panic of 1857 worsened by the loss of the gold stock in the sinking of the SS Central America. President Buchanan was misled when fighting speculation as the major cause of the economic disaster. When Lincoln was elected President on November 6, 1860, the country was close to bankruptcy.
The reaction does not wait for the new administration. On March 2, 1861, two days before Lincoln's inauguration, the Morrill Tariff is one of Buchanan's last signed Acts. This act intending to revive the industrial activity surcharges imports and authorizes the government to create bonds. It thus puts an end to the previous proceeding of the Treasury to redeem any debt in specie payment.
One of the first financial initiatives of the Lincoln administration is the creation of a loan note pre-printed in value and duration based on the Morrill Act. The first issues are a 60-day note with three denominations and 6% interest and a two-year note with four denominations and an interest of 6% per annum.
The release related to the Morrill Act was limited to $ 10 million, to be compared with the $ 64 million of the public debt. The Lincoln administration understands the benefits of the Treasury's issuance of paper money and the development of an operational circulation will be extremely rapid.
The Act of July 17, 1861 authorizes an emission of $ 250 million, of which $ 50 million may be interest-free. The Act of August 5, 1861 defines the conditions of this operation. The new note excluding an interest is the Demand Note. Easy to use for any financial transaction, the Demand Note is the first modern federal bill.
The note with interest is indeed not interrupted by the Act of July 17 : three-year notes are created with coupons for phased payments. To differentiate them from the other Treasury Notes, they are designated as Interest Bearing Note, this wording being also applied a posteriori to the notes issued under the Morrill Act.
Bearers did not have a reason to hoard such notes which quickly gave them a little money, especially in that period of civil war. Only two units issued under the Morrill Act survive, both at $ 50 for two years after date. One of them is kept in a government institution.
The other example is thus the only one of its whole category in private hands. It was dated August 9, 1861 in handwriting by the clerk and signed by the bearer. It was sold for $ 605K by Heritage-CAA in May 2001 and for $ 370K by Heritage in May 2005. A comment in the 2005 catalog warned very fairly that the 2001 result was impossible to reach again by that date.
This Interest Bearing Note graded Very Fine 25 by PCGS was sold for $ 1.02M by Stack's Bowers in Philadelphia on August 16, 2018, lot 2021.
The reaction does not wait for the new administration. On March 2, 1861, two days before Lincoln's inauguration, the Morrill Tariff is one of Buchanan's last signed Acts. This act intending to revive the industrial activity surcharges imports and authorizes the government to create bonds. It thus puts an end to the previous proceeding of the Treasury to redeem any debt in specie payment.
One of the first financial initiatives of the Lincoln administration is the creation of a loan note pre-printed in value and duration based on the Morrill Act. The first issues are a 60-day note with three denominations and 6% interest and a two-year note with four denominations and an interest of 6% per annum.
The release related to the Morrill Act was limited to $ 10 million, to be compared with the $ 64 million of the public debt. The Lincoln administration understands the benefits of the Treasury's issuance of paper money and the development of an operational circulation will be extremely rapid.
The Act of July 17, 1861 authorizes an emission of $ 250 million, of which $ 50 million may be interest-free. The Act of August 5, 1861 defines the conditions of this operation. The new note excluding an interest is the Demand Note. Easy to use for any financial transaction, the Demand Note is the first modern federal bill.
The note with interest is indeed not interrupted by the Act of July 17 : three-year notes are created with coupons for phased payments. To differentiate them from the other Treasury Notes, they are designated as Interest Bearing Note, this wording being also applied a posteriori to the notes issued under the Morrill Act.
Bearers did not have a reason to hoard such notes which quickly gave them a little money, especially in that period of civil war. Only two units issued under the Morrill Act survive, both at $ 50 for two years after date. One of them is kept in a government institution.
The other example is thus the only one of its whole category in private hands. It was dated August 9, 1861 in handwriting by the clerk and signed by the bearer. It was sold for $ 605K by Heritage-CAA in May 2001 and for $ 370K by Heritage in May 2005. A comment in the 2005 catalog warned very fairly that the 2001 result was impossible to reach again by that date.
This Interest Bearing Note graded Very Fine 25 by PCGS was sold for $ 1.02M by Stack's Bowers in Philadelphia on August 16, 2018, lot 2021.
1866 Gold Certificate
2013 SOLD for $ 2.1M by Heritage
The first federal American paper money was released during the Civil War, as a way to help the debtors to repay the government. The idea of promoting the gold that abounds in the reserves of the Treasury in New York went soon afterward.
The act of Congress of March 3, 1863 authorized the issue of Gold certificates redeemable only at the Treasury against gold coins of the designated amount. Six denominations are allowed: $ 20, 100, 500, 1000, 5000 and 10000.
The equivalence between metal and paper would be a good idea if the price of the raw metal was immutable. After a relatively short time during which the success of the operation can be considerable, a party is aggrieved: either the government or the speculators. The papers are reimbursed and disappear.
Very few units of the first issue of the top five denominations have survived. None $ 500 and $ 10,000. The only known example in $ 1000 and $ 5000, and two of the three known in $ 100 are in the collections of the Smithsonian.
The interest of collectors at the only "1863" $ 100 certificate in private hands is obvious, especially since it is graded PCGS Apparent Extremely Fine 40. It is dated December 13, 1866.
It was sold for $ 2.1M from a lower estimate of $ 1.5M by Heritage on April 26, 2013, lot 18171.
The act of Congress of March 3, 1863 authorized the issue of Gold certificates redeemable only at the Treasury against gold coins of the designated amount. Six denominations are allowed: $ 20, 100, 500, 1000, 5000 and 10000.
The equivalence between metal and paper would be a good idea if the price of the raw metal was immutable. After a relatively short time during which the success of the operation can be considerable, a party is aggrieved: either the government or the speculators. The papers are reimbursed and disappear.
Very few units of the first issue of the top five denominations have survived. None $ 500 and $ 10,000. The only known example in $ 1000 and $ 5000, and two of the three known in $ 100 are in the collections of the Smithsonian.
The interest of collectors at the only "1863" $ 100 certificate in private hands is obvious, especially since it is graded PCGS Apparent Extremely Fine 40. It is dated December 13, 1866.
It was sold for $ 2.1M from a lower estimate of $ 1.5M by Heritage on April 26, 2013, lot 18171.
1869 Rainbow Notes ex Joel Anderson
1
$ 500
2019 SOLD for $ 1.44M by Stack's Bowers
In 1869 the government changed the design of the entire Legal Tender Notes range, from $ 1 to $ 1000. The Treasury Note wording appearing on these notes should not be used today to avoid confusion with the Treasury Notes issued in 1890 for purchasing silver. The use of blue paper and of a palette of green, blue and red inks has earned this series the sobriquet of Rainbow Notes.
The $ 500 and $ 1000 are among the greatest rarities in the US federal currency. Joel Anderson had collected an example of each denomination. These nine tickets were sold separately by Stack's Bowers on February 28, 2019. They were graded by PCGS Currency. In this exceptional set, only the $ 1000 is not PPQ.
The $ 500 and $ 1000 are each the only unit of their design in private hands. The two $ 500 and the $ 1000 kept in federal collections are in lesser condition.The $ 500 graded Choice About New 55, was sold for $ 1.44M, lot 4015.
With its nuanced colors, the series of 1869 participates in the policy of fraud prevention. The blue paper had been patented in 1866 by the Willcox family which operated from 1729 to 1886 in their Ivy Mills in Pennsylvania. In 1775 the paper for the Continental Note with a polychrome stripe had been provided by them.
Around 1869 the US Treasury also supported the development for postal and revenue stamps of a paper that changes its color when the fraudster removes the cancellation ink with a chemical. This paper will be patented in 1871 by James Willcox under the name of Chameleon Paper.
The Rainbow Notes are being replaced by new designs from 1874.
The $ 500 and $ 1000 are among the greatest rarities in the US federal currency. Joel Anderson had collected an example of each denomination. These nine tickets were sold separately by Stack's Bowers on February 28, 2019. They were graded by PCGS Currency. In this exceptional set, only the $ 1000 is not PPQ.
The $ 500 and $ 1000 are each the only unit of their design in private hands. The two $ 500 and the $ 1000 kept in federal collections are in lesser condition.The $ 500 graded Choice About New 55, was sold for $ 1.44M, lot 4015.
With its nuanced colors, the series of 1869 participates in the policy of fraud prevention. The blue paper had been patented in 1866 by the Willcox family which operated from 1729 to 1886 in their Ivy Mills in Pennsylvania. In 1775 the paper for the Continental Note with a polychrome stripe had been provided by them.
Around 1869 the US Treasury also supported the development for postal and revenue stamps of a paper that changes its color when the fraudster removes the cancellation ink with a chemical. This paper will be patented in 1871 by James Willcox under the name of Chameleon Paper.
The Rainbow Notes are being replaced by new designs from 1874.
2
$ 1000
2019 SOLD for $ 1.44M by Stack's Bowers
In the sale of the Anderson collection of rainbow notes narrated above, by Stack's Bowers on February 28, 2019, the $ 1000, graded About New 53 by PCGS, was sold at lot 4016 for $ 1.44M, same price as the $ 500 narrated above.
Lower denominations are obviously less rare Their grade is greater than or equal to Very Choice New 64. The $ 50, sold for $ 264K at lot 4012, and the $ 100, sold for $ 300K at lot 4014 are the finest graded by PCGS for their respective values.
Lower denominations are obviously less rare Their grade is greater than or equal to Very Choice New 64. The $ 50, sold for $ 264K at lot 4012, and the $ 100, sold for $ 300K at lot 4014 are the finest graded by PCGS for their respective values.
1887-1889 Gold Certificate Series of 1882
2014 SOLD for $ 1.4M by Heritage
The Series of 1882 Gold Certificates represent a pivotal large-size U.S. paper money issue, marking the transition of gold certificates toward broader (though still limited) public circulation while retaining their core role as gold-backed instruments. These notes, with their distinctive orange/gold backs, were part of the fourth major issue of gold certificates (following the 1863/1865, 1870, and 1875 series).
Reason for the Reform/Issuance
Gold certificates originated under the Act of March 3, 1863, primarily to help the Treasury accumulate and manage gold coin/bullion during and after the Civil War era, when gold was scarce or hoarded. Early issues (pre-1882) were largely for interbank or institutional use in settling large gold accounts, as transporting physical gold coin was cumbersome and expensive. They were often payable to a specific order/payee rather than freely transferable.
The Act of July 12, 1882, reformed and expanded the framework by authorizing gold certificates in denominations "not less than $20" (adding the $20 and $50 to the lineup alongside higher values). A key innovation was making the Series 1882 the first uniformly payable to the bearer on demand. This made the notes transferable—anyone holding them could redeem them for gold coin at the Treasury—without needing a named payee. This shift aimed to make them more practical for commerce while still backed 100% by deposited gold. The same 1882 legislation (or related provisions around that time) also granted the Secretary of the Treasury authority to suspend new issuances if gold reserves dropped too low, a power exercised during the 1893 banking panic.
Design-wise, the 1882 series retained the same obverse portraits as the 1875 series but introduced a new reverse featuring multiple eagles and intricate border work (replacing simpler or blank backs on earlier issues). Early printings of the 1882 series included a holdover "triple-signature" or countersigned feature (with an Assistant Treasurer's signature, often Thomas C. Acton in New York), along with text specifying redemption at the New York office. This was quickly phased out for a standardized two-signature design (Register of the Treasury + Treasurer of the United States), reflecting the move away from localized countersignatures.
Denominations and Design Highlights
High-denomination 1882 Gold Certificates ($500, $1,000, $5,000, and $10,000) are exceptionally rare today, often with populations in the single digits or low teens for specific Friedberg (Fr.) sub-numbers. Reasons include:
Close Out of the Series
The 1882 series did not have a sharp "end" date like some others; notes were printed and issued over decades (into the early 1900s for some signature combinations), with varieties spanning from the early 1880s through at least 1906 for higher values. Production reflected changing Treasury officials (signatures) and occasional interruptions due to gold reserve concerns or policy shifts. The broader gold certificate program continued with later series (e.g., 1900, 1907, 1922), but the 1882 design/type persisted in use until the large-size era ended around 1928–1933. The entire gold certificate system for public circulation effectively closed out after 1933 due to the abandonment of the domestic gold standard. Private possession was illegal until 1964 (except for the 1934 series, which remained restricted). Today, 1882 notes survive primarily as collectibles, with most redeemed or destroyed long ago.
Reason for Friedberg Sub-Variants
In Paper Money of the United States by Arthur L. and Ira S. Friedberg, the 1882 Gold Certificates are cataloged with numerous sub-variants (e.g., Fr. 1170s through 1218s, with letter suffixes like a, b, c, d, e, etc., up to g in some cases). These distinctions arise from standard numismatic cataloging practices for large-size notes and reflect real production differences:
Overall, the 1882 series bridges the early institutional-focused gold certificates and the more commercial large-size issues of the early 20th century. Its bearer-payable reform made it a landmark, but survival rates—especially for high denominations and early varieties—make it a challenging and prestigious area for advanced collectors. Values range from a few hundred dollars for worn common types to hundreds of thousands (or more) for top rarities in collectible grades.
Reason for the Reform/Issuance
Gold certificates originated under the Act of March 3, 1863, primarily to help the Treasury accumulate and manage gold coin/bullion during and after the Civil War era, when gold was scarce or hoarded. Early issues (pre-1882) were largely for interbank or institutional use in settling large gold accounts, as transporting physical gold coin was cumbersome and expensive. They were often payable to a specific order/payee rather than freely transferable.
The Act of July 12, 1882, reformed and expanded the framework by authorizing gold certificates in denominations "not less than $20" (adding the $20 and $50 to the lineup alongside higher values). A key innovation was making the Series 1882 the first uniformly payable to the bearer on demand. This made the notes transferable—anyone holding them could redeem them for gold coin at the Treasury—without needing a named payee. This shift aimed to make them more practical for commerce while still backed 100% by deposited gold. The same 1882 legislation (or related provisions around that time) also granted the Secretary of the Treasury authority to suspend new issuances if gold reserves dropped too low, a power exercised during the 1893 banking panic.
Design-wise, the 1882 series retained the same obverse portraits as the 1875 series but introduced a new reverse featuring multiple eagles and intricate border work (replacing simpler or blank backs on earlier issues). Early printings of the 1882 series included a holdover "triple-signature" or countersigned feature (with an Assistant Treasurer's signature, often Thomas C. Acton in New York), along with text specifying redemption at the New York office. This was quickly phased out for a standardized two-signature design (Register of the Treasury + Treasurer of the United States), reflecting the move away from localized countersignatures.
Denominations and Design Highlights
- Denominations: $20 (James A. Garfield), $50 (Silas Wright), $100 (Thomas Hart Benton), $500 (Abraham Lincoln), $1,000 (Alexander Hamilton), $5,000 (James Madison), and $10,000 (Andrew Jackson).
- All featured a gold (or brown/red) Treasury seal on the face and the vivid orange/gold back typical of the series.
- The notes circulated to some extent in commerce (especially lower denominations), but higher values remained mostly institutional.
High-denomination 1882 Gold Certificates ($500, $1,000, $5,000, and $10,000) are exceptionally rare today, often with populations in the single digits or low teens for specific Friedberg (Fr.) sub-numbers. Reasons include:
- Limited original print runs for very high values, which were never intended for everyday public use but for large interbank transfers or reserves.
- Heavy institutional handling and subsequent redemption/destruction. Most were turned in over time as gold certificates were phased out.
- Post-1933 recall: Executive actions and the Gold Reserve Act of 1934 ended private gold ownership and convertibility; notes were called in, with many destroyed or held by the Treasury/Federal Reserve. Survivors often surface only from old banking or estate holdings.
- Specific early signature/seal combinations (e.g., certain brown seals or large red seals) had minuscule issuance, and gaps in production (e.g., between ~1891–1898 for some denominations, with no new plates ordered) further limited totals. For example, certain $100 and $1,000 varieties have only 2–5 known examples, with many locked in institutional collections (e.g., Federal Reserve banks or Smithsonian). Auction records frequently show these bringing six figures, especially in mid-grades.
Close Out of the Series
The 1882 series did not have a sharp "end" date like some others; notes were printed and issued over decades (into the early 1900s for some signature combinations), with varieties spanning from the early 1880s through at least 1906 for higher values. Production reflected changing Treasury officials (signatures) and occasional interruptions due to gold reserve concerns or policy shifts. The broader gold certificate program continued with later series (e.g., 1900, 1907, 1922), but the 1882 design/type persisted in use until the large-size era ended around 1928–1933. The entire gold certificate system for public circulation effectively closed out after 1933 due to the abandonment of the domestic gold standard. Private possession was illegal until 1964 (except for the 1934 series, which remained restricted). Today, 1882 notes survive primarily as collectibles, with most redeemed or destroyed long ago.
Reason for Friedberg Sub-Variants
In Paper Money of the United States by Arthur L. and Ira S. Friedberg, the 1882 Gold Certificates are cataloged with numerous sub-variants (e.g., Fr. 1170s through 1218s, with letter suffixes like a, b, c, d, e, etc., up to g in some cases). These distinctions arise from standard numismatic cataloging practices for large-size notes and reflect real production differences:
- Signature combinations: Changes in Treasury officials (Register of the Treasury and Treasurer of the United States) over time created distinct varieties (e.g., Bruce-Gilfillan, Rosecrans-Hyatt, Lyons-Roberts, Vernon-Treat, Napier-McClung, Parker-Burke, Teehee-Burke). Some short-tenure overlaps (like certain 1891–1893 pairings) resulted in tiny print runs and extreme rarity.
- Seal types and colors: Brown seals (early issues), large red seals, and small red seals. These changed over time for security, aesthetic, or production reasons.
- Countersignature/triple-signature varieties: Early 1882 notes (especially payable at New York) included an engraved or hand-signed countersignature by an Assistant Treasurer (e.g., Thomas C. Acton). These "triple sig" notes are a distinct sub-type; the feature was dropped after initial printings, creating Fr. variants like 1189a.
- Minor plate or text changes: Differences in redemption wording (e.g., "payable at New York" vs. general bearer language after standardization) or other engraved details.
- Issuance timing and gaps: Production pauses (e.g., no new plates 1891–1898 for some) meant later varieties had different characteristics.
Overall, the 1882 series bridges the early institutional-focused gold certificates and the more commercial large-size issues of the early 20th century. Its bearer-payable reform made it a landmark, but survival rates—especially for high denominations and early varieties—make it a challenging and prestigious area for advanced collectors. Values range from a few hundred dollars for worn common types to hundreds of thousands (or more) for top rarities in collectible grades.
Conceived in 1863, the Gold certificate is originally a recognition of a nominative debt by the US government, redeemable at face value against gold coins. At the time of the Civil War, it was a way to better control the circulation of dollars.
The process changes in 1882, when these notes are no longer individual but become payable to the bearer.
American people are pragmatic. The paper currency of the nineteenth century was not hoarded. The scarcity of Gold certificates increased further in 1933 during the great offensive by Roosevelt to revive the economy, when it became illegal to own them as for gold metal in coins and bullion.
The Series of 1882 included a wide range of monetary values. The $ 5,000 and $ 10,000 are known only in two copies each, according to the Friedberg guide. The classification of this author includes eight variants in a single type for the $ 1000 certificate and seven variants divided into two types for the $ 500.
On June 2013 Heritage announced a discovery which looked like an incredible dream to any collector of US currency : an old box had surfaced with four high denomination gold certificates from the Series of 1882 in very fine condition later confirmed VF 35 by PCGS. Coming from the estate of a banker, this hoard had been untouched for more than hundred years.
The rarest was the $ 500 (Friedberg reference Fr. 1215d), the only known copy of this variant apart from another one which is permanently kept in the collection of the Federal Reserve Bank. The other three notes in the hoard were $ 1000 in variants Fr. 1218d, 1218e and 1218f.
They were sold by Heritage on January 10, 2014 : $ 1.4M for the $ 500, $ 880K each for the first two $ 1000 and $ 294K for the latest $ 1000. The $ 500 was illustrated by a video.
Their emission dates are as follows :
$ 500, Fr. 1215d with Rosecrans-Hyatt signatures : 1887-1889
$ 1000, Fr. 1218d with Rosecrans-Huston signatures : 1889-1891
$ 1000, Fr. 1218e with Rosecrans-Nebeker signatures : 1891-1893
$ 1000, Fr. 1218f with Lyons-Roberts signatures : 1898-1905
The Fr. 1215d $ 500 gold certificate was sold for $ 900K by Stack's Bowers on October 25, 2018, lot 3044.
The process changes in 1882, when these notes are no longer individual but become payable to the bearer.
American people are pragmatic. The paper currency of the nineteenth century was not hoarded. The scarcity of Gold certificates increased further in 1933 during the great offensive by Roosevelt to revive the economy, when it became illegal to own them as for gold metal in coins and bullion.
The Series of 1882 included a wide range of monetary values. The $ 5,000 and $ 10,000 are known only in two copies each, according to the Friedberg guide. The classification of this author includes eight variants in a single type for the $ 1000 certificate and seven variants divided into two types for the $ 500.
On June 2013 Heritage announced a discovery which looked like an incredible dream to any collector of US currency : an old box had surfaced with four high denomination gold certificates from the Series of 1882 in very fine condition later confirmed VF 35 by PCGS. Coming from the estate of a banker, this hoard had been untouched for more than hundred years.
The rarest was the $ 500 (Friedberg reference Fr. 1215d), the only known copy of this variant apart from another one which is permanently kept in the collection of the Federal Reserve Bank. The other three notes in the hoard were $ 1000 in variants Fr. 1218d, 1218e and 1218f.
They were sold by Heritage on January 10, 2014 : $ 1.4M for the $ 500, $ 880K each for the first two $ 1000 and $ 294K for the latest $ 1000. The $ 500 was illustrated by a video.
Their emission dates are as follows :
$ 500, Fr. 1215d with Rosecrans-Hyatt signatures : 1887-1889
$ 1000, Fr. 1218d with Rosecrans-Huston signatures : 1889-1891
$ 1000, Fr. 1218e with Rosecrans-Nebeker signatures : 1891-1893
$ 1000, Fr. 1218f with Lyons-Roberts signatures : 1898-1905
The Fr. 1215d $ 500 gold certificate was sold for $ 900K by Stack's Bowers on October 25, 2018, lot 3044.
$ 1000 Treasury Note
The Coinage Act of 1792 based the balance of the American coinage on an invariable 15:1 parity between gold and silver, with the risk of draining the reserves of the government in case of an imbalance.
The underground of North America is rich. After the gold rushes in Carolina and California, the Nevada silver discovered from 1859 flooded the financial communities.
From 1873 on, the government tried in vain to support both the popularity of gold and the abundance of silver. In 1878, an act of Congress guarantees a minimum monthly purchase of silver by the government at the highest rate of the market. Speculators are becoming more pressing.
Many States do not have gold. The dollar is too expensive for them and they expect an inflation to pay their debts. The government reacts by buying huge amounts of silver bullion paid from 1878 with Silver Certificates of Deposit that are redeemable in silver coins.
Silver still does not appeal the users. In 1889 the federal reserves of silver coins reached $ 283 million. They had to find something else. Once again the remedy will be worse than the disease. The Silver Purchase Act of July 14, 1890 doubles the volume of silver purchased by the government while authorizing its payment by a new bill named Treasury Note or Coin Note, redeemable in coins without stipulating the metal.
That decision is known as the Sherman Silver Purchase Act against the wishes of Senator Sherman, the best federal financial official of his time, who was not supporting this operation.
The government buys silver in huge quantities, and pays with a new type of bill named the Treasury Note which can be be repaid either in gold coins or in silver coins. They naively believed that this provision of liquidity would encourage consumerism. The opposite effect, however, was immediate. Due to lack of confidence in maintaining the value of the federal silver, holders of Treasury Notes rushed to gold.
Speculators rush to sell their silver bullion for this paper which they immediately exchange for gold coins. In the year 1890 the price of silver per ounce fell from $ 1.16 to $ 0.69. The increasingly severe crisis will lead to the catastrophic depression of 1893.
The Treasury Notes are issued in seven denominations in 1890, to which the $ 50 will be added in the following year. The Treasury wants to do too well. For the two largest denominations, $ 100 and $ 1000, the ornamental sharpness of the back is intended to discourage counterfeiting. With this intricacy, they become uneasy to inspect with a risk of no longer discriminating between real and fake.
The numbers 0 of these two denominations are huge and ugly. The $ 100 and $ 1000 are pejoratively nicknamed Watermelon and Grand Watermelon, from the look of the green ovals that make the 0 in the numeral figure.
The government understands its design blunders and creates in 1891 a series with new backs without the 'watermelons', which will be just as ephemeral : the production of Treasury Notes ceases after the series of 1891.
The $ 1000 Treasury notes became the rarest units of federal money. The Friedberg guide assigns them with the reference Fr.379, divided in two 1890 variants Fr.379a and b, and the unique variant Fr.379c of the following year.
In 1893, fearing a financial disaster, the Sherman Act is repealed. The Treasury Notes are redeemed. The big denominations were obviously too expensive to be kept in collections.
The underground of North America is rich. After the gold rushes in Carolina and California, the Nevada silver discovered from 1859 flooded the financial communities.
From 1873 on, the government tried in vain to support both the popularity of gold and the abundance of silver. In 1878, an act of Congress guarantees a minimum monthly purchase of silver by the government at the highest rate of the market. Speculators are becoming more pressing.
Many States do not have gold. The dollar is too expensive for them and they expect an inflation to pay their debts. The government reacts by buying huge amounts of silver bullion paid from 1878 with Silver Certificates of Deposit that are redeemable in silver coins.
Silver still does not appeal the users. In 1889 the federal reserves of silver coins reached $ 283 million. They had to find something else. Once again the remedy will be worse than the disease. The Silver Purchase Act of July 14, 1890 doubles the volume of silver purchased by the government while authorizing its payment by a new bill named Treasury Note or Coin Note, redeemable in coins without stipulating the metal.
That decision is known as the Sherman Silver Purchase Act against the wishes of Senator Sherman, the best federal financial official of his time, who was not supporting this operation.
The government buys silver in huge quantities, and pays with a new type of bill named the Treasury Note which can be be repaid either in gold coins or in silver coins. They naively believed that this provision of liquidity would encourage consumerism. The opposite effect, however, was immediate. Due to lack of confidence in maintaining the value of the federal silver, holders of Treasury Notes rushed to gold.
Speculators rush to sell their silver bullion for this paper which they immediately exchange for gold coins. In the year 1890 the price of silver per ounce fell from $ 1.16 to $ 0.69. The increasingly severe crisis will lead to the catastrophic depression of 1893.
The Treasury Notes are issued in seven denominations in 1890, to which the $ 50 will be added in the following year. The Treasury wants to do too well. For the two largest denominations, $ 100 and $ 1000, the ornamental sharpness of the back is intended to discourage counterfeiting. With this intricacy, they become uneasy to inspect with a risk of no longer discriminating between real and fake.
The numbers 0 of these two denominations are huge and ugly. The $ 100 and $ 1000 are pejoratively nicknamed Watermelon and Grand Watermelon, from the look of the green ovals that make the 0 in the numeral figure.
The government understands its design blunders and creates in 1891 a series with new backs without the 'watermelons', which will be just as ephemeral : the production of Treasury Notes ceases after the series of 1891.
The $ 1000 Treasury notes became the rarest units of federal money. The Friedberg guide assigns them with the reference Fr.379, divided in two 1890 variants Fr.379a and b, and the unique variant Fr.379c of the following year.
In 1893, fearing a financial disaster, the Sherman Act is repealed. The Treasury Notes are redeemed. The big denominations were obviously too expensive to be kept in collections.
The Sherman Silver Purchase Act of 1890 (passed July 14, 1890) was a key piece of compromise legislation during the heated "free silver" vs. gold standard debates. It required the U.S. Treasury to purchase 4.5 million ounces of silver bullion per month (roughly the entire domestic production at the time) at market prices, far more than the earlier Bland-Allison Act of 1878. To pay for this silver, the Treasury issued special Treasury Notes of 1890 (also called Coin Notes or Treasury Coin Notes) in denominations from $1 to $1,000. These notes were legal tender, receivable for customs and taxes, and redeemable on demand in coin (gold or silver, at the Secretary's discretion—but in practice, mostly gold to maintain parity and public confidence).
The Act aimed to support silver miners (especially in the West), inflate the money supply to help debtors and farmers, and serve as a political middle ground between silverites and gold advocates. However, it backfired dramatically. Silver's market value continued to fall (due to global oversupply), while holders—fearing devaluation—redeemed the new notes primarily for gold (Gresham's Law in action: "bad" silver-backed money drove out "good" gold). This created a steady drain on the Treasury's gold reserves, eroding confidence in the U.S. commitment to the gold standard. The resulting gold outflows were a major contributor to the Panic of 1893, bank runs, and economic depression. President Grover Cleveland called a special session of Congress, leading to the Act's repeal in November 1893. No new Treasury Notes of this type were issued after the repeal, though existing ones remained legal tender and redeemable.
The $1,000 "Grand Watermelon" Treasury Note
The Series 1890 $1,000 Treasury Note (Friedberg numbers Fr.379a and Fr.379b) is the most famous and iconic example from this short-lived issue. It features:
Why So Rare?
The 1890 $1,000 Watermelon is one of the great rarities in U.S. paper money, with only about 7 known examples in total (across both seal varieties). Of these, just 3 are in private hands (the rest are in institutional/government collections, such as Federal Reserve or Smithsonian holdings). Survival rates are minuscule for several interconnected reasons:
In short, the Sherman Act created these notes as a funding mechanism for silver purchases, but the policy's flaws led to their rapid redemption and the series' quick demise—leaving the high-denomination Watermelon as one of the scarcest and most celebrated artifacts of that turbulent monetary era. Lower-denomination 1890/1891 Treasury Notes are far more available, but the $1,000 remains in a class by itself.
The Act aimed to support silver miners (especially in the West), inflate the money supply to help debtors and farmers, and serve as a political middle ground between silverites and gold advocates. However, it backfired dramatically. Silver's market value continued to fall (due to global oversupply), while holders—fearing devaluation—redeemed the new notes primarily for gold (Gresham's Law in action: "bad" silver-backed money drove out "good" gold). This created a steady drain on the Treasury's gold reserves, eroding confidence in the U.S. commitment to the gold standard. The resulting gold outflows were a major contributor to the Panic of 1893, bank runs, and economic depression. President Grover Cleveland called a special session of Congress, leading to the Act's repeal in November 1893. No new Treasury Notes of this type were issued after the repeal, though existing ones remained legal tender and redeemable.
The $1,000 "Grand Watermelon" Treasury Note
The Series 1890 $1,000 Treasury Note (Friedberg numbers Fr.379a and Fr.379b) is the most famous and iconic example from this short-lived issue. It features:
- Obverse: Portrait of Union General George G. Meade (victor at Gettysburg) at left, with ornate "1000" counters and floral elements.
- Reverse: Extremely elaborate, fully engraved design dominated by three huge green "000" numerals that resemble sliced watermelons—hence the derisive contemporary Treasury nickname "Watermelon" (or "Grand Watermelon" for the $1,000). The back was intentionally ornate to deter counterfeiting, but critics (including Treasury officials) complained it was too crowded, making it hard to spot security fibers in the paper. This led to a simplified reverse design on the follow-up Series 1891 notes.
Why So Rare?
The 1890 $1,000 Watermelon is one of the great rarities in U.S. paper money, with only about 7 known examples in total (across both seal varieties). Of these, just 3 are in private hands (the rest are in institutional/government collections, such as Federal Reserve or Smithsonian holdings). Survival rates are minuscule for several interconnected reasons:
- Tiny original print run: Only around 16,000–18,000 notes were printed for the entire $1,000 denomination across the 1890 series. High-denomination notes were never intended for everyday public use; they circulated almost exclusively in interbank and institutional transfers (large settlements, reserves, etc.). Very few ever reached ordinary commerce or private hands.
- Heavy redemption and destruction: Because these were Coin Notes tied directly to the Sherman Act's silver purchases, they faced intense redemption pressure during the lead-up to and during the 1893 Panic. Holders (especially banks and investors) turned them in for gold or silver coin. Redeemed notes were typically canceled and destroyed by the Treasury. The short lifespan of the series (issuance effectively ended with the 1893 repeal) meant limited time in circulation before most were pulled in.
- High face value: At $1,000 (equivalent to roughly $30,000–$35,000 in today's purchasing power), these were "Grand" notes used by banks and large entities, not individuals. They saw heavy institutional handling, increasing wear and the likelihood of redemption/destruction. Survivors are almost always from old banking hoards or estates.
- Design unpopularity and quick replacement: The ornate "watermelon" reverse was unpopular with both the public and Treasury officials, who viewed it as impractical. The Series 1891 notes quickly superseded it with simpler designs, further limiting production and circulation of the 1890 type. Minor varieties exist based on Treasury seal (large brown seal Fr.379a with Rosecrans-Huston signatures; small red scalloped seal Fr.379b with Rosecrans-Nebeker). These seal/signature differences create sub-variants, but all are ultra-rare.
- Post-1933 factors: Like other large-size notes, many survivors were affected by the end of the gold standard and note recalls, though the primary attrition happened decades earlier due to redemptions.
In short, the Sherman Act created these notes as a funding mechanism for silver purchases, but the policy's flaws led to their rapid redemption and the series' quick demise—leaving the high-denomination Watermelon as one of the scarcest and most celebrated artifacts of that turbulent monetary era. Lower-denomination 1890/1891 Treasury Notes are far more available, but the $1,000 remains in a class by itself.
1
1890 Fr.379a Watermelon
2018 SOLD for $ 2.04M by Stack's Bowers
Seven $ 1000 Grand Watermelons survive, split into two variants : five units in the Fr.379a and two in the Fr.379b.
The top ranked of the seven units is a Fr.379a, graded About New 50 by PCGS. It was sold for $ 1.1M by Lyn Knight in October 2005 and for $ 2.04M by Stack's Bowers on October 25, 2018, lot 3042.
The top ranked of the seven units is a Fr.379a, graded About New 50 by PCGS. It was sold for $ 1.1M by Lyn Knight in October 2005 and for $ 2.04M by Stack's Bowers on October 25, 2018, lot 3042.
2
1890 Fr.379a Watermelon
2013 SOLD for $ 1.53M by Heritage
An Fr.379a was sold for $ 1.53M from a lower estimate of $ 1.25M by Heritage on April 26, 2013 lot 18129. It is graded PCGS Apparent Extremely Fine 45, 'apparent' meaning that a rework invisible to the naked eye has been made. It is one of only two in private hands from five remaining units.
3
1890 Fr.379b Watermelon
2014 SOLD for $ 3.3M by Heritage
The unique example in private hands of the Fr.379b, graded Extremely Fine 40 by PCGS, was sold for $ 3.3M from a lower estimate of $ 2M by Heritage on January 10, 2014, lot 17127.
The third Joel Anderson Collection auction should have several notes that break the million-dollar barrier. https://t.co/uxVDVovEai pic.twitter.com/1EzuHaHo85
— Coin World (@CoinWorld) October 8, 2018
4
1891 Fr.379c
2013 SOLD for $ 2.6M by Heritage
In 1891 the variant Fr.379c removes the watermelon figures. One of them was sold for $ 2.6M from a lower estimate of $ 2M by Heritage on April 26, 2013, lot 18130. This is the only privately owned from two known units. It is graded PCGS Extremely Fine 45 PPQ, with a very slight evidence of circulation.
1891 Silver Certificate
2019 SOLD for $ 1.92M by Stack's Bowers
Interests differ between gold and silver producers. In 1873 the silver dollar is abolished except for trading with the far east. Facing the protests of the silver speculators, the Congress reestablishes the silver dollar in 1878 and associates with it a certificate of deposit refundable in silver coins.
The trend will soon be reversed. To deal with the overabundance of silver, the Congress creates in 1890 the Treasury Note, a certificate of deposit of silver which can be repaid in gold coins or in silver coins. Speculators are appealed by this possibility of playing on both metals at once with the same piece of paper.
A new series of Silver Certificates is prepared in 1891 for all denominations except the $ 500. The highest values of the Silver Certificate are indeed no longer attractive against the Treasury Note. Only 8,000 $ 1000 were printed, of which about 5,600 were circulated.
The redesign effort of the $ 1000 was important. On the face the portrait of William Marcy is transferred from left side to right side. The left side is now illustrated by a Miss Liberty leaning on a shield that displays the denomination. In 1848 Secretary of War Marcy had shipped a gold sample from the California rush for a federal assaying.
This image of Miss Liberty had been prepared in 1877 for a bond. As far as notes are concerned, it is limited to the $ 1000 Silver Certificate of the 1891 series, making its emission the rarest of all US federal currency in terms of design. The completely modified back had also changed its ink color.
Two examples survive. The serial number 1 is kept at the Smithsonian. The other one, graded Very Fine 25 by PCGS, is thus the only one in private hands. It was sold for $ 2.6M on June 11, 2013 in a private sale reported by Stack's Bowers. It was sold for $ 1.92M by Stack's Bowers on February 28, 2019, lot 4037.
The trend will soon be reversed. To deal with the overabundance of silver, the Congress creates in 1890 the Treasury Note, a certificate of deposit of silver which can be repaid in gold coins or in silver coins. Speculators are appealed by this possibility of playing on both metals at once with the same piece of paper.
A new series of Silver Certificates is prepared in 1891 for all denominations except the $ 500. The highest values of the Silver Certificate are indeed no longer attractive against the Treasury Note. Only 8,000 $ 1000 were printed, of which about 5,600 were circulated.
The redesign effort of the $ 1000 was important. On the face the portrait of William Marcy is transferred from left side to right side. The left side is now illustrated by a Miss Liberty leaning on a shield that displays the denomination. In 1848 Secretary of War Marcy had shipped a gold sample from the California rush for a federal assaying.
This image of Miss Liberty had been prepared in 1877 for a bond. As far as notes are concerned, it is limited to the $ 1000 Silver Certificate of the 1891 series, making its emission the rarest of all US federal currency in terms of design. The completely modified back had also changed its ink color.
Two examples survive. The serial number 1 is kept at the Smithsonian. The other one, graded Very Fine 25 by PCGS, is thus the only one in private hands. It was sold for $ 2.6M on June 11, 2013 in a private sale reported by Stack's Bowers. It was sold for $ 1.92M by Stack's Bowers on February 28, 2019, lot 4037.
Special Report
Panic of 1893
The Panic of 1893 (also known as the Silver Panic or part of the Depression of the 1890s) was one of the most severe economic crises in U.S. history. It combined a sharp financial panic with a prolonged depression that featured widespread bank failures, business collapses, mass unemployment, and deep political divisions over monetary policy.
Timeline and Key Events
Main Causes
The crisis had multiple overlapping triggers, but monetary issues centered on the gold standard and silver policy were paramount:
Economic and Social Impacts
The panic directly strained gold-backed instruments. The Sherman Act's Treasury Notes (including the rare high-denomination "Watermelon" $1,000 notes) faced heavy redemptions for gold. For 1882 Gold Certificates, the Act of 1882 had authorized the Secretary to suspend new issuances when gold reserves fell too low; this power was exercised in April 1893, halting production and creating a multi-year gap (roughly 1891–1898) that explains the extreme rarity of certain early Friedberg sub-variants. Existing notes continued in limited use but saw increased redemption pressure. The crisis highlighted vulnerabilities in the gold standard system and accelerated the shift toward later gold certificate series once reserves stabilized.
Resolution and Long-Term Legacy
Repeal of the Sherman Act in November 1893 helped stem the immediate gold drain and restored some confidence. The 1895 Morgan-Belmont bond deal further bolstered reserves. The crisis strengthened the gold standard's defenders but radicalized silver advocates, splitting the Democratic Party and shaping the 1896 election (won by gold-standard Republican William McKinley).
Long-term, the Panic of 1893 exposed the fragility of a decentralized banking system under the gold standard, contributing to later reforms (e.g., the Aldrich-Vreeland Act of 1908 and the Federal Reserve in 1913). It marked a watershed in American economic and political history, accelerating industrialization/consolidation while highlighting tensions between farmers/debtors and Eastern financial interests.
In the context of U.S. currency collecting, the panic's monetary pressures explain the scarcity of certain 1890 Treasury Notes and early 1882 Gold Certificates—many were redeemed and destroyed, leaving few survivors, especially in high denominations. The event remains a textbook case of how policy missteps (well-intentioned silver support) can interact with market forces to trigger widespread financial contagion.
Timeline and Key Events
- Precursor signs (late 1892–early 1893): The Philadelphia and Reading Railroad (heavily overextended from post-Civil War expansion) entered receivership on February 20, 1893. This highlighted vulnerabilities in railroad financing, which had relied heavily on high-interest bonds.
- Outbreak (May 1893): Rumors of distress at the National Cordage Company (a major rope manufacturer attempting to corner the hemp market) triggered loan recalls and its bankruptcy. On May 4–5, 1893 ("Industrial Black Friday"), the New York Stock Exchange saw a massive sell-off. Bank runs began in the interior (Midwest and West) and spread eastward to New York.
- Peak intensity (summer 1893): Over 500 banks suspended or failed (including national, state, private, and savings banks), along with more than 15,000 businesses. Clearinghouse certificates were issued in major cities as emergency currency substitutes.
- Political response: President Grover Cleveland (who took office in March 1893) called a special session of Congress. On August 8, 1893, he urged repeal of the Sherman Silver Purchase Act, blaming it for draining gold reserves. Repeal passed on November 1, 1893, after a filibuster fight.
- Aftermath and second dip: A partial recovery occurred in 1895, but a renewed slump hit in late 1895–early 1896. Full recovery was slow, with lingering high unemployment into 1897–1899. In 1895, the Morgan-Belmont Syndicate (a private banking consortium led by J.P. Morgan) underwrote a major bond sale to replenish Treasury gold reserves when they fell as low as ~$42 million.
Main Causes
The crisis had multiple overlapping triggers, but monetary issues centered on the gold standard and silver policy were paramount:
- Sherman Silver Purchase Act of 1890: This required the Treasury to buy 4.5 million ounces of silver monthly (paid for with new Treasury "Coin Notes" redeemable in gold or silver at the government's discretion). Silver production had surged, driving down its market price. Under the fixed 16:1 gold-silver ratio, holders redeemed the notes for gold (Gresham's Law: "bad" money drives out "good"). This caused a steady drain on Treasury gold reserves, which fell below the psychologically critical $100 million threshold by April 1893. Fears that the U.S. might abandon the gold standard (or be forced off it) accelerated gold hoarding and exports, especially by foreign investors.
- Railroad and overexpansion vulnerabilities: Railroads had boomed after the Civil War but carried heavy debt. Falling commodity prices (e.g., wheat crash in 1893) and deflation increased real debt burdens, leading to defaults.
- Broader factors: Deflation since the Civil War era made debts harder to service. European recessions and investor pullouts (selling U.S. securities for gold) compounded the gold drain. The McKinley Tariff of 1890 raised import duties, contributing to higher prices and reduced trade. Structural issues like underconsumption and lack of a central bank (no Federal Reserve until 1913) left the system without a strong lender of last resort.
Economic and Social Impacts
- Bank and business failures: Roughly 500–600 banks failed or suspended (many in the South and West). Over 15,000 companies went bankrupt, including 156+ railroads. Industrial production dropped sharply (estimates of 15%+ decline).
- Unemployment: Peaked at 17–19% nationally (some regional estimates reached 25–43% in states like Michigan or Pennsylvania). It remained above 10% for about five years—the only other such prolonged episode was the 1930s Great Depression. Millions lost savings and homes; "Coxey's Army" (a 1894 march of unemployed on Washington) symbolized the distress.
- Social effects: Widespread homelessness, soup kitchens, wage cuts, and strikes. It fueled the Populist movement and intensified the "free silver" debate, culminating in William Jennings Bryan's famous 1896 "Cross of Gold" speech advocating bimetallism.
- Regional variation: The West and South suffered heavily due to reliance on silver mining, agriculture, and railroads. Mines closed, throwing workers out of jobs.
The panic directly strained gold-backed instruments. The Sherman Act's Treasury Notes (including the rare high-denomination "Watermelon" $1,000 notes) faced heavy redemptions for gold. For 1882 Gold Certificates, the Act of 1882 had authorized the Secretary to suspend new issuances when gold reserves fell too low; this power was exercised in April 1893, halting production and creating a multi-year gap (roughly 1891–1898) that explains the extreme rarity of certain early Friedberg sub-variants. Existing notes continued in limited use but saw increased redemption pressure. The crisis highlighted vulnerabilities in the gold standard system and accelerated the shift toward later gold certificate series once reserves stabilized.
Resolution and Long-Term Legacy
Repeal of the Sherman Act in November 1893 helped stem the immediate gold drain and restored some confidence. The 1895 Morgan-Belmont bond deal further bolstered reserves. The crisis strengthened the gold standard's defenders but radicalized silver advocates, splitting the Democratic Party and shaping the 1896 election (won by gold-standard Republican William McKinley).
Long-term, the Panic of 1893 exposed the fragility of a decentralized banking system under the gold standard, contributing to later reforms (e.g., the Aldrich-Vreeland Act of 1908 and the Federal Reserve in 1913). It marked a watershed in American economic and political history, accelerating industrialization/consolidation while highlighting tensions between farmers/debtors and Eastern financial interests.
In the context of U.S. currency collecting, the panic's monetary pressures explain the scarcity of certain 1890 Treasury Notes and early 1882 Gold Certificates—many were redeemed and destroyed, leaving few survivors, especially in high denominations. The event remains a textbook case of how policy missteps (well-intentioned silver support) can interact with market forces to trigger widespread financial contagion.
1896 The Proof Sheets of the Educational Series
2011 SOLD for $ 1.26M by Stack's Bowers
On August 17, 2011, Stack's Bowers sold for $ 1.26M from a lower estimate of $ 1M one of the most unusual sets of US bank notes : prestigious issue, full set, first copies, uncut, not circulated.
The series of Silver Certificates of 1896, known as the Educational Series, is often considered as the most artistic engraving in the history of American paper money. It was issued in three denominations, $ 1, 2 and 5, by the Treasury.
On the obverse, the $ 1 note shows History educating a youth at Washington DC. The $ 2 is devoted to Science: Electricity and Steam are two children looked favorably by the elder figures of Commerce and Manufacture. For $ 5, America dominates the World with the help of Electricity. The back is devoted to portraits of famous American people, two for each value.
The head of the Bureau of Printing and Engraving received an authorization from his administration to keep the first sheet of each of the three values, each sheet including the serial numbers 1 to 4 of these editions. He did not cut them, and had them bound along with a short explanatory typewritten text in a thin book of tall folio size, 20 x 34 cm.
After 2011, this volume has been reworked. The sheets of bank notes have been professionally removed from the book and analyzed by PMG (Paper Money Guaranty) which graded them AU55 (About uncirculated). Back to auction in one lot at Stack's Bowers, the broken set passed on August 7, 2014. It is illustrated in the release shared by CoinWeek.
The series of Silver Certificates of 1896, known as the Educational Series, is often considered as the most artistic engraving in the history of American paper money. It was issued in three denominations, $ 1, 2 and 5, by the Treasury.
On the obverse, the $ 1 note shows History educating a youth at Washington DC. The $ 2 is devoted to Science: Electricity and Steam are two children looked favorably by the elder figures of Commerce and Manufacture. For $ 5, America dominates the World with the help of Electricity. The back is devoted to portraits of famous American people, two for each value.
The head of the Bureau of Printing and Engraving received an authorization from his administration to keep the first sheet of each of the three values, each sheet including the serial numbers 1 to 4 of these editions. He did not cut them, and had them bound along with a short explanatory typewritten text in a thin book of tall folio size, 20 x 34 cm.
After 2011, this volume has been reworked. The sheets of bank notes have been professionally removed from the book and analyzed by PMG (Paper Money Guaranty) which graded them AU55 (About uncirculated). Back to auction in one lot at Stack's Bowers, the broken set passed on August 7, 2014. It is illustrated in the release shared by CoinWeek.
#OTD 8/16/2011 @ #WorldsFairOfMoney @StacksBowers gets record price for #SilverCertificates https://t.co/0c04rGKoh6 pic.twitter.com/INZ7Qkv0L9
— Gulf Coast Coin Show (@BiloxiCoinShow) August 17, 2016
