1840's $1 Illinois & Michigan Canal Lockport, IL Canceled Stained Scrip PMG AU50

Paper Money Guarantee

PMG, or Paper Money Guarantee, is a leading third-party grading service that evaluates and certifies the authenticity and condition of paper currency. Established in 2005, PMG is trusted by collectors and dealers worldwide for its unbiased assessments. Once graded, a note is encapsulated in a tamper-evident holder with a certification label that includes details such as the note's origin, denomination, and grade. This process helps preserve the note, verify its authenticity, and protect its market value.

A grade of AU50, or About Uncirculated 50, indicates a note that is nearly uncirculated but has very light signs of handling. This could include minor corner folds, faint bends, or slight evidence of circulation that prevents it from reaching a full "Uncirculated" (UNC) grade.

1840's $1 Lockport, IL Canceled Stained Note PMG AU50

The 1840's $1 Illinois & Michigan Canal Fund scrip, graded PMG AU50 and noted as canceled and stained, is a historically significant piece of obsolete U.S. currency. Issued during the construction of the Illinois & Michigan Canal—a critical infrastructure project linking the Great Lakes to the Mississippi River—these notes were used to finance the canal's development during a period of economic hardship following the Panic of 1837.

Faced with financial constraints, the canal commissioners issued scrip as a form of promissory note to pay workers and contractors. While these notes were accepted at face value for purchasing land along the canal, their market value depreciated significantly over time, dropping to as low as 15 cents on the dollar by 1842.