An extremely rare issue is the subject of our blog series covering Whitman Publishing's 100 Greatest American Currency Notes this go around. This top 80 pick is part of a series that exists in several different design and signature combinations, but because it's the first, ended up being the rarest. Authors Q. David Bowers and David M. Sundman explain it all as we follow along with their analysis of the notes.
#78 – Act of 1861 $50 Interest Bearing Note
Under the Act of March 2, 1861, through the act of March 2, 1865, several Interest Bearing $50 notes were issued. All are considered rare, but the very first issue of the series is what Bowers and Sundman refer to as "impossibly rare." Just two are known to exist, in addition to some proof impressions (test prints).
These bills were printed from two different plates. The first implemented that the "for the" was to be inked by the Treasury staff who signed on behalf of the register and treasurer of the United States. In this case, that was Chittenden and Spinner. According to author of The Comprehensive Catalog of U.S. Paper Money, Gene Hessler, 7,724 of those were printed. The second variety had the "for" engraved on the plate. Over 73,000 of those were recorded as being issued. However, authors Bowers and Sundman note that those figures are minimums as records are not complete, thus creating the probability that more were issued.
$50 Interesting Bearing notes were authorized with an interest rate of 6% annually for two years. This is said to have echoed that the credit of the Union at the time was higher than the Confederacy, who paid 8% on its notes. Most of the notes at the end of the period were redeemed, and the holders were mostly banks. The notes were not circulated.
The face of the notes featured the goddess Justice at the center while the portraits of Andrew Jackson and Salmon P. Chase (Treasury secretary 1861-1864) were on either side. They were printed by the National Bank Note Co.
In 1960, these notes in a Very Fine condition were valued at $2,500. By this publication (2006), it rose to $400,000.
