Unique 1865 $500 Interest Bearing Note

09 Aug 2018  Thu

Out of 175,682 $500 Interest Bearing Notes that were issued on 15th June 1865, only one exists today, which is a part of the Joel R. Anderson collection. This unique design type features a portrait of Alexander Hamilton, a big mortar in an oval frame, a portrait of George Washington, big green Roman numeral Ds, a green security panel, printed signatures of Colby and Spinner, red spiked Treasury Seal, and blue-printed serial numbers. They carried an interest rate of ten cents per day or 7.3% per year and were payable on a half-yearly basis.

The note originally carried the serial number 78116. The last digit and Name of the payee were removed to redeem the note again. Treasury Department later added the correct serial number in handwritten ink. It was punch cancelled several times. An inked inscription on the reverse reads “Writing has evidently been removed from the payee mark on this note SMC June 26/68”. One coupon with an altered serial number is still attached. A part of the bottom left margin is absent and many small pinholes are visible when it’s candled. It has restored splits on the back of the holder and restorations are executed well.

The same note was sold in February 2005 for $115,000 and this time it is offered with an estimated value of $200,000 – $300,000 in Part II of Joel R. Anderson Sale by Stacks and Bowers.

Image Courtesy: Stacks and Bowers