(Littleton, NH) -- A
previously unknown example of rare Civil War era paper money has come to
light in Littleton, New Hampshire. The colorful $20 denomination gold
certificate, issued in 1866 as part of a federal program to pay for the
war and its aftermath, is valued today at more than $250,000.©
CoinFacts.com
"The note was in
the possession of a Connecticut River Valley family for four
generations, handed down by a great-grandfather who was a New York City
banker. It was meticulously kept in a cardboard folder because the
family thought it might be valuable, but it took them repeated attempts
to learn how important it really is," said David M. Sundman,
President of Littleton Coin Company of Littleton, New Hampshire and a
collector of early U.S. paper money.
The owners, who want to
remain anonymous, told Sundman they could not locate any information
about the historic note on the Internet. Two different New England coin
dealers offered them only $2,000 or less for their collection that
included the rare note and 64 other pieces of old, 19th century paper
money. Fortunately, they sought a third opinion and contacted Sundman.©
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"I was about five
feet away when I first saw it, but I immediately exclaimed, 'That's a
rare note!,'" recalled Sundman.
"I subsequently
told them it could bring a quarter of a million dollars at an auction,
maybe more. This is only the sixth known specimen of this note.
You never know when things like this may turn up! It's like a treasure
hunt, but this time the gold was made of paper," he said.©
CoinFacts.com
In March 1863, Congress
authorized the issuance of gold certificate bank notes in denominations
of $20 to $10,000 to help finance the Civil War. They were issued
between 1865 and 1878, and redeemable in gold. Today, all
these early gold certificate notes are considered extremely rare.
Nine of the $20 notes
are listed as unredeemed (never turned in), but this is only the sixth
known specimen to survive. One of them is in the Smithsonian Institution
in Washington, DC.
Sundman and the
Littleton Coin Co. staff are helping the family place their historic
note in a public auction to be conducted next year at a major convention
of paper money collectors.
A similar 1860s era $20
denomination gold certificate note was purchased for $528,000 at a
public auction earlier this year conducted by Lyn Knight Currency
Auctions of Overland Park, Kansas. At the time, only five of the
notes were known to exist, with two of them in museums or government
possession.
Knight estimated the
New Hampshire discovery note will sell for at least $250,000 when it is
offered in an auction in March, according to Sundman.©
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"After first being
offered less than $2,000 for it, we were thrilled to learn the bill's
real value. Obviously, if you don't know your currency, you better
know your coins and currency dealer. It pays to be cautious and to
follow your cautionary instincts," the anonymous owner of the note
stated.©
CoinFacts.com
The rare bill is 50
percent larger in size and more colorful than today's paper money. The
primarily green front depicts an eagle, and the serial numbers are red.
The back is printed in orange and gold colored inks with an illustration
of a $20 gold coin of the era.
"The eagle is
perched on a Union shield, symbolizing the Civil War fight for the
preservation of the Union. This was designed during the height of the
war when it was not certain if the Union would prevail," explained
Sundman.©
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The New Hampshire
discovery note is hand-dated January 8, 1866 and bears an authorization
signature handwritten by Henry H. VanDyck, an Assistant Secretary of the
U.S. Treasury.©
CoinFacts.com
For additional
information about the note or Littleton Coin Co., write to 1309 Mt.
Eustis Rd., Littleton, NH 03561; or call (800) 645-3122.©
CoinFacts.com
