Heritage Currency Auction Sets New Record!

Dallas, Texas: Heritage Currency Auctions of America (HCAA) held their latest auction on February 18 & 19, 2005, in their Dallas headquarters. 1,103 bidders competed for 2,024 lots, 260 of them successfully. The sale realized $12,001,401.30 for 2,024 lots sold (100% of the total).

"This was an extremely strong sale," said Allen Mincho, Director of HCAA. "The auction almost doubled the total from any previous currency sale - the standing record was $6.7 million, set by HCAA just one month ago at the Florida United Numismatists convention. I'd attribute this exceptional outcome to the number of new collectors that Heritage has brought into the field over the last several years and who are now in the process of eagerly building their collections. Of course, the capacity crowd in our brand-new auction room and the almost overwhelming participation of our phone bidders was a big help as well!"

"This auction also saw a new record set for small size US currency," continued Mincho, "with a 1928 Federal Reserve note with a face value of $10,000 selling for $241,500. Coincidentally, when we offered this same piece just a few years ago, it sold for the then-record price of $121,000. The new results show just how robust this market has become in just a few short years."

"Overall," added Mincho, "I'd say that the most interesting aspect to this auction was the fact that 'big notes' - those in the six-figure range and over - are back with a vengeance, with a tide of new money coming into the paper money marketplace. This will be an interesting trend to watch in the future."

Additional highlights of the February, 2005 auction include:

Fr. 202a $50 1861 Interest Bearing Note Very Fine. We had the honor of selling this note once before in May of 2001 which was the first time any signed and issued example of this type was ever sold at public auction. At that time, we described the note as follows. "For the serious collector of U.S. Currency, the thought of getting to own this unique note someday should equal the thrill of being able to experience all of one's childhood Christmas mornings at once. This cataloger, jaded by great notes, to say the least, will never forget the moment he laid eyes on this piece or held it in his hands for the first time. This issue, unlike many of the Interest Bearing or Compound Interest Treasury Notes, represented real currency which was intended to circulate as money and did indeed fulfill that purpose. As researcher Ron Horstman titled his monograph about these notes in the May-June 1988 issue of Paper Money magazine, this issue represented 'The First Greenbacks of the Civil War,' and was a direct precursor of the lower denomination Demand Notes which followed this issue by only a few months. By early 1861, the government of the United States was virtually insolvent, with the national debt having soared from $29 million in 1857 to over $64 million by the time the enfeebled and dispirited Buchanan administration departed Washington in 1861. On March 2, 1861, just two days before President-elect Lincoln was to take the inaugural oath, and with the threat of civil war looming, the Congress, faced with the prospect of the nation's financial ruin, overwhelmingly passed an act calling for the issuance of bonds, or, if such bonds could not be sold at full par value because of a lack of market support, the issuance of Interest Bearing Notes in place of these bonds. The treasury notes were to be issued in denominations 'of not less than $50 and bear interest at the rate of 6 percent per annum.' As former Comptroller of the Currency John Jay Knox later observed in his book 'United States Notes-A History,' published in 1885, the choice Congress allowed the incoming administration was most fortuitous, as the market for U.S. government securities collapsed after the commencement of hostilities with the attack on Fort Sumter on April 12, 1861. Notes were quickly printed under the Act of March 2nd, and, conforming to that legislation's requirement, only in denominations of $50, $100, $500, and $1000. As the Horstman article explains: 'These notes were, however, a general obligation of the United States government, and since they were payable to the bearer, they circulated in commercial transactions. A description of the $50, $100, $500, $1000 two year notes is found in 'Hodges American Bank Note Safe-Guard,' along with other federal and state chartered bank issues of the day.'' To fulfill the public's need for smaller denomination circulating notes, Congress passed enabling legislation on July 17, 1861. These Demand Notes were issued immediately following their plate date of August 10, 1861. Interestingly, this $50 example bears the hand-written issue date of August 9, 1861, literally on the eve of the Demand Note issue date. The note we offer here is a clean, bright Very Fine, with strong printing, excellent colors, and no visible defects. There are minor, consummately expert restorations at the upper corners that affect no design elements but for the frame line and the center fold, which likely had been partially split at one time. This note is the only existing redeemable example not only of its denomination, but of its entire issue, as no $100, $500, or $1000 exists in or out of government hands. Three examples of this design type exist: the currently offered redeemable legal tender piece, which has changed hands only once since 1970 and has resided in a private collection since 1983; a redeemed and punch cancelled piece held by the Bureau of the Public Debt in Washington, DC; and an unsigned, unissued punch cancelled Specimen sold at auction 20 years ago. Just as with the Demand Notes, the words 'For the' were initially handwritten in front of the printed 'Register' and Treasurer' and then signed by clerks. After a short while, the words 'For the' were added to the plate to save time, creating a second variety. This note, which is of the first variety, has the words 'For the' handwritten at the left and signature of clerk G. Luff. On the right, however, Treasurer F.E. Spinner has affixed his own distinctive hand signature, and the words 'For the' therefore do not appear. This note represents the only instance in the field of U.S. Currency where a single example exists in collectors' hands of an entire design type. The note is totally different in appearance from any other issue ever printed. The face is printed in black with the borders and overprint in bright orange, and the back, unlike any other U.S. Currency issue, is printed in blue. Both sides were executed for the government by the National Bank Note Co. Interest Bearing Notes as a category are the rarest type of currency issued by the United States. The Friedberg catalog comments: 'Interest Bearing Notes are the rarest of all issues of American currency. Even advanced collectors, after many years of ardent search, will not have had the pleasure of seeing one of these notes. Such rarity is only natural for these notes...when one considers the perilous state of the nation in those years, the scarcity of money, and the general fear, it was a rare person indeed, one either supremely confident or sublimely ignorant, who did not turn in his interest bearing money the moment the interest became payable.' When Robert Friedberg wrote those words in 1953, it was indeed true that most collectors never had the opportunity to own an Interest Bearing Note. Now, 48 years later, quite a number of new pieces have come to light, and now just under 120 examples of Interest Bearing Notes are known for all denominations, types, and issues including notes in collectors' hands, museums, and government institutions. Many advanced collectors now have the opportunity to own an Interest Bearing Note, but only a single collector can own a note of this design type. Only one person can own an example of redeemable circulating U.S. paper money from he Civil War period that predates the 1861 Demand Notes. Again, only a single individual can own any note of any denomination from the March 2, 1861 issue. That collector will be the individual who steps up tonight and purchases this unique example." In that sale, this piece realized $605,000. A figure which will be unreachable on today's market, but for this incredible note, we feel the $250,000 mark should be easily surpassed. REALIZED: $368,000.

Fr. 204 $100 1863 Interest Bearing Note Choice Very Fine. Tonight represents the first appearance ever of a Fr. 204 at public auction. Only two examples are known to exist: this piece, which is both the Friedberg and Hessler illustrations but with no previous market appearances, and a second piece graded Fine which was passed from the Treasury Department to the Smithsonian Institution in 1978. This is a simply beautiful note, with broad margins, ideal colors, and no defects of any kind. It utilizes three strikingly attractive vignettes, none of which appear anywhere else on US currency. Only when incredible collections like this Taylor Family Collection come to the market do collectors have the opportunity to acquire rarities of this magnitude. This is one of our favorite pieces in this collection and a note that should see vigorous competition before the hammer falls this evening. REALIZED: $299,000.

Fr. 209 $500 1861 Interest Bearing Note Choice Very Fine. Only two examples of this 1861 $500 Interest Bearing Note, remain in existence. The Serial Number 1 note, which is both damaged and cancelled and is being permanently held by the Bureau of Public Debt in Washington, and this note which is the only other existing example and is the Friedberg illustration piece. This note has never been auctioned before and was last seen publicly in a December 1996 Bill Youngerman Coin World Ad, where it was offered at $150,000. This piece has incredible color for the grade, and is problem free save for a dozen pinholes near the left end. It is beautifully margined, and has a very handsome overall appearance. The face bears a light purple Treasury Department stamp, and the back has a slightly heavier one along with the hand-written notation "pay the secretary of the Treasury for redemption" and signed Geo. Maters(?). This will likely represent the only opportunity for any collector to ever acquire a Fr. 209. REALIZED: $299,000.

Fr. 283 $10 1878 Silver Certificate Fine. Fr. 283 is the first of the $10 Silver Certificates and this is the only known example in existence--in or out of government hands. This is one of a number of notes in this incredible collection that is not owned by the Smithsonian or any of the Federal Reserve Bank museums, where so many important notes are held forever and away from the collecting fraternity. This piece is totally natural with incredible color for the grade as well as large even margins all the way around. The hand signature of W. G. White is accomplished in deep brown ink and is bold as the day it was applied. The note is flawless for the grade save for a few miniscule pinholes. In our FUN sale last month, we sold a Fr. 284, which was one of three known examples, for $89,125. This note, while lower in grade, is three times rarer and available forever to only a single collector. Unlike most other unique Federal currency notes, this piece is a lower denomination and belongs to a heavily collected series. We would not be at all surprised to see this incredible rarity reach or exceed $150,000-up. REALIZED: $253,000.

Fr. 1179 $20 1905 Gold Certificate Gem New. From our May 18, 2001 sale where it was lot 1373. At that sale, the note was described "A strictly original, deeply embossed, beautifully margined Serial Number 1 Technicolor. This piece traces its history to the March 1945 sale of the Grinnell Collection. Even without the all-important serial number 1, this would be a very special note, as the brilliant colors that give this note its Technicolor nickname are all as bright as we've ever seen them on any example. Add to that exceptional centering, perfect paper surfaces and deep embossing, and the importance of this piece cannot be overlooked. In January of 2000, we sold a Serial Number 1 Fr. 298 Tombstone for $110,000, and in our opinion, that note pales in comparison to the significance of this incredible piece. In the Grinnell sale, where few notes were described with more than a cursory comment, this note was given the following glowing description: "$20.00 -1905, Portrait, Washington, Red seal (scallops). Sigs. Lyons and Roberts, Obv. Plate 6, Rev. 3, with the extremely rare serial 1, Rare combination indeed, for the note in the early part of this sale, among the signature series, is not an absolutely crisp, uncirculated specimen as is this sparkling gem. This is one of the most attractive notes ever issued by our government. The beautiful lathe work comprising the frame design surrounds the rich yellow field in the center of which appears the dignified portrait of Washington. Above center is '20' in yellow and below the portrait, the words 'In Gold Coin' also printed in rich yellow. The color contrast effects present a picture comparable to a magnificent painting and must be seen to be fully appreciated. This colorful beauty is an absolutely perfect, Crisp, Unc." We're every bit as impressed with this piece today as its cataloger of 56 years ago was. Only two possible Serial Number 1's could exist for this Technicolor type: this piece, and another for Fr. 1180. It appears likely that the Fr. 1180 Serial Number 1 does not exist, as its only mention ever was a pencil notation of Bill Donlon's, claiming he owned it. Donlon owned this Number 1 Fr. 1179 at the time he made that notation, and he almost certainly was referring to this note, as no other record of the existence of the Fr. 1180 #1 is known." In that sale, the note had been estimated at $125,000 and realized $176,000. Today's market for #1 notes is a bit lower, but we would still be surprised if this note did not reach six figures. REALIZED: $241,500.

Images, descriptions, and prices realized from all of Heritage's previous sales are available in the Permanent Auction Archives at the Heritage website.

To purchase a catalog for any Heritage Auction, please contact Nichole Jewell, 800-872-6467, Ext. 272, 3500 Maple Avenue, 17th Floor, Dallas, TX., 75219.