Lot 105
1862, $1 United States Note. Fr-17a. Blue crayon pencil writing on the back, but acceptable for this grade and period. PCGS graded Apparent Fine 12.
Lincoln issued his "greenbacks" in 1862 and paid for the war with them. They were supposed to be of equal value with gold redeemable currency but as you might imagine two prices for everything developed. One price was in greenbacks and the other in gold. Under the legal tender laws the two-tier price system was declared illegal, however, not recognizing the differences in the two moneys quickly led to bankruptcy. The exchange rate of the greenbacks with regular gold redeemable money changed as the fortunes of war changed with each battle. When the North's chances of winning the war fell, so to did the exchange rate of its greenbacks. When the fortunes of war improved for the North so did the fortunes of its greenbacks.
On February 25th, 1862 the northern government printed $150,000,000 of these new "greenbacks". On July 11th 1862 a second issue of $150,000,000 greenbacks was issued. Again on March 3, 1863 a third batch of $150,000,000 was quickly authorized and printed up. At the low point for the greenback in 1864 it's value dropped to only about 1/3 of its face value. Over the course of the war the North issued $450 million in greenbacks.
Estimated Value $150 - 200.
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| Realized $336 |
