Lot 41
Virginia. Mar. 1, 1781, $1000 Colonial currency. A really impressive high denomination example from Virginia with crisp signatures, bold design, and unsullied appearance. The paper money monster of inflation in those days blew up with a loud report in 1780-81 when prices went to the moon. The public finally rejected paper money and switched back to demanding "specie" payments of gold and silver. PCGS graded VF-35.
During the Revolutionary War each state provided troops to the Continental Army. These troops were often paid with IOU's or paper currency like the $1000 Virginia bill offered here. As more equipment and men were needed the Continental Congress and the various states printed more paper money to pay the bills. This flood of paper currency entered circulation causing the value of the currency to quickly depreciat. Concurrently as goods became more difficult to find, prices went up. During the latter stages, around 1780-81, a soldier's pay was depreciating in value daily. By the time Continental soldiers came back home from a long campaign the money in which they had been paid was just about worthless. Today, this $1000 note is worth more (to a collector) than it had in buying power in 1781!
Estimated Value $300 - 400.
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| Realized $357 |
