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U.S. Coins & Currency 447
National Currency – First National Bank and Trust of Lexington KY
Lisa S. asks: I have a 20.00 bill dated 1929 with a red seal it has 906 stamped on both the right and left front side and “First National Bank and Trust of Lexington KY on the front also. Can you give me some history on this bill and tell me if its worth face value or more?
The note that you have is a National Currency Note. This type of currency was issued for a period of about 50 years beginning in 1863 and ending in 1929. The original concept served two purposes. One, was to create a truly national banking system and two, to provide a ready market for United States bonds issued to finance the Civil War. It also replaced the very unreliable state bank notes in circulation at the beginning of the National Bank Note series.
The note that you have has a brown seal, is the first and last of the “small” size National Currency. The “906” is the bank’s charter number. The note comes in two types, one with black serial numbers and one with brown serial numbers.
A little of the history of this bank:Â The bank was first chartered on March 17, 1865 as was called The Lexington City National Bank. It was merged with another bank in 1913 when its name was changed to The First and City National Bank of Lexington. It became The First National Bank & Trust Company of Lexington on March 2, 1929.
According to The Standard Catalog of National Bank Notes by John Hickman and Dean Oakes, there were 25,788 type I notes issued and 5,386 type II notes issued. Both seem to bring about $35-45 in average circulated condition when offered in the paper money market. Uncirculated notes are rare!
Collectors enjoy collecting National Bank Notes and start with collecting notes from their home state. The stories about the notes are as interesting and collecting the notes themselves. If you have an interest, apply for membership in the Society of Paper Money Collectors (Bob Cochran, Secretary, P.O. box 1085, Florissant, MO 63031). They produce and exquisite bi-monthly journal about paper money, including extensive coverage of National’s for $20/yr.
Women on U.S. currency
Mark M. writes: I just read that there were 3 women on U.S. currency, Martha Washington, Pocahontas, and of course Susan B. Anthony. I know of the Susan B Anthony dollar but what currency were the other two on?
Martha Washington is on the front of the 1886 $1 Silver Certificate AND on the back of the 1896 Silver Certificate.
Pocahontas appears on the United States Note series of 1869-1878 in the vingette on the right of the front of the note, Pocahontas Presented at Court. On the left is a portrait of Daniel Webster. There is a small eagle in the center. If the note is inverted, the eagle takes on the appearance of a jackass, which became the nickname for this $10 note.
1862 “Confederate” half dollar?
Steve writes: A friend of mine has a 1862 half dollar.The markings on the front of the coin are outside edge has confederate states of america and a soldier on a horse with deo vindice on bottom. The front has shield and confederate states of america around outside and half dol on bottom. I would like to find the value of this coin. Thanks Steve
The Confederacy never struck coins for commerce. There was enough bullion stored at the New Orleans Mint to strike coins, but the CSA probably had neither the steel or the expertise to make dies. The closest they got was to mint a hand full of “half dollars” made from the existing Union Seated Liberty obverse and a reverse made from a single die made by A. H. M Patterson, a die sinker in New Orleans.
The new reverse showed the Confederate Shield under a Liberty Cap with the words CONFEDERATE STATES OF AMERICA around and Half Dol. below. The coin is dated 1861. The original pieces are quite valuable due to their small numbers and tremendous historical importance. (One of the original pieces was in the possession of Jefferson Davis, President of the Confederacy, when he was captured by Union troops attempting to escape while wearing women’s clothing).
Later in the 19th century, additional pieces were struck from the rusted but useable dies, in other metals. The piece you mention, is probably one of the many medals struck in the 1960’s to commemorate the centennial of the Civil War. The value of these medals are nominal.
How do you determine a grade on a 1910 $5.00 gold piece?
James M. writes: “How do you determine a grade on a 1910 $5.00 gold piece?” On the obverse is an indian head with all the features of the face and even the feathers in the head dress. The reverse has a standing eagle that I can see its wing feathers, and the eagle is standing on a tree(?) with striations in the bark. Also, can you tell me the approx. value of this coin? Â My research has determined a value between $350-$450. Any professional appraisal would be appreciated. Thanks, Jim
The Indian $5 and $2.50 are unique to American coinage in that in design, instead of being in relief, is actually inset into the flan or incuse. This presents a different grading challenge in that even lower grade pieces (vf or so) usually show most of the complete design. To be considered uncirculated, the indian’s cheek bone, and the decorative headband (below BE) must have no trace of wear or rub. On the reverse the eagle’s feathers on the shoulder (direct center of the coin) must be complete with no wear or rub.
If you are not sensitized to these differences you may not be able to grade the coin properly. My own experience has shown that novices often rationalize that their coins are uncirculated even with no luster or with much of the design detail missing.
It seems that your opinion is that the coin is MS60 or so based on your estimate of price. In actuality, superb uncirculated pieces (MS65 or higher) will bring many multiples of your estimate with average circulated coins bringing between $290-$325.
Coin grades – What do they mean?
Eric G. writes: Could you tell me what F, EF, VF, AU mean. I know they represent the quality of a coin, but exactly what i don’t know. Also on another site, along with those letters, they also had columns headed with the numbers 60 thru 68. what does this mean. Thank you.
The system of grading that we used today in the United States is based on a system for evaluating early Large Cents promoted by Dr. William H. Sheldon in his book Early American Cents, (Later editions were called Penny Whimsy), first published in 1949. Theoretically, a coin graded 70 was worth 70 times more than a coin graded 1. Pricing changed dramatically through the 1950s rendering Sheldon’s price relationships obsolete, however, the idea stuck and today this system is used for all United States Coins.
The grading system is divided into Mint State grades, that is coins with no trace of wear but with varying degrees of marks or other blemishes and circulated grades that describe coins with varying degrees of wear. Generally speaking, grades describe a comparison of a coin just minted and falling from the dies with one that you may be holding in your hand.
As with all subjective comparisons there may be disagreements with others on the precise grade of a specific coin. Grading services have developed to mitigate this problem with varying degrees of success. Here is a general description of the coin grades:
- MS60-70 – “MS” means “Mint State”, that is no trace of wear and having the original mint luster. “Mint Luster” is a scientific term and refers to the flow lines emanating from the center of a coin to the edge resulting from the force of striking the coin in the coin press. Mint luster is what creates the “wagon wheel” effect when you tilt a coin in a bright light. MS70 is theoretical and refers to absolute perfection.
- AU50, 55, 58 -“About Uncirculated” coins have only a light trace of wear on a high spot on the design of the coin. Most of the Mint Luster should remain.
- EF40, 45 – These grades, Extra Fine, show wear on most or all the high spots and only a small part of the mint luster remains.
- VF20, 30 – Very Fine coins show moderate wear on most design features
- F12 – Fine coins have heavy wear with some design features missing.
- VG8 – Very Good coins show heavy wear but on most coins still have design details remaining on the devices.
- G4- Good coins show only the outline of the design but the rim and the surrounding lettering are complete
- AG3 – About Good coins show wear down into the legend lettering and the rim is worn.
- Basel State 1 – A coin just with enough design detail to identify.
For more info, see:Â U.S. Coin Grading
What does it mean when a coin has a “reverse of a particular year”?
Question: Regarding Morgan dollars, what does it mean when books say the coin is a reverse of a particular year, and what are the differences between them? Thanks, great column!
When a new coin is issued there are often changes made to strengthen or correct problems in striking the coin. I’ll use Morgan Dollars as an example. In 1878, the first year of the Morgan Dollar, someone noticed that the eagle on the coin had eight tail feathers. This bit of important news was brought to the attention of the United States Congress where a debate begun on the real number of tail feathers on an American eagle. It was finally decided that an eagle only had seven tail feathers and the correction was ordered. There was also another design change, this one involving the eagle’s breast. The original 1878 had a concave breast which was replaced by a convex breast that became the standard for the rest of the series.
Because dies were so expensive to make, the original dies continued to be used or corrected. That economy gave us several varieties of the 1878 Morgans:
- 1878 8 tail feathers
- 1878 7 tail feathers
- 1878 7 tail feathers, convex breast
- 1878 7 over 8 feathers (the old design reverse was salvaged)
There is also an 1879 Morgan Dollar with the concave reverse of 1878. ‘More government economy at work’.
Which Presidents of the U.S. have their portraits on U.S. currency?
Molly B. writes:Â Hi! I was wondering if you could help me out with a school project. I’m trying to figure out which Presidents of the U.S. have had their portraits on U.S. currency. I know that there are supposedly 7 on paper and 6 on coins. Can you help me? Thanks.
I assume we’re talking about the small size currency beginning in 1928:
- $1 =George Washington
- $2= Thomas Jefferson
- $5= Abraham Lincoln
- $20=Andrew Jackson
- $50=Ulysses S. Grant
- $500=William McKinley( no longer made but legal tender)
- $1000=Grover Cleveland (no longer made but legal tender)
- $5000=James Madison (no longer made, rare, still legal tender)
- $100,000=Woodrow Wilson (1934 gold certificate)
On coins, the following Presidents are represented:
- .01=Abraham Lincoln (1909-)
- .05=Thomas Jefferson (1938-)
- .10=Franklin Roosevelt (1946-)
- .25=George Washington (1932-)
- .50=John F. Kennedy (1964-)
- 1.00=Dwight Eisenhower (1971-1978)
Why the 1953 $2 bill has a red seal
Jon D. writes:Â What does it mean if my 1953A 2 dollar bill has red writing on it and a red seal and below Jefferson it says The United States of America will pay to the bearer on demand Two Dollars. On the back it has Monticello instead of the signing of the declaration of independence. Any help would be great because I’m 16 and somewhat of a newbie in the currency collecting scene, thanks!
All currency has an “obligation” that tells what that certificate represents. At an earlier time in American History currency represented gold or silver. For example silver certificates represented the face value amount in silver coins in its obligation and gold certificates were redeemable in gold coins.
Red seal currencies are known as Legal Tender or United States Notes and have their roots in the Civil War. It was a method by which the government could raise funds without having to redeem these notes for gold or silver. It essentially was a loan to the United States Government.
At one time the “obligation” said that the notes were legal tender but you couldn’t use it to pay duty. The modern small size Legal Tender Notes only state that they are money. In 1953 we were still on a silver standard but the obligation on your note doesn’t mention precious metal only that “…..it is legal tender at its face value for all debts public and private”. The obligation was modified again in 1963 now stating only that “this note is legal tender for all debts, public and private”. Only 1, 2, 5 and 100 Dollar notes were issued as Legal Tender Notes.
Why were these notes still being issued, long after the need for them had past? Until fairly recent legislation finally ended the Legal Tender series, the last update on this law was The Act of May 3, 1878. That law decreed that the value of Legal Tender notes outstanding had to be maintained at $346,681,016. As this may be at the least silly, it does give us an opportunity to collect a few examples of this archaic paper money. Keep yours and enjoy!
For more information about Legal Tender notes, see The Story of Red Seal Notes.