Money is weird. We use it every day, swipe plastic cards, and tap our phones, but we rarely stop to look at the paper in our wallets until something looks... off. That is basically what happened with the American Series 2 currency. If you happened to find a bill from this specific 19th-century era tucked into an old book or inherited a collection from a relative, you aren't just looking at "old money." You are looking at a messy, experimental, and frankly fascinating period of United States financial history where the government was desperately trying to figure out how to make paper actually worth something.
It wasn't easy.
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Back in the 1860s, the U.S. was essentially a start-up when it came to nationalized paper currency. Before the "greenback" became a global powerhouse, we had a chaotic system of private bank notes. The American Series 2 Treasury Notes, specifically the Series of 1863, represent the second major iteration of federally issued legal tender. They weren't just pretty pictures of founding fathers. They were a survival mechanism for a nation torn apart by the Civil War.
The Chaos Behind the American Series 2 Notes
Imagine a world where your local bank just prints its own money. That was the reality before the federal government stepped in. When the 1862 and 1863 series hit the streets, people were skeptical. Why would a piece of paper be worth a dollar? The American Series 2 notes, often referred to by collectors as the "Series of 1863" Legal Tender Notes, were the government's way of saying, "Trust us, this is real."
These bills were a direct response to the massive debt accrued during the war. The Union needed to pay soldiers. It needed to buy gunpowder. It needed to keep the lights on. So, they printed "United States Notes." They were different from the "Demand Notes" of 1861 because they weren't immediately redeemable for gold at any bank window. They were legal tender for all debts, public and private, except for interest on the public debt and duties on imports.
It was a gamble.
If the Union lost, that paper was literally fire-starter. Because of that risk, the value of these notes fluctuated wildly compared to gold. In 1864, a "greenback" dollar might only be worth 40 cents in gold. Think about that for a second. Your paycheck could lose half its value just because of a bad report from the front lines.
How to Spot the Real Deal
Collectors get really obsessive about the American Series 2 because of the specific design choices made by the Bureau of Engraving and Printing (BEP) and the American Bank Note Company. These weren't printed on the high-tech polymer we see today. They were printed on heavy, high-quality linen paper that felt distinct.
One of the most famous examples from this era is the $2 Legal Tender Note.
You’ve got Alexander Hamilton on the front. No, he wasn't always on the $10. In the American Series 2 era, he was the face of the deuce. The engraving is incredibly intricate because it had to be; counterfeiting was rampant. If an artist couldn't replicate the fine, swirling "lathe work" on the borders, the bill was a fake.
Why the Red Seal Matters
If you look at a Series 1863 bill, the first thing that hits you is the color. We call them greenbacks, but the most striking feature is often the vibrant red seal and serial numbers. The "Series 2" era experimented with different seal sizes and positions. You might find a "Small Red Seal" or a "Chas. Spinning" signature. These tiny variations are what turn a $50 bill into a $5,000 auction item.
Honestly, the variation is staggering.
Some notes had "Series 1" printed on them, while others in the same production cycle were technically part of the second obligation. It gets confusing. Experts like those at the American Numismatic Association spend decades categorizing these because the Treasury Department wasn't exactly keeping the world's cleanest records in the middle of a war.
The $10 "Jackass" Note and Other Oddities
You can't talk about this era without mentioning the quirks. The $10 Legal Tender Note from the American Series 2 period (specifically the 1869 update, which followed the 1863 series) earned the nickname the "Jackass Note."
Why?
Because if you flip the bill upside down, the eagle on the bottom looks exactly like a donkey’s head. Some people thought it was a secret political statement by a disgruntled engraver. Others think it’s just a funny coincidence. Regardless, it’s a prime example of why people still hunt for these bills. They have personality. They have mistakes. They have history you can actually hold.
Market Value: What Is It Actually Worth?
Let’s talk turkey. Most people finding an old bill in an attic aren't sitting on a million dollars. Condition is everything. In the world of paper money, we use a grading scale from 1 to 70.
A American Series 2 $1 note from 1863 in "Good" condition (meaning it’s been folded, it's dirty, and the corners are rounded) might only fetch $100 to $200. But if you find one that is "Choice Uncirculated"—meaning it looks like it was printed yesterday—you’re looking at several thousand dollars.
Specific rarities to watch for:
- Low Serial Numbers: Anything under 100 is a goldmine.
- Star Notes: Though more common in modern times, early replacement notes are incredibly rare.
- Signatures: Certain combinations of the Register of the Treasury and the Treasurer are rarer than others. For example, the Chittenden-Spinner combo is classic, but specific experimental prints are the "holy grail."
The End of an Era
The American Series 2 notes eventually gave way to the Series of 1869, often called the "Rainbow Series" because of the blue tint and multi-colored fibers used to stop counterfeiters. By the time the 1870s rolled around, the U.S. was moving toward the "Specie Payment Resumption Act." Basically, the government finally promised to trade your paper for actual gold again.
This stabilized the dollar. The "Greenback" stopped being a wartime experiment and became the foundation of the American economy.
When you look at a bill from the American Series 2, you aren't just looking at currency. You’re looking at a piece of the bridge that took the United States from a collection of fragmented banks to a unified financial superpower. It was messy, it was risky, and it was beautiful.
Actionable Steps for Collectors and Curious Finders
If you think you’ve stumbled upon a note from this era, don’t just put it on eBay. You’ll probably get ripped off. Follow these steps to ensure you know what you have.
1. Don’t Clean It.
This is the biggest mistake people make. Never use water, bleach, or an iron to "crisp up" an old bill. You will destroy the fibers and tank the value. Collectors want "original" paper. Even a stain is better than a chemical wash.
2. Protect It Immediately.
Buy a PVC-free plastic sleeve. Regular sandwich bags can actually leach chemicals into the paper over time. You want "archival quality" holders.
3. Check the "Friedberg Number."
The Friedberg system is the bible of paper money. Every variant of the American Series 2 has a number (like F-16 or F-18). Identifying the exact number is the only way to get a real price estimate. Use a site like PMG Notes to look up your specific bill.
4. Get a Professional Opinion.
If the bill looks high-grade, send it to a third-party grading service like PMG or PCGS Banknote. Having a bill "slabbed" (encased in plastic with a certified grade) can double or triple its resale value because it guarantees authenticity to the buyer.
5. Study the Signatures.
Look at the bottom left and bottom right. Those hand-signed (or later, plate-signed) names aren't just decorative. They tell you exactly when the bill was issued. A signature change often marks the boundary between a common note and a museum piece.
The history of American money is a history of trial and error. The American Series 2 was one of the most successful "errors" we ever had, proving that a government's word could be just as valuable as a bar of gold, provided people were willing to believe in it. Whether you are a hardcore numismatist or just someone who found a weird bill in a drawer, these notes represent the moment the American dollar truly found its feet.