Coin and Paper Money Collecting/Interest bearing note

Advertisement

Expert: - 12/12/2009


Question

1821 note
I have a five dollar interest bearing note from "The City of Omaha".  It's in great shape.  Maybe it's a reproduction but I don't think so.  The signatures and dates are written in ink.  This is what it says  "the city of Omaha will pay FIVE DOLLARS to bearer one year after date with interest at 10 percent per annum.  Omaha City Sept 1 1821"  Is there a way to tell if it is real?  Is it worth anything?  Thanks

Answer

Obsolete Currency
Hi Vance:

I'm not real strong on early US Notes like yours, but I did find one EXACTLY like yours on eBay in better condition with a starting bid of $150. It is classified as Obsolete Currency and considered to be a Broken Bank Note. It actually is an 1857, not 1821. See link: http://cgi.ebay.com/1857-5-The-City-of-Omaha-NEBRASKA-note-COLORFUL_W0QQitemZ110...

Obsolete Currency refers to paper money that was issued by entities other than the Federal Government, and generally in the period of 1782 - 1866. It includes notes that were issued by state banks, state and local governments, merchants and railroads. Due to the high cost of having currency printed, most Obsolete Currency was only printed on one side. During the Civil War there was a severe paper shortage.

The bank issued currency makes up the largest portion of the field of Obsolete Currency. These are often referred to "Broken Bank Notes". This is a term that goes back to the days when bank failures were common. The banks were considered "Broken", and their currency was considered "Broken Bank Notes". The term Obsolete Currency is more fitting, as many of the banks did not go broke. As a matter of fact, James Haxby notes in his book "Standard Catalog of United States Obsolete Bank Notes 1782 - 1886" that many of the early national banks or their successors exist today, and some still redeem the old issues of their predecessors!  

You may find out more information about your note at: http://brokenbanknotes.com/

Condition, of course is important in determining the final value of your note. Your note needs to be authenticated. If you should decide to sell your bill to a dealer, remember they will offer about 50% to 60% of the retail value. You should always get two or more estimates, and try and deal with PNG (Professional Numismatists Guild) dealers when possible. I'll list the link for you to check dealers near you.

To find a PNG dealer, see Link: http://www.pngdealers.com/dealersearch.php

Explanation of U.S. Currency Grades:

Rag - A note that in addition to being well worn may also have a considerable amount of damage such as tears, frayed edges, and possibly missing pieces from the note.

Good - A note that just falls short of being graded Very Good.

Very Good - A note that will be fairly well-soiled, may be significantly worn; might have roughness around the edges with only minute problems.

Fine - Well-circulated with little crispness remaining; edges may be rough.

Very Fine - Some circulation; may show several folds and will have lost some of its crispness and color.

Extremely Fine - Circulated; may have some folds; still have crispness.

AU - (Almost Uncirculated) - Notes in this condition will be much the same as a "new" Note except for a fold or two in the note and possibly one or more corner folds.

CU 60 (Crisp Uncirculated) - No trace of circulation. Can have centering problems, pin holes, counting smudges, wrinkles, close margins, or a corner tip fold that is not into the design.

CH CU 63 (Choice Crisp Uncirculated-63) - A nice new Note but not quite Gem. Centering may be a little off. May show some aging or light counting smudges or wrinkles.

VCH CU 64 (Very Choice Crisp Uncirculated-64) - A bright Note that's slightly below Gem quality. Margins and color are above average. A Note that may have slight centering problems.

GEM CU 65 (Gem Crisp Uncirculated-65) - An almost perfect Note. Better than average margins. No aging or fading.

SUP CU 67 (Superb Crisp Uncirculated-67) - A nearly flawless Note with perfect centering. Full wide margins all around. Colors are totally bright, crisp and vibrant. The quality of a note in this condition is outstanding.

You may want to check eBay listings in the US currency category from time to time to se if notes similar to yours are offered for sale.

Please remember to go to the experts site to rate this answer. And check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck in your collecting.
    Questioner's Rating
    Rating(1-10)Knowledgeability = 10Clarity of Response = 10Politeness = 10
    CommentThanks so much... Just what I needed to know!


  • Add to this Answer
  • Ask a Question

Ronald Fern

Expertise

I can answer most all questions relating to US coins, tokens, and currency. I'm not strong on world coins or ancients. Primary field of expertise is errors and varieties. Over 55 years experience in coin collecting. Part time dealer since 1976. Employed by McDonnell Douglas/Boeing for over 34 years as an Industrial Engineer/Technical Specialist before retiring in 2002.

Experience

Worked weekends for "Lonesome" John in the late 1960's to mid 1970's processing error coins, packaging, and preparing orders. Worked with John Devine and Fred Weinberg on several California Error A Rama's in the early 1970's. Served as display judge at annual Error-A-Rama coin shows. Opened and operated mail order coin business DBA "CAL ERRORS" in 1976. Contributer to Alan Herbert's "Official Price Guide To Mint Errors" and Fivaz/Stanton "Cherrypickers' Guide". Worked Saturdays at Huntington Beach Coin Exchange 1980-1999. Had table and sold coins at a number of coin and gun shows in So CA, AZ and NV. Sell coins, tokens and currency currently at my space in the Pomona Antique Center. Past "Errorscope" Editor. Presently CONECA Examiner.

Organizations
ANA, CONECA, CWTS, NLG

Publications
Errorscope, Numismatic News, Civil War Token Journal, Error and Variety News

Education/Credentials
AA Degree LBCC pre Engineering, 1964 BS Degree CSULB Ind Technology, 1968

Awards and Honors
1st Place EAR Trophy for Civil War Token Errors, NLG Author of Year Award for best monthly coin column "Error News and Views" in small Numismatic paper, owned and published by Ray Anthony.

©2012 About.com, a part of The New York Times Company. All rights reserved.