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The 1862 $5 Legal Tender Note, cataloged as Friedberg #61a, is one of the earliest examples of federally issued paper currency in the United States. Issued during the Civil War, this note was part of the first series of Legal Tender Notes authorized by Congress under the Legal Tender Act of 1862. The introduction of these notes marked a significant shift in American finance, as the U.S. government sought to create a stable currency to fund the war effort and facilitate economic transactions. Before this point, paper money in the U.S. was primarily issued by private banks, leading to inconsistencies in value and widespread distrust. The issuance of Legal Tender Notes helped to unify the nation’s monetary system and laid the foundation for the modern U.S. dollar.
The Legal Tender Act of 1862 was a landmark piece of legislation that authorized the issuance of paper money not backed by gold or silver but by the credit of the U.S. government. This was a necessary measure to address the financial strain of the Civil War, as the federal government needed a means to pay soldiers, purchase supplies, and stabilize the economy. Unlike previous Demand Notes, which were redeemable in gold or silver, Legal Tender Notes were not immediately convertible to specie. Despite initial skepticism, these notes gained widespread acceptance, eventually becoming a trusted medium of exchange across the country.
The obverse design of the 1862 $5 Legal Tender Note is a remarkable example of early American banknote engraving. At the center of the note is a detailed portrait of Alexander Hamilton, one of the Founding Fathers and the first Secretary of the Treasury. Hamilton’s portrait, based on a Gilbert Stuart painting, symbolizes financial stability and the federal government's commitment to economic strength. His presence on the note underscores his role in shaping the U.S. financial system and advocating for a national currency.
To the right of Hamilton’s portrait, the denomination is prominently displayed in an ornate circular design with the large numeral “5.” Surrounding this feature is intricate scrollwork and decorative patterns that enhance the note’s aesthetic appeal. Above the portrait, the text reads "THE UNITED STATES," reinforcing the official status of the currency. Below, the statement “FIVE DOLLARS” appears in bold lettering, ensuring easy denomination recognition. Additional inscriptions confirm the note’s legal tender status, stating, “This note is a Legal Tender for Five Dollars” and “Act of February 25, 1862,” referencing the legislation that authorized its issuance.
The Treasury seal, printed in red ink, is located on the right side of the note, serving as a key security feature. Early Legal Tender Notes from this era featured different types of Treasury seals, with the red seal being a defining characteristic of this particular variety. The serial numbers, also printed in red ink, are positioned on either side of the note, further adding to its authenticity and security. The intricate border design and fine engraving work reflect the craftsmanship of the Bureau of Engraving and Printing, which was responsible for producing these early federal banknotes.
The reverse of the 1862 $5 Legal Tender Note is printed in green ink, earning it the nickname “greenback.” The use of green ink was an anti-counterfeiting measure, helping to differentiate genuine government-issued notes from private banknotes that lacked uniformity. The reverse design features an elaborate pattern of geometric shapes, scrollwork, and the bold inscription “UNITED STATES OF AMERICA” across the center. The denomination “FIVE DOLLARS” is also prominently displayed, ensuring instant recognition of the note’s value. The symmetry and intricate detailing of the reverse design exemplify the high-quality engraving techniques used in early U.S. currency production.
The 1862 $5 Legal Tender Note was printed at a time when the Bureau of Engraving and Printing was still in its formative years. Prior to the establishment of the BEP as the sole producer of U.S. currency, private firms were contracted to print banknotes for the federal government. As a result, early Legal Tender Notes exhibit slight variations in printing quality and design details, depending on the printing firm responsible for their production. Despite these variations, all notes adhered to strict government standards to ensure consistency and reliability in circulation.
The mintage of the 1862 $5 Legal Tender Note is difficult to determine precisely, as records from the Civil War era are incomplete. However, millions of these notes were issued to meet the financial demands of the war. Over time, many were redeemed, damaged, or destroyed, reducing the number of surviving examples. Today, well-preserved specimens are considered rare, particularly those in higher grades with minimal wear. The survival rate of early Legal Tender Notes is relatively low, making them highly desirable among collectors of U.S. paper money.
The condition of this particular 1862 $5 Legal Tender Note, graded VF30PPQ (Very Fine 30 Premium Paper Quality) by Legacy, indicates a well-preserved example with moderate circulation wear. A VF30 grade signifies that the note has been used in commerce but remains structurally sound with strong eye appeal. The PPQ (Premium Paper Quality) designation further enhances its desirability, as it confirms that the note has not been altered, pressed, or restored, preserving its original integrity.
In a VF30PPQ example, the ink remains vibrant, with the black engraving on the obverse still sharp and well-defined. The intricate details of Hamilton’s portrait, the decorative scrollwork, and the Treasury seal are clearly visible, with only minor signs of wear. The red serial numbers and Treasury seal remain bold, adding to the note’s striking visual contrast. On the reverse, the green ink retains much of its depth, with no significant fading or discoloration.
The note’s paper remains firm and well-structured, with no major tears, holes, or excessive wear. While minor handling marks and folds may be present, they do not detract significantly from the overall presentation. The edges are relatively intact, and the centering of the design is well-balanced within the margins. Collectors value VF30PPQ notes for their combination of historical significance, aesthetic appeal, and affordability, making them an excellent choice for those seeking early Legal Tender Notes in respectable condition.
The market demand for the 1862 $5 Legal Tender Note remains strong, particularly for notes in higher grades with the PPQ designation. Collectors and investors alike seek well-preserved examples due to their historical importance, rarity, and visual appeal. The connection to the Civil War era further enhances the desirability of these notes, as they represent a pivotal period in U.S. history when paper money played a crucial role in financing the war and stabilizing the economy.
The legacy of the 1862 $5 Legal Tender Note extends beyond its numismatic value. It serves as a tangible link to America’s financial history, reflecting the evolution of U.S. paper money and the government’s efforts to create a stable national currency. As a symbol of economic resilience during wartime, this note holds a special place in the collections of those who appreciate both history and artistry in numismatics.
The 1862 $5 Legal Tender Note Fr#61a, graded VF30PPQ Legacy, is a remarkable piece of American financial history. Its intricate design, featuring Alexander Hamilton, detailed engraving, and vibrant red and green color elements, make it a standout collectible. With its well-preserved condition, strong market demand, and historical significance, this note remains a prized addition to any collection of early U.S. currency, ensuring its continued appeal among numismatists and historians alike.