Colonial Currency - Continental Currency
A few pieces of info by Mark Wilson
Welcome to one of the oldest and yet newest hobbies in United States currency.
Oldest is obvious, as it is our countries earliest paper currency, but why newest? Well, while collectors have been at this for more then a century, it is an almost completely unknown area of collecting to our current generation.
To get a "feel" for the hobby, I have shown some of my notes to friends and associates, to get their feedback. Not one of them had ever seen even a single example of Colonial currency before in person, nor even in picture form. They had no idea such currency existed and all were very intrigued, especially with the hand signing. Without telling them about value, all of them thought they were worth Far more than their actual value. A normal reaction was, "How can something this old, with such historic significance, be so inexpensive?"... Food for thought.
While many of the notes do not have the attractive colors or intricate engraving of the more popular currency types, Colonial and Continental currency are bursting with history and subtle attractions that an advanced or even novice collector will quickly appreciate. Woodcuts instead of metal plates were used for images, hand pressed and inked on crude printing presses, hand written serial numbers and signatures, and the fight for independence to form a nation that drips from the words and images printed on these notes. * See the "My Thoughts" section down below for more on this subject.
My goal is to assemble a fantastic selection of the Highest graded notes that I possibly can, giving you the opportunity to cherry pick only the finest known examples.
About Grading.....
I have learned
that grading can be very difficult and that eye appeal (visual beauty)
is only one factor in determining a grade. Ink strike, centering,
embossing, paper quality, size of margins (or the lack of them) can
weigh heavily in the assigned grade. There may be very light creases or
tears that cannot be easily seen that will detract from the grade and
render a visually beautiful note to a lower grade. Stains will also
lower the grade but not as much as creases. Discoloration on an
otherwise suberb note may look a bit unsightly but the trained eye will
see the other factors and weigh all of them equally. That is why some
notes may look visually superior yet have a lower assigned grade than a
note that may have staining and not look as visually nice. It is much
like a toned coin.
Centering has a big impact
in the upper grades and I mean both sides. Unlike machine printed notes
from the 19th and 20th centuries, Colonial currency was hand created in
every stage. One side of the page was printed, stacked and allowed to
dry. Then the reverse side was printed in the same way, which allowed
for human error with the centering process. And tolorence standards
varied between the Colonies, so many off-centered notes passed by the
lack of quality control. And after the printing, all notes were at the
mercy of the cutter, which was interestingly performed with sissors!
That is correct - they were hand cut, one note at a time, so centering
further depended on the ability and care of the cutter. If you have a
well centered note (front and back) you have a real treasure!
Many notes were stored like stamps and were hinged into albums by early collectors. It did not hurt the note (actually they probably saved it from damage or destruction) and sometimes it is near impossible to see the hinge mark but a grading service will weigh this minor defect into the grade and you will see a note on the front of back of the encapsulation label. Sometimes a non-collectors have pulled the notes out of these albums, not realizing the value or the care that must be applied for such a delicate process, and have caused damage at the mounting areas. This too will reduce the grade and will be noted by the grading service.
A few colonies "cancelled" their
notes when turned in for redemption. Some cancellations were quite
severe (such as a large hole punched through the middle, typical for
the New Hampshire and Massachusetts colonies, or a triangular piece cut out at the bottom edge) while others cancellation
processes were almost impossible to see, such as a tiny knife cut slit
at the lower portion or an "X" cut at the center, which was typical for
the Connecticut colony (which also hole punched at times). The
cancellation should always be noted and most often is very acceptible to collectors, as there
may be very few (or maybe even no) uncancelled examples.
* Restoration has
been applied to many notes in some form over the years,
generally to support splitting since notes were usually carried in
wallets or money bags and folded in half. As an interesting tidbit, some were folded in quarters
to allow for hiding in a belt, shoe, or even a hat! Some were sewn
together with thread or pinned together when splitting occurred way
back when they were still in use. Remember, there was no such thing as tape back in the 18th century.
In all cases, restoration is noted by
the grading services so that the collector is aware. Obviously an
unrestored note of the same grade is worth more than a restored note
but many times the note is so rare that such a choice is impossible.
Also, there are many times when restoration is a good choice, as
preserving the note for future generations is a wise idea. In all cases
though, professional grading services will note such restorations on their holder. PMG will give such a note a "Net" grade (listing the work performed) and PCGS will
note such restoration on their label, allowing the buyer to decide.
*
Cleaning notes to remove stains may seem like a good idea but it will
eliminate the embossing completely. What is embossing? It is where you can see and feel letters
and designs raised on the opposite side of the note. Almost a "punch through effect". Such a note will be given
a "Net" grade by PMG and a restored grade by PCGS. You have to weigh
the advantages of a nice looking note against the disadvantages of a stained note and so it is always wise to ask
advice of an expert on such a matter.
Professional Grading:
You will notice that all of my notes have been graded and encapsulated
by PMG or PCGS. These are two very respected professional grading
services that I use. I am not affiliated with them in any way and both
are quite strict, assuring you of an accurate and independent third
party grade.
What has brought new attention into this hobby (and with it, many new collectors) is professionally grading and encapsulation. Professional grading brings a level of confidence to this hobby that encourages new collectors to buy without fear.
Why is that? Well, unless you are a skilled grader and have an excellent knowledge of currency from this early era, it is impossible to make a wise decision when buying. How can you know if the note is real? Or if the signatures are authentic? Or if the note has had professional restoration performed? All of these troubling questions are answered when you purchase a note that has been professionally graded and encapsulated. In conjunction with this level of confidence, both grading services have developed a Census, which allows you to know just how rare a note really is in a particular grade.
Because of the problems associated with hand signing and documentation, Colonial and Continental currency was the last to be professionally graded, as it has taken special training and lots of extra research for the grading companies to handle.
Professional grading brings a solid level of confidence to
both seller and buyer as the assigned grade Will Not Change when it is
time for you to sell your cherished treasure. Now this is fantastic news for a collector. because how many horror stories have we witnessed over the years, where a collector puts a tremendous amount of time and money into a collection only to find that his treasures are in lower grade than he had thought, or have been tampered with, when it is time to sell?
Now if you buy a note encapsulated at XF (Extremely Fine) 40 for instance, it will remain an XF 40 when you decide to sell it or trade it. No more hassles over grade.
In addition, as your note
is encapsulated in a sealed and extremely strong holder, it is
protected from moisture, handling damage, and aids to slow down the
aging process.
Durability and storage:
A wonderful piece of news about this type of
currency is that it is made out of cotten "rag" paper, which had a very high
cotton content. Much higher than later currency. Unlike contemporary paper that is made from ground wood
pulp and bleached for whiteness (and is very susceptible to decay),
cotton rag paper is of a very high quality and is extremely durable. All United States currency has partial cotten content, making currency far more durable than regular paper, but Colonial and Continental currency had an even higher content of cotten. With
proper storage (cool, dry, dark environment) Colonial notes can last
for thousands of years. Now THAT is confidence!
Grading Terminology:
There are various price Guides and all have a fairily similar system, generally giving three example grades and three corresponding prices.
VG = Very Good
VF = Very Fine
UNC = Uncirculated
Obviously there are many different grades in between these listed examples and so a collector must understand that a price guide is just that - a guide to give you an approximation of what the value might be.Here is a more comprehensive look at the grading terms, along with numeric values, as used by PMG:
PR 1= Poor
FR 2 = Fair
AG 3 = About Good
GD 4 - 6 = Good
VG 8 - 10 = Very Good
FN 12 - 15 = FN
VF 20 - 35 = Very Fine
XF 40 - 45 - Extremely Fine
AU 50 - 58 = About uncirculated
MS 60 - 70 = Mint State Uncirculated
PRICING:
As with all hobbies, grade eventually becomes a driving force in valuation. So as the hobby expands (even just a little), prices will escalate. The lower grade and more common examples generally maintain their current values, so longtime collectors who simply love the history and are not money driven will not really be affected. However, prices can change quickly and radically at the top end (highest grade) across the board.
We are just beginning to see this trend occur in the market, where a note (listed at $300.00 in the Friedberg price guide in uncirculated condition for example) will sell for a multiple of that value based upon two factors: 1). Assigned grade and 2). Ranking on the Census.
As more collectors enter this hobby the pressure to acquire the Very Best will increase and prices will rise, even with what we consider to be common notes. For an understanding of this phenomenon simply a look at the coin, comic book, or sports card hobbies. But since many currency collectors are familiar with coins, I will use this hobby as an example. It can be Mercury Dimes, Buffalo Nickels, Lincoln Pennies, or any coin you can you can think of. In all cases, owning one of the top Census examples will cost you many times the price of the exact same coin in just slightly lower condition. It is the same with all currency types from the 19th and 20th centuries as well. As an experiment, contact a few major coin and currency dealers and ask them to quote you the price of a common or uncommon coin or note (you choose the example) in nice mid grade condition. Then ask them the price of the same example in the highest grade listed on the Census. I think you will be shocked at the price differences. It will not be fifty percent more or twice the cost but more likely ten times to one hundred times the price! And that is a mild estimate, as in some cases it can be a thousand times the value of a mid grade example. The point is that the Very Best in any hobby really has no limits, it just depends on how many collectors want it.
About my scans...
I realize that I do not have huge images but since all
of my notes are professionally graded, you do not have to worry about
trying to figure how nice a particular note is. The labels are clearly readable. Many of my notes were
purchaced at a much higher grade from dealers but I accept the assigned
grade given by the services. I make certain you get what you pay for.
How notes are listed.....
The numbering I use for all currency is found in the Friedberg "Paper Money Of The United States". It is a very informative book and I suggest you pick up a copy. The price structure is not very accurate for high grade or truly rare encapsulated notes but it is a fantastic source for understanding what exists and getting a grasp on the size of the hobby. Much like the Red Book for coins, or the Overstreet Price Guide for comic books, the Friedberg Guide cannot determine values on the very top end, nor can it give you an accurate assessment of how many exist in a particular grade. And this is where the PMG or PCGS Census becomes a valuable sister tool. Together they will give you a much more accurate picture of just how rare your note is in a particular grade.
Now, do not be surprised if the value increases greatly based on a slight increase in grade because it definitely will. There will be tremendous pressure for the higher graded notes and the #1 Highest grade of a particular note has extreme potential to increase dramatically in value.
The following colonies each issued their own form of currency but as we grouped together to
become a stronger force, a united group, Continental currency was issued as a combined
effort. Below are the abbreviations for each form of currency.
CC = Continental Currency
CT = Connecticut
DE = Delaware
GA = Georgia
MA = Massachusetts
MD = Maryland
NC = North Carolina
NH = New Hampshire
NJ = New Jersey
NY = New York
PA = Pennsylvania
RI = Rhode Island
SC = South Carlonia
VA = Virginia
VT = Vermont
My personal thoughts Colonial and Continental currency....
I see this portion of the currency hobby to be the most exciting of all because it represents the creation of the United States in a most intriguing way. You can actually follow the process of the Colonies struggling for independence and then merging into a united group as the friction between Europe and the new America became nearly intolerable.
It was here that the plan for paper money was devised and printed, and the laborious process of changing the way the common people thought began its difficult journey. In today's economy it is normal and desirable to use paper money but in the very beginning of our country, it was a slow process to build such trust and there were many pitfalls along the way. The idea of exchanging tangible items of known value, such as animals, produce, silver or gold for a small paper note that could fit in your pocket was a very troubling concept for most.
It was here that counterfeiting became an immediate problem and created such a panic that the death sentence was the standard measure awarded to such unscrupulous destroyers of the Colonies financial health. No other currency in our history printed "Death To Counterfeit" boldly on the bill. In order to undermine the struggling colonies bid for independence, England flooded the colonies with counterfeits on several occasions.
It was here that the bills were hand numbered and signed by men (many who would go on to distinguished careers, including some who signed their names to the Declaration Of Independence and the US Constitution). The hand signing was a difficult chore but was performed as an anti-counterfeiting measure, and usually signed by at least two representatives. This procedure obviously became impossible as our Nation formed and grew in size (talk about writer's cramp!) but it was common practice for more than seventy five years.
It was here that we meet up with an early Paul Revere and Ben Franklin, both working away at their print shops and having no clue yet regarding what was to soon come upon them. Both of these famous patriots created some of our currency's most famous designs, mottos, slogans, and anti-counterfeiting measures.
It was Ben Franklin that helped to create the first United Colonies note in early 1776 (the term "Colonies" would later be changed to "States"). Thirteen interlocking circles, representing each of the thirteen Colonies, surround a sun that boldly says "We Are One" in dead center. Surrounding this is "American Congress". This note seriously angered Europe's leaders as it was a bold defiance of Europe's ownerership. This was eleven years before this design was used for the most popular and earliest US penny, the Fugio Cent, 1787.
And it was Paul Revere who created the famous "Sword In Hand" note, which shows a continental soldier raising a sword in his right hand and holding England's own Magna Charta in his left. Above this powerful image is the words "Issued In Defence Of American Liberty". This series of notes was issued in 1775 - 1776 by the Massachusetts colony, and it also angered the British, quite royaly I might add!
And there are stories, many more of them, that will continue to hold our attention.
Frankly, I cannot see any other form of United States currency (even remotely) having the tremendous impact that these notes do.
