Fr. 202a (W-2600). 1861 $50 Interest Bearing Note. PCGS Choice About New 58. Specimen.

Fr. 202a (W-2600). 1861 $50 Interest Bearing Note. PCGS Choice About New 58. Specimen.，Offered is a remarkable National Bank Note Company produced Specimen of a prohibitively rare Interest Bearing Note type. This type features red border and security panels with ornate 50 die counter at top left and right. The portrait of Andrew Jackson is seen at lower left, Salmon P. Chase is at lower right and an allegorical vignette of Justice is at center. The serial number panels have been penned with 2551, though the signature panels are blank and each displays a single punch hole cancellation. The ornate blue printed back design is oriented on its side. This piece is mounted at the edges as noted by the grading service. Just three or four examples of this rarity are known and this is the finest graded by PCGS.<p><p><p><p><strong>$50 Interest-Bearing Notes, March 2, 1861, 6% Interest, 2 Years</strong><p>This specimen or proof serves to illustrate a note that might not be obtained in issued form.<p>Not many people know that this portrait of Andrew Jackson, engraved by Charles Burt, had been used by the National Bank Note Co. in March 1861 to print the numismatically famous $1,000 "Montgomery Notes" for the Confederate States of America! To the right is the portrait of Salmon Chase. To the upper left and right are counters with the denomination 50 at the center, with overlapping petals around (sometimes called a kaleidograph counter in Treasury records), each with "UNITED STATES / FIFTY / TREASURY." To the left and right of Justice is an overprint in the cycloidal configuration format, with "PATENTED APRIL 23d 1860" (issued to James MacDonough) in orange border at lower left, and "NATIONAL BANK NOTE COMPANY" in the border at the lower right." Spaces are provided for the autographed signatures of the Register of the Treasury and the Treasurer of the United States.<p>The back is printed in blue in the cycloidal configurations format, with "Pay to Bearer" vertically at the center, below which is a space in which the holder of the note could sign. "NATIONAL BANK NOTE COMPANY" and its 1860 cycloidal configurations patent date are printed vertically to each side of the center. About 19.5 cm wide by 10 cm high.<p>Bills of this authorization and denomination bore interest at the rate of 6% per annum for two years, reflecting that the credit of the Union stood higher than that of the Confederacy, which paid 8% on its notes. At the time of issue the circulating notes were sold at a discount from face value to reflect the interest to be earned for two years. At the end of this period, nearly all were redeemed. Most holders of these notes were banks. They did not circulate in general commerce. Also issued under the Act of March 2, 1861, and bearing interest at 6% for two years, were federal or Union bills of the $100, $500, and $1,000 denominations. As can be said for the Montgomery Notes, issued in precisely the same denominations, the Interest Bearing federal notes can also be considered as bonds. Indeed, they were widely advertised as such by Jay Cooke & Co.<p>At first, Francis E. Spinner personally autographed the issued notes (but not specimens). Later, clerks were trained to imitate his signature. The imprint is of the National Bank Note Company. <p>Although 46,076 of these notes were issued for circulation, only two are known today. Likely, there were plate varieties made of which we are not aware today.，From the Joel R. Anderson Collection of United States Paper Money, Part I. Earlier from Heritage Auctions May 2005 sale, lot 16686.，