Fr. 202c (W-3920). 1861 $500 Interest Bearing Note. PCGS Choice About New 55. Specimen.

Fr. 202c (W-3920). 1861 $500 Interest Bearing Note. PCGS Choice About New 55. Specimen.，This National Bank Note Company produced Specimen represents the only known example of this 1861 $500 Interest Bearing Note type. Green border prints and security panel are seen along with ornate 500 die counters at top left and right. The "Grand Old Man of the Army," General Winfield Scott, is portrayed at center. Generic NBNC vignettes of a man traveling with a pack at lower left and a farmer resting with a scythe at lower right round out the face design. The back printing is in brown and involves all but the margins. The note is mounted at the edges as is the other 1861 Interest Bearing Specimen in the auction. This example is plated in the current edition of the Friedberg catalog.<p><p><em></em><p><strong>$500 Interest-Bearing Notes, March 2, 1861, 6% Interest, 2 Years</strong><p>At the time of issue the notes made for circulation were sold at a discount from face value to reflect the interest to be earned for two years. Most buyers were banks and security houses which retailed them to investors. They did not circulate in commerce, but were held until maturity, then redeemed at par. Proofs are a special case, of course, and serve to illustrate the designs of many notes that are not otherwise available.，From the Joel R. Anderson Collection of United States Paper Money, Part I. Earlier from Heritage Auctions sale of May 2005, lot 16688.，