Friedberg 196 (W-1226). 1863 $10 Interest Bearing Note. PCGS Currency Very Fine 30.The $10 Interest Bearing Notes of 1863 were printed in two imprint varieties. Fr.196 (W-1226) notes were printed first with the imprint of the American Bank Note Company, while Fr.196a (W-1228) notes were printed second and bear the imprint of the Treasury Department. The notes were issued under an Act of Congress dated March 3, 1863 and bore 5% interest for one year. Roughly 620,000 notes were printed and issued for both varieties combined. The notes were sold at a discount and redeemed at face value to reflect the interest earned. Various interest starting dates are found on these notes seeming to commence with February 1, 1864. The present note bears a date of February 29, 1864.<p><p>The design is similar to that seen on more often (but still rarely) encountered Compound Interest Notes with the portrait of Salmon P. Chase at left, the vignette <em>Eagle, Flag and Capitol</em> at center (the same as seen on $1 Silver Certificates of 1899) and standing woman at right representing Peace. There are large green Roman numeral X counters to either side of the central vignette as well as an ornate green protector panel centered towards the bottom of the note. A red spiked Treasury Seal is found in the upper right. The back design is ornately printed in green, involving all but the margins. The Legal Tender clause is found at center, flanked by die counter 10s.<p><p>The engraved design elements are boldly printed on this example while the overprints are in vibrant green and red inks. The paper is bright and moderately circulated. The grading service makes mention of restorations which are skillfully accomplished and seen near the top and bottom center of the note.<p><p>There are nine Fr.196 notes listed in the Martin Gengerke census, though some are speculated to be of the Fr.196a variety. In any case the earlier variety is at least twice as rare as the latter. This note last traded publicly for $19,950 in May 2005. The market for "Middle of the Book" rarities such as this is far more mature now than it was then.<p><p>These were popular investments at the time, including by state-chartered banks who added these as well as other interest-bearing federal obligations to their portfolio, thought to be a safe haven in times of economic uncertainty. In due course, nearly all interest-bearing notes were redeemed and destroyed. Today, fewer than 50 remain of the offered variety. Most show extensive wear.<p><p><strong>PCGS Population: </strong>1, none finer.<em>From Kagins sale of June 1981, lot 398; Heritage Auctions sale of January 2002, lot 2624; Heritage Auctions sale of May 2005, lot 16680.</em>
