Friedberg 2 (W-610). 1861 $5 Demand Note. Philadelphia. PCGS Currency Gem New 66 PPQ. Face Proof.Hessler-242C. Plate D. Printed on India paper on card. Imprint of the American Bank Note Co. New-York. Across center, full green color protector with large 5 flanked by intricate green pattern counters. Top center, Gothic title over obligations, payable office bottom center. Left end, statue of Freedom from the U.S. Capitol building. Lower right, Alexander Hamilton. A stunning example in an exceptional state of preservation. The green protector contrasts beautifully against the bright white India paper and deep black printing. This example is easily among the finest of all Demand Note color face proofs from all offices that emitted proofs. Over the years, we have always believed these Demand Note proofs to be undervalued. As there are few high-grade issued notes, these are especially noteworthy as well as beautiful.pThis series was authorized by the Act of July 17, 1861, at a time when Treasury funds were low. It was thought that such paper notes would be a substitute for the paying out of specie (gold and silver coins). At the time hopes were high for a quick Union victory. The situation changed dramatically a few days later when the first major battle between Union and Confederate troops took place in Manassas, Virginia, a short distance from the nations capital. Crowds turned out to watch the vanquishing of the rebel troops. After a seeming Union dominance at the outset, the tide turned and the Confederates overwhelmed the Union troops which scattered in disarray.pThe monetary situation remained in flux for the rest of the year. Most Demand Notes were redeemed for coins by that time. After Legal Tender Notes were issued in early 1862 (exchangeable at par only for other Legal Tender Notes and not for specie), the remaining Demand Notes sold at a premium.pFrom Stacks sale of the 52 Collection, Part II, January 25, 2011, lot 3298; Arthur M. Kagin Collection; R.M. Smythe & Co.s 2003 Memphis Auction #229, June 13-14, 2003, Lot 2451; Bowers and Merenas sale of the Herman Halpern & Gerald O. Warner Collections, March 6-8, 1997, part of lot 1008.p
