Colonial Currency Grabs The Spotlight

When United States paper money prices first got hot a few decades ago—after long languishing as nothing but the sad pastime of “ragpickers”—speculation was that collectors finally realized that compared to U.S. coins of similar rarity, paper money was a bargain. Could we be seeing the same thing now with Colonial and, in particular, Continental Currency vis a vis U.S. paper money? Recent sales results at the Heritage Auctions Long Beach sale, and even more so in a smaller online sale of about 450 lots on September 1 dedicated solely to the colonial era, are replete with remarkable results. This is especially true for high-quality, problem-free examples on good paper, showing no signs of repair.

At first glance, one of the more shocking results in the specialized auction was $24,000 for the top note in the sale, a scarce $4 Yorktown Continental Currency issue of April 11, 1778 (Fr.-CC71) in VF35. This is $13,000 higher than any other price recorded for the note, a $9,000 sale four years ago for a VF30 that was missing a corner. It was also over $18,000 more than the $5,760 Heritage received for a VF25, serial number unknown, in February of this year. There are 38 recorded in all grades combined.

Dustin Johnston, Heritage Vice President, explained, “The Continental Congress was the first governing body of the unified 13 Colonies. As such, the currency emissions created by the Continental Congress were the first issues of the United States. The banknotes were issued alongside Continental Dollars and Fugio Cents. In this case, the Yorktown banknote issues are worlds rarer than Fugio cents, and some issues are on par in rarity with the most common Continental Dollars in silver. The dollar coins are now standard five-figure items, even in low grade. Currently, several collectors are attempting to assemble world-class sets of Continental Currency. A $24,000 realization for a problem-free ‘Yorktown’ in 35 represents the incredible demand in the market for a banknote issue that was the last emission of the Continental Congress, a Hail Mary to continue financing the Revolutionary War amid sinking confidence in the banknotes.”

Another example was the first lot. A Continental Currency $2 of May 10, 1775 (Fr.-CC2) in PMG Choice VF35 sold for $3,360 including the buyer’s fee. Heritage sold a VF30 in August last year for $348, and in January 2022, a Choice Uncirculated 63 for $2,880. Published price data shows no other note in XF or lower selling for more than $600. There are 88 listed in the Track & Price census.

The next lot, a $3 from the same issue (Fr.-CC3), one of two Choice Uncirculated 64 notes recorded, sold for $11,000, over $3,600 more than a PCGS Currency example realized in 2014. The price is a recognition of quality, given that no others have surpassed $2,000, even in About Uncirculated.

Until the winning bidder offered $9,000 for a July 22, 1776 $7 (Fr.-CC44) no such note had ever gone past $1,300. However, never had any such example been auctioned in PMG Choice Uncirculated 63 Exceptional Paper Quality (EPQ) either. Heritage says there is one other PMG graded 63, but that one lacks the designation for paper quality. Most of the 65 auction records in Track & Price cite prices in Extremely Fine and About Uncirculated.

The $3,600 price for a January 14, 1779, $50 in PMG AU55 EPQ (Fr.-CC97) marked the first time any such note ever sold for more than $2,000, and the most since Heritage sold a Choice Uncirculated 64 for $1,920 at FUN in 2021. This is a prime example of how the emphasis on quality may have a disproportionate impact on price. Two lots later, the same note in Extremely Fine 40 was hammered down at $336. The former had the EPQ designation, broader margins, and a fresher overall appearance than the latter, making it, in the mind of the buyer, worth the premium paid. There are about a dozen notes in the census listed as Choice Uncirculated 63 or 64. Will this kind of result draw any of these back into the market?

The $4,680 paid for an AU53 EPQ version of January 14, 1779 $80 (Fr.-CC102), the highest denomination of Continental Currency, exceeded all previous comparable examples by geometric multiples. The only notes close to it were a PCGS Superb Gem 66PPQ sold by Heritage at the 2012 FUN show for $4,312, and a Superb Gem counterfeit from the legendary Eric P. Newman collection in PCGS Currency CU63 that reached $4,560 in 2018. Counterfeits from this era are highly collectible and since they are not United States currency, are not subject to confiscation by the Secret Service.

Among Colonial issues, a Pennsylvania March 20, 1771, 20 shilling in PMG About Uncirculated 55 (Fr.-PA149) was, at $3,600, $1,000 more than it sold for in 2021. Comparable pieces have been selling for less than $1,000. What sets this one apart is that it was signed by Thomas Mifflin, one of the signers of the Constitution in 1787. It is the only Pennsylvania issue signed by him, as well the highest graded of the 45 documented other than a pair of uncertified eBay listings.