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1863 $10 Interest Bearing


Image Information

Type Currency
Title 1863 $10 Interest Bearing
Description

1863 Ten Dollar Interest Bearing Treasury Note

 

Issued March 16, 1864

 

These one-year Interest Notes were authorized by a March 3, 1863 Act of Congress, and bore a five percent interest rate from the Treasury. The note was a hybrid debt instrument: it served as legal tender, but because of its interest-bearing feature, it was often removed from circulation until maturity.  This allowed the Treasury to issue debt as currency, somewhat mitigating inflation as many notes were held by investors until redemption.

 

This example is from The Joe I. Herbstman Memorial Collection of American Finance

 

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