NNP

1864 Ten Dollar Compound Interest Treasury Note

Issued August 15, 1864

This three-year Compound Interest Note was authorized by a June 30, 1864 Act of Congress, and bore a six percent interest rate from the Treasury. Interest compounded every six months until maturity.  The note was a hybrid debt instrument: it served as legal tender, but because of its compounding interest bearing feature, it was often removed from circulation until maturity.  Like Interest Bearing Treasury Notes, the Compound Interest Treasury Notes were often withdrawn until redemption.

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