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Archive-name: coin-collecting/paper-money-faq Last-modified: Feb 15, 1995 Paper Money FAQ for rec.collecting.coins (currently maintained by Bruce Giese, giese@prospero.dev.cdx.mot.com) ------------------------------ Subject: Introduction and Disclaimer This is the FAQ (Frequently Asked Questions) on the subject of paper money collecting for the newsgroup rec.collecting.coins. There is no guarantee of accuracy and no liability assumed by anybody. That's life. Location of FAQ: rtfm.mit.edu in the directory: /pub/usenet-by-group/news.answers/coin-collecting This FAQ generally gets posted on the 12th of every month. However, when the 12th falls on a weekend, I usually post it on the Friday before (in this case March 10, 1995). ------------------------------ Subject: Credits and Copyright This FAQ was initially created and submitted for *.anwers approval by Bruce Giese (giese@prospero.dev.cdx.mot.com). This FAQ is copyrighted by sections. When making modifications, the copyright should include those who contributed to the substance of the section, with names in the order of contribution level. Just to be fair to everyone, past and future. Sections 3.9, 3.10, 3.12, 3.13 are copyright 1995, Alan Herbert CTCU29A@prodigy.com Sections 1.2, 1.5, 1.6, 1.7, 1.9, 1.11, 1.12, 2.6, 2.9, 3.8 are copyright 1995, Bruce Giese and Alan Herbert Sections 4.5 are copyright 1995, Alan Herbert and Bruce Giese all other sections are copyright 1994, Bruce Giese The contents of this FAQ can be reproduced in whole and/or in part for free without anybody's written or express permission as long as this Credits and Copyright subject section is included. Small portions can be posted to relevant Usenet newsgroups without this copyright section. Mylar D and Tyvek are trademarks of The Dupont Corporation. ------------------------------ Subject: Contents 1. GENERAL INFORMATION ON THE HOBBY 1.1) Who collects paper money? 1.2) What kind of paper money do people collect? 1.3) What's the best way to get started collecting? 1.4) I'd like to trade/buy/sell paper money, what should I do? 1.5) How does the typical paper money transaction occur? 1.6) How should I store my banknotes? 1.7) Is there an all encompassing reference book for paper money? 1.8) What is a "Pick" number? 1.9) How do you grade the condition of paper money? 1.10) Who are some dealers and professionals that I can contact? 1.11) What are some societies/organizations that I can join? 1.12) Are there any relevant periodicals? 1.13) Who is J.S.G. Boggs and why is he famous for paper money art? 2. "I FOUND A..." QUESTIONS 2.1) How do I get a banknote officially appraised? 2.2) I found a US 1935/1953/1957 Silver Certificate in circulation, how much is it worth? 2.3) Is a US 1963-1993 note worth anything? 2.4) Are US two dollar bills worth anything? 2.5) I found a very old banknote in perfect condition in a very old book, what should I do? 2.6) I found a note from country XYZZY, how much is it worth? 2.7) I found a weird US Federal Reserve Note with the little numbers in the wrong place and poor quality printing, is it counterfeit? 2.8) I found a note with a star next to the serial number, what does this mean? 2.9) I found a banknote that says "Government of Japan", what is it? 2.10) I found a note marked as "SPECIMEN" with serial number of all zeros, what is it? 2.11) I found a Chinese banknote that is labelled "Hell", what is it? 3. USA PAPER MONEY 3.1) I heard the US is changing its paper money, is this true? 3.2) What is a National Banknote? 3.3) What are silver certificates and gold certificates? 3.4) Can you exchange silver certificates for real silver? 3.5) I heard that some US notes are stamped HAWAII, why? 3.6) What is fractional currency? 3.7) What is obsolete currency? (broken banknotes, wildcat notes) 3.8) I heard there is a lot of counterfeit US notes worldwide, is this true? 3.9) Is it illegal to copy U.S. paper money? 3.10) Is it illegal to use U.S. paper money on products or in advertising? 3.11) Are old U.S. notes still legal tender? 3.12) Are banknotes with Barre's signature good investments? 3.13) What's the story on the Bank of the United States 1840 $1,000 note with serial number 8894? 4. WORLD PAPER MONEY 4.1) How do I get banknotes from country XYZZY? 4.2) How do I get banknotes from every country in the world? 4.3) What was Operation Bernhardt? 4.4) What is concentration camp money? 4.5) Does anybody collect Conferate States of America notes? 4.6) How many countries currently issue paper money? 4.7) Are there really plastic banknotes? 4.8) What is a military issue or Military Payment Certificate? 4.9) What is the highest denomination note ever created or issued? --------------------------------------------------------------------- 1. GENERAL INFORMATION ON THE HOBBY ------------------------------ Subject: 1.1) Who collects paper money? The paper money collecting hobby has been very well established for decades and there are many thousands of collectors worldwide. Paper money collectors are not as common as coin collectors, but they are still very active in supporting the hobby. ------------------------------ Subject: 1.2) What kind of paper money do people collect? Tom Denly (a well respected member of the hobby) identified 7 main areas of interest in a recent issue of Bank Note Reporter. I've [Bruce] split area 5 into 5a and 5b, because I consider them to be somewhat separate, and 7 into 7a and 7b because the world consists of more than just the USA. Alan Herbert added category 8. 1) large-size US type notes 2) US national bank notes (issued by local banks chartered by the US) 3) US fractional currency (notes from the 1800s of less than 1 dollar) 4) pre-US colonial currency 5a) US obsolete notes (from private banks of the 1880s) 5b) Confederate States of America notes 6) small-size US type notes (the size we're familiar with now) 7a) recent and general world paper money 7b) older and rare world paper money 8) error notes, including printing, paper and cutting errors You can see the obvious slant toward US currency. Unfortunately, much of the really interesting US paper money is now very expensive. The very striking notes of the 1800s and early 1900s are now out of the price range of most casual collectors. Some people collect travelers' checks, and stocks and bonds, which might not be considered as paper money. There *is* a large group of people who collect world paper money. Some people focus on specific countries of interest and even specific time periods in specific countries. Often interest in paper money follows an interest in the general history as well. Some collectors focus on things ranging from notes with portaits of Queen Elizibeth to notes with pictures of boats to notes with specific serial numbers (all the same digit or very low serial numbers). A very common type of world paper collection is to collect notes from "every country". The definition of every country can vary greatly, but this type of collection is relatively inexpensive. One thing to keep in mind is that the quality of books on paper money is very high and they play a major role for collectors. Lots of people have dedicated their lives to researching and compiling information on paper money. It just makes sense to utilize and build on what they've already done. ------------------------------ Subject: 1.3) What's the best way to get started collecting? Probably the best way to start is to subscribe to Bank Note Reporter. It's a sort of monthly newspaper for paper money collectors and not only does it carry all the latest news about new issues, currency changes, etc., it also has advertising from a very large number of dealers and it lists paper money shows in the US and around the world. BNR offers free samples to anyone (not just in the USA). Subscriptions run about 30 dollars for 1 year (around 40 dollars outside the US). It's a very good source of information. The address is... Bank Note Reporter 700 State St. Iola, Wisconsin 54990 USA (715) 445-2214 within the USA, for *subscriptions* *only*: 1-800-258-0929 The Professional Currency Dealers Association offers a small booklet called "How to Collect Paper Money" which, if I recall correctly, even contains a few sample world banknotes. The book is very cheap. See the section on societies and organizations for the PCDA address. ------------------------------ Subject: 1.4) I'd like to trade/buy/sell paper money, what should I do? The most effective way to get paper money is not through general circulation, but through dealers, collectors, auctions, and shows. About once a week someone posts a message asking for people to trade/buy/sell paper money. Even with the large audience of rec.collecting.coins, you don't reach many collectors. But this is still one way many people get notes. The International Bank Note Society's quarterly journal carries free advertising "of a non-commercial nature" for people wanting to update their personal collections. Bank Note Reporter also has a lot of small cheap ads for this. These are good places to look for people to trade notes. Another way to buy/sell notes is through mail auctions. The IBNS has frequent auctions and lots of individuals have their own (which are advertised in BNR). But I find the most effective, painless, and sure fire way to buy and sell notes is through dealers. Dealers range from people who just have large collections to those who keep a large stock of notes for the specific purpose of selling them. In any case, dealers have developed the methods which are most effective for making collectors happy with their transactions. Some are notoriously grumpy, but most are truly friendly and helpful. Some people prefer to collect notes from general circulation. This is a good way for someone to start getting interested in paper money, but it's really not a very effective way to collect it. ------------------------------ Subject: 1.5) How does the typical paper money transaction occur? Most paper money dealers don't have stores in the same sense as coin dealers. Most transaction occur through the mail and over the phone. It may seem less than ideal initially, but it works very well. Nearly every dealer who works through the mail offers a money back no questions asked policy. If the note you buy is not really the one you want, you can almost always return it. Typically, collectors will use an adequate reference book to find the note they want. Then, they look through the many price lists they might have to find a dealer who offers the same note in an acceptable condition for an acceptable price. Lots of dealers put parts of their price lists in Bank Note Reporter ads. The collector then either calls or faxes the dealer with a credit card number or send a check in the mail. The next most typical transaction occurs at paper money and coin shows. Often dealers will offer discounts at shows, but usually only when you buy enough stuff. It's all fairly informal really. Shows are also a good way to learn about notes and the hobby in general. Another type of transaction is where a collector sends notes to a dealer who may then buy them or return them. It's best to ask the dealer first with the list of notes you plan to send. This is an acceptable and safe way to do business as long as the dealer is reputable (membership in PCDA or IBNS is a good reference as dealers can and do get thrown out for violations). Yet another type of transaction is the mail auction where collectors all put up their notes for auction (usually through the mail) and then a list of notes is sent out to a large group of people who bid on the notes through the mail. Thousands of notes are auctioned this way. The IBNS has regular auctions with about 2000 lots per auction and minimum bids starting at 2 US dollars per lot: clearly an auction for regular collectors. A less typical transaction is where people place ads in Bank Note Reporter or the IBNS Journal or elsewhere asking to buy/sell/trade a specific set of notes. The really expensive stuff (1,000 to 50,000 US dollars) is usually sold at large auction houses such as Christies and some paper money specific houses (Spinks, Stacks, etc.). They also handle lots in the 300 US dollar range and above. And of course, there are cases where people advertise things like, "Bolivian citizen looking to trade Bolivian notes for Canadian notes." When buying notes, avoid notes that have been cleaned, patched, ironed or otherwise "fixed up" to improve the looks. Be careful of notes which have missing details, serial number digits, etc. They may have been removed with an electric eraser. ------------------------------ Subject: 1.6) How should I store my banknotes? To keep them in the best possible condition you should use Mylar holders. Common household products such as plastic wrap, plastic bags, window envelopes, etc. should not be used for storing paper money. Most plastics contain PVC, which deteriorates with time and heat, releasing acids and gases which will migrate into the paper, resulting in the notes appearing to have been soaked in oil, or so brittle they shatter at a touch. Use only those products (such as mylar and other inert plastics) which have been tested and approved for long term paper money storage. Notes should be stored or displayed away from direct sunlight, to avoid fading. Repairs should be made only with products that are stable. "Magic" tape and other plastic tapes will leave permanent stains on notes. There are individual Mylar holders which look like plastic envelopes and cost about 30 cents each, usually in packs of 50 or 100. You can also keep notes in regular paper envelopes as well, although they're more liable to get damaged in handling. If you really want to get fancy, there are special albums with associated Mylar holders. Each page holds 1, 2, 3, or 4 notes (there are 4 different types of pages). This stuff is made by a company called Lindner and it costs more than the individual holders. I believe the album and 20 pages cost around 60 US dollars. Additional pages are something like 20 dollars for 10. You can fit maybe 50 pages in one album. Unfortunately, Lindner made the pages so they would only fit in their album. Theoretically you should use both the individual Mylar holders and the Lindner pages, but for anything worth less than 20 dollars, I just use the pages. They're a lot like Mylar. Most big-time dealers carry Mylar holders and Lindner albums. ------------------------------ Subject: 1.7) Is there an all encompassing reference book for paper money? There are a few key reference books for paper money. Standard Catalog of United States Paper Money, 13th edition, Krause Publications, by Chester L. Krause and Robert F. Lemke, costs about 22 dollars and contains 14,000 market valuations and 550 photos. If you're starting in most US paper, you want this book. Standard Catalog of World Paper Money, Volume II, General Issues, 7th edition, by Albert Pick, Krause Publications. Costs about 55 dollars and contains your basic national paper money. 1280 pages and 10,000 black and white photos. If you're starting in world paper money, you want this book. The 7th edition came out in April 1994 and has notes up to around Feb 1994, which includes all the new countries. Standard Catalog of World Paper Money, Volume I, Special Issues, 7th edition, By Colin Bruce II and Neil Shafer, Krause Publications. Costs about 55 dollars and contains state, provincial, and commercial bank issues not covered in Volume 2. Has 1056 pages and 8,000 black and white photos. Massive. Standard Catalog of United States Obsolete Bank Notes By James Haxby, you guessed it, Krause Publications. Costs 195 dollars and is the mother of all obsolete bank note books. Many of the states have their own books which are considerably cheaper. Check first before blowing 200 dollars on this 4 volume set. For instance, Rhode Island obsoletes are covered by the excellent book by Durand on the subject (which costs around 25 dollars). Now if I could just afford to buy all of the RI obsoletes from Tom Denly and the Balbatons... :-) Confederate States Paper Money, by Arlie R. Slabaugh as always Krause Publications (get used to that name). Costs about 13 dollars. Early Paper Money of America, by Eric P. Newman Krause, around 50 dollars. Primarily Colonial paper money. ------------------------------ Subject: 1.8) What is a "Pick" number? Refers to Albert Pick, author of the world paper money book on general issues. Nearly everyone who deals in world paper uses this system for identifying notes. Every note within a country has a number associated with it, often shown in the form "P-34" for general issues and "P-S34" for specialized issues (volume 1). Since every country has the same numbers, a note is identified by country and Pick number. For example, USA P-480 is your garden variety series 1988 1 dollar bill. ------------------------------ Subject: 1.9) How do you grade the condition of paper money? Condition of a note is critical to its value. Thus, proper grading is important. Here is a general guideline. Crisp Uncirculated, UNC or CU: This means absolutely not the slightest sign of any handling or wear or folding or *anything*. Almost Uncirculated (or About Uncirculated) AU: This means there is a slightly detectable imperfection such as a counting fold on one corner or slightest fold in the center (nothing which breaks the surface of the paper). Extremely Fine, EF or XF: Generally three light folds or one strong fold which breaks the surface. There may be slight rounding at the corners. Very Fine, VF: May have several folds although the note is still crisp and has a minimum of dirt. Fine, F: A circulated note with folds and creases, but no tears which extend into the printing. This is your average in-the-wallet note. Very Good, VG: Tears and small holes can be present. The note is not crisp at all. The is your lower quality in-the-wallet note. Lots of people on the 'net don't realize that a note in "very good" condition is really pretty lousy. Good, G: Small pieces missing, graffiti. A worn out note. Fair: Major tears, etc. A badly worn out note. Poor: Even worse. ------------------------------ Subject: 1.10) Who are some dealers and professionals that I can contact? For now, the only "resident" professional in rec.collecting.coins is Alan Herbert (a significant contributor to this FAQ). He can be reached via e-mail at the address in the Credits and Copyright section of this FAQ. It's not possible to include the hundreds of paper money dealers worldwide, but I'll include a variety of some prominent ones and some minor dealers who have been in business for at least a few years, often for decades. When price lists are not free, the price is almost always deductable from any orders (so it's free if you end up buying something). Gary Snover, Currency of the World P.O. Box 9696 San Bernardino, CA 92427 USA (909) 883-5849 FAX (909) 886-6874 Free 85 page price list This is an excellent source of inexpensive banknotes from most world countries. Also a source of Mylar and Lindner albums. William G. Henderson P.O. Box 73037 Puyallup, WA 98373-0037 USA (206) 848-9194 FAX (206) 770-0880 Good price list, costs fifty cents in the US, one US dollar outside the US. (full subscription is 4.75 US, 5.75 Canada, 12.00 overseas). Inexpensive world paper money. BTW: The town name is pronounced pyoo-all-up Denly's of Boston P.O. Box 1010 Boston, MA 02205 USA (617) 482-8477 Tom has multiple full page ads in every Bank Note Reporter with listings of US currency: nationals, obsolete, colonial, etc, plus he is the most visible dealer of Mylar holders and Lindner albums. Mention fishing and you might get a discount. :-) 5 dollar masive colonial price list. Devonshire Rare Coin Galleries 294 Washington St., Suite 411 Boston, MA 02108 USA (617) 542-0030 Offers a lot of US error notes, seems like most are expensive. Not sure if they have a price list. Colonel Grover Criswell Box 6000 Salt Springs, Florida 32134 USA (904) 685 2287 Confederate and related stuff I just picked this out of Bank Note Reporter, so there are probably more prominant CSA dealers. Notes for Africa P.O. Box 91086 Pasadena, California 91109 USA A good source for all African notes. I haven't seen any other major dealers of only African notes. free price list. Note Printing Australia Numismatic Sales GPO Box 4766UU Melbourne, Victoria, 3001 Australia +61 3 204 7746 This printing company makes plastic banknotes for various countries and offer lots of deals for collectors. ------------------------------ Subject: 1.11) What are some societies/organizations that I can join? Society of Paper Money Collectors (SPMC) Bob Cochran, Secretary P.O. Box 1085, Florissant, MO 63031 USA 1,500 members The SPMC is mostly for US paper money collecting. I believe they've been around since 1963. Professional Currency Dealers Association (PCDA) Kevin Foley P.O. Box 573 Milwaukee, Wisconsin 53201 USA You can't join this group as it's just for dealers. Send SASE for free list of members (i.e. respectable dealers). Also, send 59 cents for the booklet "How to Collect Paper Money" International Bank Note Society (IBNS) A good organization for learning about paper money. They also have frequent large mail-in auctions and an enormous library accessable by mail. The IBNS Journal is a fairly scholarly source of info and free ads for non-dealers. They have a few thousand members. General Secretary P.O. Box 1642 Racine, WI 53401 USA (414) 554-6255 Assist. General Secretary 36B Dartmouth Park Hill London NW5 1HN U.K. 071 281 0839 Latin American Paper Money Society Arthur C. Matz, president 3304 Milford Mill Rd. Baltimore MD 21244 Dues $8 Publication: "Lansa" three times a year. ------------------------------ Subject: 1.12) Are there any relevant periodicals? See the section on societies and the section on how to get started. The main periodicals are Bank Note Reporter and the IBNS Journal. The SPMC and LANSA have periodicals, too. ------------------------------ Subject: 1.13) Who is J.S.G. Boggs and why is he famous for paper money art? Boggs is an artist who draws paper money, but not for the sake of counterfeiting (although the US Secret Service is not totally convinced). Boggs' notes are very high quality and often include subtle humor in their text and portraits. Because his subject matter is paper money, Boggs has been very well received by the paper money dealers (especially after having tables at some of the major paper money shows). In addition to the art, Boggs is notorious for creating thought provoking transactions with his art, offering it for goods/services in lieu of real money. The people who accept this transaction get the better end of the deal. Boggs' real message is that money is an abstract concept that can be manipulated in interesting and creative ways. -------------------------------------------------------------------- 2. "I FOUND A..." QUESTIONS Paper money has both a market value and a personal value. These two things are very different. There are big time dealers who keep a note from circulation just because it has an interesting serial number or for other sentimental reasons. Don't let "market" forces blur the real meaning of being a collector. ------------------------------ Subject: 2.1) How do I get a banknote officially appraised? The only way to *really* determine the value of a note is to have a reasonably qualified person look at the note. Sometimes a collector will send a photocopy of both sides of a note for identification rather than the note itself. If you want a best effort, members of rec.collecting.coins can almost always identify a note, given enough information about it. See the "I found a note from country XYZZY" for what information to include about the note. ------------------------------ Subject: 2.2) I found a US 1935/1953/1957 Silver Certificate in circulation, how much is it worth? This is by far the most common paper money question asked in rec.collecting.coins and the answer is almost always that it's only worth face value on the market. If the note is in absolutely uncirculated condition, it might be worth a little bit more (ten dollar notes can be worth many times face value in unc condition). There are some varieties of silver certificates from these series that are worth a good deal of money, but nearly all of the silver certificates which show up in circulation aren't worth much. It might be worth something to you, and that's what really counts. ------------------------------ Subject: 2.3) Is a US 1963-1993 note worth anything? Usually not. Notes from 1963 onward were collected in large quantities and the supply of most notes is not going to be limited anytime soon. Of course notes with errors, replacement notes (with stars next to serial number), low serial numbers, interesting serial numbers, etc. can be worth much more than face value. ------------------------------ Subject: 2.4) Are US two dollar bills worth anything? A 1976 two dollar bill has no inherent market value unless there's something else about it to make it valuable. A number of other two dollar bills have been printed with series 1963, 1953, 1928 and previous. The older notes are generally worth more, but their value depends on the signatures. ------------------------------ Subject: 2.5) I found a very old banknote in perfect condition in a very old book, what should I do? Treat it as if it was worth thousands of dollars until you find out its real market value. People *do* find rare notes in books in this manner every now and then. ------------------------------ Subject: 2.6) I found a note from country XYZZY, how much is it worth? Many people have had notes identified on rec.collecting.coins by posting a description of the note and having the resident experts identify it. I've even identified notes which were digially scanned with the image sent to me via e-mail where I displayed and identified them (e-mailing the response). If you want to get a rough estimate on the value of a particular note, you need to provide a lot of information about it. Sometimes, the value of a note can differ based on dates, color, or even the number of digits in the serial number (although not usually). The key things to include are these ten things... 1: country (if you can't tell, describe the lettering as best as possible and any features which might help identify country). 2: units of currency (e.g. pesos, pesos oro, francs, pa'anga, dollars, dollars in gold coin, new cruzeiros, really-really-new cruzieros) 3: denomination (1? 2? 3? 5? 6 1/2? 100,000,000?) 4: issuing authority if any (e.g. Hong Kong and Shanghai Banking Corporation, Federal Reserve Bank, The United States, Northern Bank Ltd.) 5: type of note, if indicated (e.g. silver certificate, military payment certificate, interest bearing note) 6: date, if any, anywhere on note (look carefully) 7: all identifying features (e.g. portrait of bald guy lower left, naked woman riding shark on front left, tall building on front center, security thread in paper, overprint reading CHUNGKING) 8: colors (e.g. red and green on front, black ink on back) 9: condition of note (see section on grading notes) This is most important since the value usually varies tremendously depending on condition. This generally implies you shouldn't be mishandling the note yourself. 10: signatures, if you can read them. Sometimes value depends on this. Occasionally, the value depends on the title of the people who signed the note. 11: watermark, if the note has one. Often the value of a note depends on the type of watermark. ------------------------------ Subject: 2.7) I found a weird US Federal Reserve Note with the little numbers in the wrong place and poor quality printing, is it counterfeit? It's probably a web press note. The BEP switched over to a rotating drum method of printing some notes and changed some of the minor details of the notes in the process. In the initial runs, the quality wasn't too good and the notes looked like counterfeits. ------------------------------ Subject: 2.8) I found a note with a star next to the serial number, what does this mean? It's a replacement note. When errors are found on notes during the printing process, the notes are destroyed and replaced with "replacement notes". This is so a range of serial numbers contains a predictable number of notes. The replacement notes have their own serial number range which is independent of the regular notes. The US error rate is supposed to be something on the order of one per 100,000 notes. Replacement notes are generally worth more than regular notes, especially in combination with an already rare note or low serial number. As always, condition is very important. Most counties have replacement notes, although not all of them use a star marking to identify them. Some countries use a "Z" or "ZZ" indicator in the serial number or some other method. ------------------------------ Subject: 2.9) I found a banknote that says "Government of Japan", what is it? It's Japanese Invasion Money (JIM). This was printed by Japan for use in The Philippines, Malaya (not Malaysia), and Burma during World War II (and presumably beyond) as part of the so called Co-Prosperity Sphere. Enormous quantities of these notes were printed and most of them are worth very little. However, they have an interesting history. Some have various overprints on them. There are many questions on the Japanese notes with cent and dollar denominations. These have been touted as "invasion" money made for the conquering of the U.S., but they were actually made for Malaya and Burma. ------------------------------ Subject: 2.10) I found a note marked "SPECIMEN" with a serial number of all zeros, what is it? Specimen notes are printed for banks and law enforcement as a reference to identify notes. Most countries have specimen notes where the word "specimen" is printed in the local language. Sometimes the notes are perforated with the word. Specimen notes are often worth more than notes for circulation, but there are exceptions, especially when lots of specimen notes are created for collectors. Specimen notes aren't legal tender so they don't have a face value. ------------------------------ Subject: 2.11) I found a Chinese banknote that is labelled "Hell", what is it? When I first started collecting paper money, I had a Chinese note which I couldn't identify, so I asked a colleague who was from Taiwan. Figuring "Hell" was probably some obscure province in China I asked him where the note came from. After he stopped laughing, he explained to me that a Buddhist tradition is to create paper money which is supposedly legal tender in the Hell afterlife. This paper is then burned so that dead ancestors who might have ended up in Hell would have something to spend. Some people even create paper cars, houses, etc. and burn them so their ancestors can have basic luxuries. Noting that the denomination on the note was one million, my colleague figured there must be severe inflation in Hell. How much are these notes worth? Face value. :-) Some people collect various forms of hell money. ---------------------------------------------------------------------- 3. USA PAPER MONEY ------------------------------ Subject: 3.1) I heard the US is changing its paper money, is this true? Some of it has already changed. The series 1990 (and 1993) 10, 20, 50(?), and 100 dollar notes have had two major security features added. Each has a plastic security thread/ribbon running vertically through the note with writing such as "USA TEN", "USA TWENTY", "USA 100". Also, around the portrait is very very small lettering called microprinting that spells out "The United States of America", which supposedly can't be copied by color copiers (which is not entirely true). The BEP is also looking into really big changes to the US currency, which is on the more distant horizon. There are no plans to change the 5 or 1 dollar bill. Bank Note Reporter has had articles on the status of possible changes and the latest is that any big changes are nowhere near being finalized. Some possible changes are moving the portrait over to one side, adding a watermark, and adding more colors. ------------------------------ Subject: 3.2) What is a National Banknote? After the US Civil War (1865-1935), the US government created charters for private banks to print paper money which was backed by the US Government. There were a very large number of national banks chartered from all over the USA (e.g. Nashville, Tennessee; Key West, Florida; Bismarck, North Dakota; L.A., California) Many people collect "nationals" and the prices have gone up substantially (to around the 150 dollar level on average). ------------------------------ Subject: 3.3) What are Silver Certificates and Gold Certificates? From 1878 through 1957, the US issued Silver Certificates, most of which looked similar to current US paper money. These were backed by silver. In a similar manner, Gold Certificates were issued from 1863 to 1922 and were backed by real gold. ------------------------------ Subject: 3.4) Can you exchange Silver Certificates for real silver? Up until 1968, you could exchange your Silver Certificates for real silver. Nowadays you can't. ------------------------------ Subject: 3.5) I heard that some US notes are stamped HAWAII, why? During World War II, the US wanted to keep Hawaii's paper money isolated from the rest of the USA just in case Japan invaded Hawaii and confiscated the paper. Nowadays, the stamped notes are worth a considerable premium, in the better conditions. ------------------------------ Subject: 3.6) What is fractional currency? During and after the Civil War, the US began to run short on change, so it printed paper money with denominations of less than one dollar. These are generally smaller than other paper and are more affordable than the larger notes of that era. Denominations are 3, 5, 10, 15, 25, and 50 cents. ------------------------------ Subject: 3.7) What is obsolete currency? (broken banknotes, wildcat notes) Before there was National banknotes (1790-1865), many private banks issued their own paper money without US Government backing. Many of these notes become worthless when banks closed. Many of them were counterfeited and altered. When the national bank system was created, privately issued paper money was taxed to the point of being effectively outlawed. Unlike US Government paper which has always remained legal tender, obsolete banknotes are now... obsolete. If you ever think we live in chaotic times rife with unethical opportunistic swindlers, just read about the history of these notes and the 1990s will look tame. Obsolete notes are more affordable than national banknotes and more interesting, as far as I'm concerned. :-) ------------------------------ Subject: 3.8) I heard there is a lot of counterfeit US notes worldwide, is this true? A great number of counterfeit hundred dollar bills are showing up all over the world, but especially in Europe. This is one of the driving forces for changing the US currency. Although the impact of the counterfeit notes on the US economy is tiny, they undermine the worldwide respect for the reliable greenback. Speculation is that these notes are being printed in Iran. In addition to these, color copiers make it easy to make realistic looking counterfeits. See the next section for infomation about copying U.S. banknotes. Counterfeit notes are illegal to own, sell, trade, give away or any other form of disposal. They should be turned in to the Secret Service. You can be jailed for collecting counterfeits. ------------------------------ Subject: 3.9) Is it illegal to copy U.S. paper money? It is illegal to make *any* color copies of any kind of small-size U.S. notes. They may only be copied in black and white and must be larger than 150 percent of the note size, or less than 75 percent of the note size. Large size notes may be copied in color, but the official regulations setting out the specifics HAVE NOT BEEN ISSUED. To be on the safe side, use the 150-75 formula set up for black and white photos. Writing "COPY" or something similar, or copying only a portion of a note does not exempt you from the copying law. The act of copying is the crime. ------------------------------ Subject: 3.10) Is it illegal to use U.S. paper money on products or in advertising? Photographs of notes, or portions of notes may not be used in any form of advertising. The regulations permit their use only for educational purposes. This regulation is currently being violated by a number of major TV networks, computer magazine publishers, telephone card manufacturers and others. Watch for a Secret Service crackdown before long on this. Key chains, watch fobs, calculators, and other products carrying paper money designs are subject to confiscation by the Secret Service. This probably also applies to telephone cards. ------------------------------ Subject: 3.11) Are old US notes still legal tender? As far as I know, every note that has ever been backed by the US Government is still honored by the US Government. Although depositing an 1863 gold certificate for face value would be utterly foolish, it's still legally possible. ------------------------------ Subject: 3.12) Are banknotes with Barr's signature good investments? This single note probably draws more questions than any other that comes to mind, although there is still an amazingly large part of the general population of this country that still doesn't know that "In God We Trust" hasn't "always" appeared on our paper money. Joseph W. Barr served as Treasurer for one month in 1968-1969, his signature appearing only on the 1963-B series of $1 notes. However some 484 million notes were printed with his signature so they are not likely to become scarce in our lifetime. There were 471,040,000 1963-B notes printed with his signature. In addition there were star notes - 3,680,000 for New York, 3,040,000 for Richmond, 2,400,000 for Chicago and 3,040,000 for San Francisco. Millions of the notes are being hoarded by non-collectors acting on rumors, and in today's world they are losing money every day they hold onto one of these notes. Uncirculated notes might bring you a slight premium - if you can find a buyer. ------------------------------ Subject: 3.13) What's the story on the Bank of the United States 1840 $1,000 note with serial number 8894? I can tell you that this note has probably cost more grief, more wasted postage, phone calls, time and energy than just about any other reproduction on the market. I'm sorry to disappoint you, but the Bank of United States $1000 note with serial number 8894 is one of the most copied notes in the world. A method of artificially creating parchment was discovered back in the early 1960s and one firm has produced millions of copies of this and other notes, especially Confederate money. The note has been widely used in advertising and for several years was used on the boxes that one firm shipped blank checks in to their customers. The original of this note is on normal paper, and is in existence, so your copy is worthless. Every one of them has a story, too. "Found in a trunk that had been in the family for several generations," is a popular one. ---------------------------------------------------------------------- 4. WORLD PAPER MONEY ------------------------------ Subject: 4.1) How do I get banknotes from country XYZZY? Your best bet is to go through a dealer or another avid collector. You can also keep whatever is left in your wallet after a trip to another country, but you'll end up with a very limited set of notes in bad condition. Most countries have notes that cost less than 1 or 2 US dollars. Countries with rampant inflation will have a lot of notes from previous years which are very cheap (South America, Yugoslavian countries, Eastern Europe). Dealers get their notes from contacts within the countries who buy CU packs (crisp uncirculated). The world being what it is, often dealers take big losses when contacts in remote countries essentially take the money and run (I've heard of a major dealer who took a big loss in Mongolia recently). Some countries don't allow currency to be taken out of the country, so people have to risk punishment to get the notes (e.g. Mauritania). Doing business wholesale is tricky, but if you travel to a remote part of the world, you can sometimes get dealers to pay you to pick up CU packs. ------------------------------ Subject: 4.2) How do I get banknotes from every country in the world? This is a common way to collect and your best bet is to get a copy of the Standard Catalog of World Paper Money, Volume 2 (General Issues). This way you have a road map of current and past paper money and how much it will cost. Also it allows you to see which notes you really want to have which you wouldn't otherwise know about (e.g. crossed out portrait of the Shah of Iran, Faulkland Islands notes, portrait of Albert Einstein) A good start is to buy a pile of general world notes from a dealer (e.g. 50 different notes for 20 dollars). You can then build on this over time with selected notes. It's probably possible to put together a set of notes from all countries for a few hundred dollars. You can probably cover half of all countries for under a hundred dollars. ------------------------------ Subject: 4.3) What was Operation Bernhardt? During World War II, Germany created a lot of very high quality counterfeits of the British 5 pound note of the time. These were created in German concentration camps under the code name Operation Bernhardt. ------------------------------ Subject: 4.4) What is concentration camp money? During World War II, Germany created currencies for some of the concentration camps. The notes were created by the Jewish prisoners of the camps and are generally high quality. Many people collect these notes for historical reasons and as a reminder of the events. ------------------------------ Subject: 4.5) Does anybody collect Conferate States of America notes? Yes, this is a major area for collectors and many people focus on CSA notes. Lots of them are very affordable. BEWARE, however. There are numerous copies of the Confederate notes, including packets of copies sold at popular National Park battlefields. Many can be identified by the serial numbers alone. [Note that CSA notes are contained within the World paper money section and not the USA paper money section.] ------------------------------ Subject: 4.6) How many countries currently issue paper money? This depends a lot on how you count them. For instance the West African States covers eight countries, each has a unique letter associated with it. Czechoslovakia recently split into two countries, each having their own currency. Lots of former Soviet countries are creating their own currency. The Eastern Carribean dollar covers a lot of little independent islands. Currently, there are around 175 separate countries issuing paper money. There have been many countries which have either disappeared or no longer issue their own money (Biafra, East Germany, Soviet Union, South Viet Nam, Greenland). Sometimes semi-independent governments issue their own paper (Scotland, Jersey, St. Pierre and Michelon). ------------------------------ Subject: 4.7) Are there really plastic banknotes? Note Printing Australia has developed the technology for creating plastic "paper money". Most of the notes are smooth clear plastic with intense and high resolution coloring. They usually have a small see-through window with a watermark-like design in it. The Australian 10 dollar note from 1988 actually contains a hologram (but not a very good one). Lots of people don't like plastic notes because of they can be difficult to handle. See section on dealers for address of Note Printing Australia. There are also Tyvek plastic banknotes (I've seen one from Haiti) which are a lot more paperlike in texture. Tyvek is the kind of plastic used in those slippery fiberous plastic indestructable Federal Express envelopes. Some countries with plastic banknotes: Australia (4), Singapore, Western Samoa (2), Papua New Guinea, Kuwait, Indonesia ------------------------------ Subject: 4.8) What is a military issue or Military Payment Certificate? Military Payment Certificates are the US version of the more general military issues. These are issued by governments for use by military personnel who are stationed in an area outside the jurisdiction of the government. The US issues are intended to limit black market economies. ------------------------------ Subject: 4.9) What is the highest denomination note ever created or issued? During severe hyperinflation in Hungary during and after World War II, the Hungarian government created the 1 milliard B. pengo note. It was never issued, however. One milliard B. pengo corresponds to a denomination of... 1,000,000,000,000,000,000,000 pengo To give you an idea of the magnitude of this number, if these were US dollars, it would be enough for every human on Earth to have over 200 billion dollars each! The highest denomination issued was the next lower note which was 100,000,000 B. pengo note (only 20 billion dollars each :-).