Confederate currency, issued by the secessionist Confederate States of America between 1861 and 1865, were more than just banknotes – they were economic instruments of war. Today, these notes are valued as tangible relics of a defining chapter in American history. While no longer redeemable as legal tender, Confederate currency is prized by collectors who appreciate their scarcity, design, and historical significance.
This in-depth guide, informed by numismatic scholarship and market expertise, examines the factors that determine Confederate note values, offers strategies for building a collection, and explores the nuanced history behind this intriguing corner of the currency market.
Historical Context: Confederate Currency and the Civil War Economy
To grasp the collectible appeal of Confederate notes, one must first understand their economic and historical context. In early 1861, as Southern states began breaking away from the Union, the newly formed Confederate government moved swiftly to establish its own currency. This was both a practical necessity to finance the war effort and a symbolic assertion of Confederate sovereignty and legitimacy.
The first Confederate notes, known as the "Montgomery Issue" after the Alabama capital where the Confederate government initially convened, were authorized in March 1861 and entered circulation the following month. These notes, issued in denominations from $50 to $1,000, featured intricate engraved designs and were initially backed by deposits of gold and silver. However, as the war escalated and the Confederate government‘s expenses mounted, subsequent issues became increasingly unreliable.
Over the course of the Civil War, the Confederate government authorized a total of 72 different series of currency, encompassing a wide range of denominations, designs, and issuance locations. As Confederate fortunes waned, the notes‘ backing by precious metals was replaced by a promise of redemption six months after the war concluded – a pledge that would ultimately go unfulfilled.
Inflation quickly eroded the purchasing power of Confederate currency. By 1863, it took $10 Confederate to buy $1 in gold. A year later, that ratio ballooned to 40:1. In the final months of the war, Confederate notes were little more than worthless scraps of paper. An 1864 pamphlet wryly observed that it was "dangerous to hold Confederate money" since it could "give you the itch."
When the Civil War ended in 1865 with a Union victory, Confederate currency was officially repudiated and demonetized. Holders of Confederate notes were unable to redeem them at any fraction of their face value. Roughly $1.7 billion worth of notes were left in circulation after the Confederacy‘s collapse, but they could not be spent outside the former Southern states and even there were worth next to nothing. The once ubiquitous Confederate notes largely ended up in the trash.
Survival and Scarcity: The Rarity of Confederate Notes
The mass repudiation of Confederate currency after the Civil War is a key factor in explaining their rarity and value today. Since the notes were worthless in the post-war economy, many people simply discarded them. Vast quantities were deliberately burned to provide fuel or destroyed in other ways. Those that did survive often did so by chance or as mementos tucked away in attics and archives.
As a result, some Confederate note varieties are extremely scarce, especially in higher grades. While later series notes were often printed in the millions, high-denomination notes from the first "Montgomery Issue" of 1861 had print runs of just 14,000 to 30,000. Of those, only a few hundred examples are believed to still exist, and far fewer remain in crisp, uncirculated condition.
Specific rarities in the Confederate series include:
- The 1861 $50 Montgomery note (T-10), with just 6,000 printed and fewer than 100 known survivors
- The 1861 "Indian Princess" $5 note (T-35), featuring a portrait of Pocahontas
- High-denomination 1861 Montgomery notes like the $500 (T-2) and $1000 (T-1)
- The 1864 "Havana Issue" $500 note (T-64), printed in Cuba in an edition of just 1,500
- Specimen and proof impressions used for design approval and not intended for circulation
Doug Shull, president of Confederate currency dealer CSA Galleries, estimates that fewer than 1% of all Confederate notes printed between 1861 and 1865 survive in any condition today. "There are probably more 1804 silver dollars out there than $1000 Montgomery notes," he observes.
Grading and Condition: Key Factors in Value
As with all collectible currency, condition plays a paramount role in determining the value of Confederate notes. Since these notes circulated widely and were printed on poor-quality paper, finding examples in pristine condition can be challenging.
Confederate notes are graded on the industry-standard 70-point Sheldon scale used for all U.S. currency. Uncirculated (New) notes are those graded 60-70, while 35-58 designates a lightly circulated extremely fine note. Any note graded below 12 is generally considered little better than a filler or "rag."
Reputable third-party grading services like PCGS Currency and PMG assess Confederate notes for both authenticity and condition. Having a note certified and encapsulated by these firms provides assurance to collectors and can boost resale value. These "slabs" also protect the delicate notes from further wear.
The premium for Confederate notes in higher grades is substantial. To illustrate:
- An 1864 $10 (T-68) in Very Fine (VF-30) condition retails for around $200
- The same note in Choice Uncirculated (CU-64) condition can fetch over $3,000
- A "Montgomery Issue" $1000 (T-1) in VF condition might bring $25,000
- But a Choice CU example graded 64 by PCGS Currency sold for $96,000 in 2014
"The jump in value for Confederate notes in Uncirculated condition is astounding," remarks Harrison Ellenberg, a specialist at Heritage Auctions. "For many types, an Uncirculated example may be worth 10 to 20 times a VF note."
Designs and Variations: Cataloging Confederate Types
Beyond rarity and condition, Confederate note values are also impacted by their designs and issuance varieties. Many collectors pursue "type notes," seeking to own an example of each major design across the Confederate series. Guides like Criswell‘s Comprehensive Catalog of Confederate Paper Money and Grover Criswell‘s Confederate and Southern States Currency serve as essential references for navigating the different designs.
Some of the most iconic and sought-after Confederate currency designs include:
- The 1861 $50 "Portrait" note (T-14) featuring a portrait of Confederate President Jefferson Davis
- The 1861 $100 "Slaves" note (T-41) depicting enslaved laborers hoeing cotton
- "Minerva and train" $10 notes issued in 1863 (T-59) and 1864 (T-68)
- The allegorical "Sailor" and "Cavalier" motifs on $50 and $100 notes from 1862-1863
- 1864 "Stonewall Jackson" $500 note (T-64) honoring the late Confederate general
- Various "Blackback" issues of 1864 with blank backs to save ink
Varieties within major types, such as different plate positions, signature combinations, and printing errors, can also drive collector demand and value. Military-issue notes payable to specific regiments or locales and advertising notes with merchant overprints are especially prized.
Counterfeits and Facsimiles: Navigating Authenticity
Given the potential value of rare Confederate notes, the market is unfortunately plagued by counterfeits and replicas that can trap unwary collectors. Period forgeries circulated even during the Civil War, and more have been produced in recent decades to deceive or as outright facsimiles.
Determining the authenticity of Confederate notes requires careful study of the paper, inks, printing techniques, and designs. Notes that are the "wrong size," have suspiciously bright colors, or lack the characteristic plate flaws of genuine examples are red flags.
Collectors should be especially wary of Internet-based sellers offering notes authenticated by unknown entities at "too-good-to-be-true" prices. The only surefire way to guarantee authenticity is to purchase notes graded by PCGS Currency or PMG or from reputable dealers who offer lifetime guarantees.
Some replica Confederate notes are collectible in their own right if identified as such. 1870s-era facsimiles printed by New York lithographers, often in sets or sheets, have a following among collectors interested in Confederate financial history.
Market Dynamics: Collector Demand and Pricing
Collector demand for Confederate paper money has never been higher according to dealer and pricing expert Pierre Fricke. "In the past few decades, Confederate currency has emerged from a niche collectible to an area of significant mainstream interest," he says.
Fricke estimates the total value of the Confederate currency market at over $50 million annually, with hundreds of active specialist collectors and thousands more generalists. Major auction houses like Heritage and Stacks Bowers routinely feature Confederate notes in their currency sales, and dedicated online marketplaces have emerged.
Pricing for Confederate notes depends on the interplay of rarity, condition, and design as outlined above. Fricke‘s price guide, Collecting Confederate Paper Money (now in its 10th edition), is considered the standard reference on Confederate note market values. The Criswell reference guides also include retail price estimates for major types in various grades.
Some example current market values for Confederate notes in Very Fine condition:
| Type | Denomination | Price |
|---|---|---|
| T-1 | $1000 1861 Montgomery Issue | $35,000 |
| T-27 | $10 1861 "Miners and Milkmaid" | $3,000 |
| T-56 | $100 1863 "Lucy Pickens" portrait | $750 |
| T-64 | $500 1864 "Stonewall Jackson" | $6,000 |
| T-69 | $5 1864 "Jefferson Davis" portrait | $200 |
Of course, rarer varieties in superior condition routinely surpass these "type" prices. A T-27 "Miners and Milkmaid" $10 note in PCGS CU-63 fetched $38,400 at a Jan. 2023 Heritage auction, more than 12x its VF value.
Building a Collection: Strategies and Recommendations
Assembling a meaningful collection of Confederate paper money requires patience, discipline, and specialization. While "trophy" rarities like T-1 $1000 Montgomery notes or high-grade "Havanas" will always be the pinnacle, collectors can build satisfying collections at a range of budgets by focusing on specific series or themes.
One popular approach is to collect by denomination, pursuing a representative example of each Confederate bill from $0.50 to $1000. Others target a particular series like the 1864 "Blackbacks" or seek to complete a full 72-note Criswell type set.
New collectors are advised to buy the best condition notes they can afford and to focus on rarity over size. An Extremely Fine T-30 1861 $10 is a better value than a ragged T-44 1862 $1 in terms of scarcity and quality.
Veteran collectors and dealers also recommend participating in Confederate currency collector clubs and specialty organizations like the Society of Paper Money Collectors (SPMC) and Professional Currency Dealers Association (PCDA). These groups offer educational resources, opportunities to network with other collectors, and access to member-only events and auctions.
When buying Confederate notes, especially higher-end examples, collectors should insist on notes graded by PCGS Currency or PMG. These firms not only certify authenticity but also provide a consistent baseline for evaluating condition. For ungraded raw notes, be sure to deal with reputable sellers who guarantee their notes as genuine.
Once acquired, collectors must also be mindful of proper storage and preservation. Confederate notes should be kept in acid-free holders or albums and stored in a cool, dry environment away from direct sunlight. Unprotected exposure to the elements can quickly degrade these notes which are printed on fragile, porous paper. Many collectors use inert plastic holders or Mylar sleeves to protect their notes while allowing for easy display and access.
Conclusion: The Enduring Appeal of Confederate Currency
More than a century and a half after their wartime circulation, Confederate banknotes remain compelling and valuable collectibles. Their appeal extends beyond their historical significance as artifacts of America‘s bloodiest conflict. These notes are also objets d‘art – miniature time capsules showcasing intricate engraving, evocative vignettes, and the people and ideals of the Confederate South.
At the same time, the iconography celebrated on many Confederate note designs, from enslaved field hands to portraits of Confederate heroes, is a stark reminder of the painful history and troubling ideology behind the Southern cause. Modern collectors must grapple with this complex legacy and the notes‘ dual identity as both historical documents and, in some cases, relics of a racist enterprise.
Despite (or perhaps because of) these fraught associations, the market for Confederate paper money is more active than ever. Driven by their undeniable rarity, aesthetic beauty, and sheer curiosity factor, Confederate notes attract a growing base of dedicated collectors. While few can hope to land a five-figure "Montgomery Issue" rarity, the diversity of the Confederate series means that collectors of all means can participate in this fascinating slice of financial history.
Whether pursued as a hardcore specialty or a casual sideline, Confederate currency is an endlessly interesting field that combines the thrill of the hunt with the satisfaction of preserving and interpreting the past. For those willing to navigate the pitfalls of a marketplace complicated by scarcity, counterfeits, and controversy, collecting Confederate notes offers rich rewards – both intellectual and financial. With careful study and conscientious acquisition, these fragments of the "Lost Cause" live on as tangible reminders of the turbulent history they once fueled.
