Month: November 2012

Fancy serial number notes come in all shapes, sizes, combinations, and varieties. The degree to which a collector pursues the rarest notes is often a matter of taste: while a serial #00000008 note would catch the attention of high end collectors, some people are more than content with a serial #00000333, or even a birth year #00001950 that would be a less expensive investment.

Generally speaking, the highest value fancy serial number notes are those which are printed ONCE during a specific block run. One example is the true ladder serial number, one of the most sought after rarities in the paper money hobby.

First things first, “Specimen” notes do not count as true ladders even though they might have a perfect 12345678 or 234567890 serial number. The pattern of digits is right, but the purpose of them is different. All numbers are shown in ascending order on a “Specimen” to give government officials an example of the appearance of all possible digits for comparison purposes to potentially counterfeit notes. Also, if a Specimen happens to get mixed into a group of regular notes, it would be relatively easy to spot during a search effort because perfect up ladder notes are exceedingly rare. It would stick out like a sore thumb among the blur of random serial numbers.

What qualifies as a true ladder note? Purists would say a serial number of 12345678 is the true definition of a ladder note, but some other serial numbers exist that still fit the general definition of a ladder note:

Ladder Serial Number Types:

1. 12345678
2. 23456789
3. 01234567
4. 12345670
5. 87654321
6. 98765432

Source: USARare.com’s Ladder Serial Number Database

Ladder notes are actually discovered more frequently than serial #1 notes. Many times, Treasury, Bureau of Engraving and Printing, or Commercial banking officials will grab a serial #1 out of a bank pack before it has a chance to circulate, making them difficult to acquire unless you have inside contacts. Ladder notes aren’t usually pulled from bank packs because they get automatically stacked, packed, and shipped to banks for general circulation. Digging through thousands of bricks of currency at the B.E.P. prior to shipping a pile of cash for the 12345678 serial number wouldn’t be impossible, but would be against best practices and inventory protocols. Grabbing a #1 note is one thing, but breaking open packs of currency for the proverbial needle in a haystack ladder note would be messy and inefficient. As a practical matter, that’s why ladders appear in general circulation and eventually make their way into the hands of a collector. You could have one in your pocket right now and not even know it!

The best list of all ladder notes in existence we could find was at USARare.com, who advertises their inventory on PaperMoneyAuction.com: USARare.com’s Ladder Serial Number Database – click here. Included in their list are each note’s series year, denomination, type, ladder serial number, block if applicable, a symbolic representation of the ladder serial type, note grade, and last known note owner. It’s a fascinating list of notes that reads like a “Who’s Who” of fancy serial number collecting. The most common names on the list include USARare, Daniel Wishnasky (the original author of the ladder list), and Mike Abramson Currency.

Let’s have a look at some of the most impressive notes on this list!

The only known perfect set of ladder notes – Large Size or Small Size – in existence

The first known perfect up ladder Small Size Note, Fr. 1600 1928 $1 Silver Certificate

The latest addition to the ladder list: A 2004 $20 note perfect up ladder, grading PMG Superb Gem Uncirculated 69 (AMAZING!) – Check your wallets!

All of these notes would go for more than $20,000 each if they went to auction, possibly more than $50,000 depending on who wants them bad enough.

Small time collectors, take heart: if you’re flexible on the definition of a ladder note, there are many examples of serial number 00001234, 00008765, 01235600, or 09870000 notes in various collecting circles available for purchase. Save up and get one for your collection!

Are small size $10 Silver Certificates rare? Generally speaking, it’s not “rare” to find a $10 Silver Certificate. In fact, some are readily available for purchase on eBay.com and at major currency auctions. The most common examples of this note bear the series of 1953, 1953A, or 1953B. These were among the last Silver Certificates printed by the Bureau of Engraving and Printing, and are well within the reach of most paper money collectors.

Once you start to look backwards at the first small size issues of $10 Silver Certificates, however, a host of rarities begin to surface. In fact, the $10 Silver Certificate denomination has some of the most sought after small size note varieties. Add in the series of 1934 and 1934A North Africa Silver Certificates, and you have a treasure trove of rarities to collect.

The story begins with Fr. 1700 1933 $10 Silver Certificate with signatures of Julian and Woodin; and no, the “1933” is not a typo meant for 1934. This was the last series to bear Secretary of the Treasury W. H. Woodin’s signature. He retired shortly after the notes began circulating publicly.

Why were they series of 1933? Originally, the intention of the government was to print these notes with an obligation stating they could be redeemed in silver “coin”. The notes went into production in 1933, but printing was abruptly halted when the administration decided to change its policy on silver (this information from the Standard Guide to Small-Size U.S. Paper Money 1928 to Date by John Schwartz and Scott Lindquist, 10th edition, page 156). 216,000 series of 1933 notes were printed, with 184,000 making it into circulation. There are star notes on this series, but they are extremely rare: it is estimated less than 5 are known. These star notes are so rare that Heritage Auctions hasn’t sold one at a public auction in the last 10 years (according to archived results), although it’s possible they may have brokered private sales between high end collectors.

A beat up 1933 non-star Silver Certificate in Fine condition sold at Heritage for over $2,000. So you don’t have to see stars 🙂 on this note to have a valuable find on your hands.

What about the series of 1933A? The fate of these notes is subject to debate. Once Woodin retired, Henry Morgenthau, Jr.’s signature had to be used. A total of 336,000 notes were printed, but NONE are known to exist. Whether or not they actually circulated isn’t clear. According to Schwartz and Lindquist:

“In November 1935, 368,000 $10.00 Silver Certificates were destroyed. Reports indicate that 156,000 Series 1933 and 60,000 Series 1933A were released and that the balance of 60,000 1933 and 1933A regular notes were destroyed.”

Source: Standard Guide to Small-Size U.S. Paper Money 1928 to Date by John Schwartz and Scott Lindquist, 10th edition, page 156.

Since no 1933A notes have ever surfaced, most people believe the government destroyed all the 1933A during the 1935 destruction of notes obligated with silver “coin”. A discovery of a 1933A $10 Silver Certificate – even if it was poorly preserved – would be considered a MAJOR numismatic event. Its value would most likely exceed $100,000. Schwartz and Lindquist write that a 12 subject sheet of 1933A $10 Silver Certificates do exist in proof form. The notes can be viewed at the Smithsonian Archives or at a major paper money show when the Bureau of Engraving and Printing is in attendance.

“No one has ever verified the existence of an issued note” (Schwartz and Lindquist, 156).

Despite the rise of the information age, there are still many numismatic mysteries yet to be solved. We know Fr. 1700 1933 $10 Silver Certificates exist, but the series of 1933A remains as a question mark in the history books. One would think the government would have records indicating whether or not these notes made their way into public hands, but no such information exists.

Somewhere, buried deep within the archives of the Bureau of Engraving Printing, someone hastily wrote a footnote about these notes and what actually happened to them. If long lost records are eventually digitized, this mystery might get solved.

Until then, the series of 1933 remains as the “King of Silver Certificates”, and the series of 1933A remains a numismatic mystery worthy of mention in any major numismatic museum display!