| Fr # | 16c |
| Year | 1862 |
| Denomination | $1.00 |
| Series | Legal Tender |
| Serial # | 40134 |
| Grade | PMG 64 Exceptional Paper Quality |
| Comments | Exceptional Paper Quality |
| PMG # | 1993382-001 |
| PMC Category | Gold |
| Estimated Value | $4,950.00 |
Ranked #31 in the 100 Greatest American Currency Notes compiled by Bowers and Sundman, Legal Tender Notes, typically labeled “United States Note,” were introduced during the Civil War out of necessity. After gold coins vanished from circulation in late 1861, the government needed a widely accepted paper currency to replace gold-backed Demand Notes. With war costs rapidly escalating and coin reserves dwindling, Treasury Secretary Salmon P. Chase, despite his reservations, authorized the issuance of Legal Tender Notes.
First dated March 10, 1862, these notes were initially released in denominations from $5 to $1,000, with $1 and $2 notes added on August 1, 1862. Though not redeemable in gold or silver, they were accepted in commerce and for paying public debts. Lower denominations—$1 to $20—saw the most use in everyday transactions.