The Frigate Constitution on the 1918 $2 Federal Reserve Bank Note: Naval History Meets Currency Art

Pick up a 1918 Series $2 Federal Reserve Bank Note and turn it over. There, engraved with the precision that only the Bureau of Engraving and Printing could achieve in the early twentieth century, is the USS Constitution charging through open seas under a full press of canvas. It is a striking image, arguably the most dramatic reverse design ever applied to a small-size or large-size Federal Reserve note. But why a warship? Why this particular ship? And why does the choice matter so much to collectors a century later? The answers reveal a fascinating intersection of naval mythology, wartime patriotism, and Treasury design philosophy that gives these notes a depth far beyond their face value.

What Exactly Is a Federal Reserve Bank Note?

Before examining the Constitution vignette itself, it helps to understand exactly what a Federal Reserve Bank Note is, because collectors sometimes confuse these with Federal Reserve Notes, which are the direct ancestors of the bills in your wallet today. Federal Reserve Bank Notes were obligations of the individual Federal Reserve Banks rather than of the United States government as a whole. They were backed by commercial paper and government bonds deposited with the Treasury, and they carried the imprint of a specific issuing bank, such as the Federal Reserve Bank of Boston or the Federal Reserve Bank of San Francisco.

The 1918 series was issued under the authority of the Federal Reserve Act during World War I, a period when the Treasury needed flexible currency instruments to manage wartime financial pressures. These notes were printed in $1, $2, $5, $10, $20, $50, and $100 denominations, though the $2 and $1 are by far the most collected today because of their distinctive vignettes. The $2 notes bear a blue Treasury seal on the right side of the face, a blue district seal on the left, and the name of the issuing Federal Reserve Bank prominently displayed. Twelve districts issued them, from Boston (District 1) through San Francisco (District 12), giving collectors a natural framework for building a complete set by district.

The Vignette: USS Constitution Under Full Sail

The reverse design is dominated by a central engraved vignette of the USS Constitution, the 44-gun heavy frigate launched in 1797 at Edmund Hartt’s shipyard in Boston, Massachusetts. The engraving depicts the ship under full sail in a moderate sea, her gun ports closed, her bow cutting through white-capped waves. The Bureau of Engraving and Printing almost certainly based this design on earlier patriotic prints and illustrations that had been circulating in popular culture since at least the mid-nineteenth century. The ship is shown from a slight starboard quarter view, which gives the engraver maximum opportunity to display her sail plan and hull lines simultaneously.

The choice of the Constitution was not accidental or arbitrary. By 1918, “Old Ironsides” had been a symbol of American naval invincibility for over a century. Her victories over HMS Guerriere (August 19, 1812) and HMS Java (December 29, 1812) during the War of 1812 had made her the most celebrated warship in American history. Oliver Wendell Holmes’s 1830 poem “Old Ironsides,” written to protest a Navy proposal to scrap the aging vessel, had cemented her place in the national consciousness. When the United States entered World War I in April 1917, invoking the Constitution on a circulating banknote was a deliberate act of patriotic messaging. Citizens handling these notes in 1918 and 1919 would have immediately recognized the image and its connotations of American fighting spirit.

Face Design: Signatures, Seals, and District Identification

The face of the 1918 $2 FRBN features a portrait of Thomas Jefferson at center, consistent with the $2 denomination’s long association with Jefferson’s image. The signatures on the face are those of the local Federal Reserve Bank officers, specifically the bank’s Cashier and Governor (later redesignated as President), combined with the printed facsimile signatures of the U.S. Treasurer and the Secretary of the Treasury. Multiple signature combinations exist across the twelve districts, and these combinations are cataloged individually in the Friedberg reference.

The Friedberg numbers for the complete series run from Fr. 750 (Boston) through Fr. 761 (San Francisco), one number per district. However, within those Friedberg numbers, collectors and specialized references such as the Teehee-Burke signature combination notes and the Elliott-Burke notes recognize additional varieties. The two primary Treasury signature combinations found on 1918 $2 FRBNs are:

• Teehee-Burke: Signatures of Register of the Treasury Houston B. Teehee and Treasurer John Burke, used on earlier printings.
• Elliott-Burke: Signatures of Acting Register Harley V. Elliott and Treasurer John Burke, appearing on later printings from approximately 1920 onward.

Some districts issued notes under both signature combinations, while others are known only with one. The district seal, printed in blue on the left side of the face, includes a letter and number identifying the district: A-1 for Boston, B-2 for New York, C-3 for Philadelphia, D-4 for Cleveland, E-5 for Richmond, F-6 for Atlanta, G-7 for Chicago, H-8 for St. Louis, I-9 for Minneapolis, J-10 for Kansas City, K-11 for Dallas, and L-12 for San Francisco.

Print Runs, Survival Rates, and District Scarcity

Total production of 1918 $2 Federal Reserve Bank Notes across all twelve districts ran to several million notes, but survival rates vary enormously by district. The New York (B) and Chicago (G) districts had the largest print runs reflecting their status as major commercial centers, while the Minneapolis (I) and Dallas (K) districts had notably smaller runs. Compounding this, notes from smaller districts saw proportionally higher circulation rates relative to their print runs, meaning they wore out faster and fewer survived in collectible grades.

Contemporary auction data from major houses including Heritage Auctions, Stack’s Bowers, and Lyn Knight indicate that a complete district set in consistent VF condition now requires a budget of $3,000 to $6,000 or more, with Minneapolis, Dallas, and Atlanta examples accounting for a disproportionate share of that total. Gem examples (PMG 65 or better, PCGS Currency 65 or better) of any district are genuinely scarce, but Atlanta and Minneapolis in gem condition are legitimately rare and can bring $2,000 to $5,000 individually at auction when they appear.

Grading Considerations Specific to This Issue

The 1918 $2 FRBN presents some particular grading challenges. First, the paper quality used in 1918 was excellent by the standards of the era, a high-rag-content stock that retains its crispness well when notes are found unfolded. However, these notes circulated heavily during and after World War I, and the majority of survivors grade in the Fine to Very Fine range. Second, the blue ink used for the seals and serial numbers is prone to light fading when notes are stored improperly or exposed to light over long periods. A note that appears VF by paper standards might be downgraded for ink fading. Third, corner folds and center folds are almost universal in circulated examples. A note with only light corner creases and a single center fold, with no tears, stains, or missing paper, will typically grade in the Extremely Fine range.

Both PMG (Paper Money Guaranty) and PCGS Currency are the accepted third-party grading services for this series. Collectors building a district set should strongly consider having key district notes slabbed, both for authentication and to establish a consistent grading baseline across the set. Raw notes are fine for common districts like New York and Chicago, but for Atlanta, Minneapolis, or Dallas, professional grading adds significant confidence and resale value.

The Naval History Connection: Why It Resonates in 1918

It is worth dwelling a moment longer on the patriotic context of the Constitution vignette in 1918, because that context directly affects how these notes were received in circulation and how they have been collected ever since. The United States had entered World War I on April 6, 1917, and by 1918 the country was fully engaged in the war effort. The Navy was expanding rapidly, constructing destroyers, cruisers, and the first generation of American aircraft carriers. Against this backdrop, the image of the Constitution on a circulating $2 note served as a daily reminder of American naval tradition and fighting capability.

The Treasury and the Bureau of Engraving and Printing had a long tradition of using patriotic imagery on currency, but the choice of the Constitution was particularly apt for 1918 because the ship herself was still technically in commission with the U.S. Navy, though she had been used primarily as a receiving ship and then as a training vessel for decades. She would undergo her famous restoration in the 1920s, funded in part by a national campaign that included the sale of patriotic souvenirs. The timing of the 1918 FRBN series thus places these notes at a pivotal moment in the Constitution’s own history, bridging her Civil War-era service and her twentieth-century restoration as a national monument.

Building a Complete District Set

A complete set of 1918 $2 Federal Reserve Bank Notes by district, one note per district, is a realistic collecting goal that many intermediate collectors pursue. The strategy most seasoned collectors recommend is to acquire the easy districts first (New York, Chicago, Philadelphia, Cleveland) in the grade level you are targeting, then use the funds from potential upgrades or duplicates to pursue the key dates. Here is a practical roadmap:

• Common districts in VF-XF: New York, Chicago, Philadelphia, Cleveland, Richmond each trade regularly at $75 to $200.
• Moderate districts in VF-XF: Boston, Kansas City, St. Louis, San Francisco range from $150 to $400.
• Scarce districts in VF-XF: Atlanta and Minneapolis regularly bring $400 to $900 in properly graded VF-XF.
• Key district: Dallas in any grade above Fine is genuinely difficult to find and typically commands $600 to $1,500 in VF condition.

For collectors who want to go deeper, building by signature combination (Teehee-Burke vs. Elliott-Burke) across all twelve districts nearly doubles the challenge and the number of notes required. Some district-and-signature combinations are extremely rare in high grade. The Friedberg catalog and the Standard Catalog of United States Paper Money (Schwartz and Lindquist) are the essential references for confirming which combinations exist for each district.

Conclusion: A Note Worth Collecting on Multiple Levels

The 1918 $2 Federal Reserve Bank Note with the Constitution vignette rewards collectors on every level of engagement. For the newcomer, it offers an accessible entry point into large-size currency collecting with the common districts available at modest prices and a visually stunning design that is easy to appreciate and display. For the intermediate collector, the twelve-district set provides a structured goal with clear milestones and a satisfying range of difficulty. For the advanced specialist, the interplay of signature combinations, district varieties, and condition rarity creates a collecting challenge that can occupy years of focused pursuit.

Beyond the collecting mechanics, these notes carry genuine historical weight. They were issued during one of the most consequential periods in American history, decorated with the image of the nation’s most beloved warship, and distributed through the brand-new Federal Reserve System that had been established just five years earlier. Every one of these notes that survived a century of wallets, drawers, and attic boxes is a small artifact of that moment. The Constitution on the reverse is not just a pretty picture. It is a statement about what Americans in 1918 believed their nation stood for, engraved in steel and printed in ink that still speaks clearly to anyone willing to look closely enough.