Pick up a stack of raw, ungraded antique currency at any major show and you will almost certainly encounter at least one note with ink writing on it. Sometimes it is a careful merchant signature on an 1860s National Bank Note. Sometimes it is a child’s scrawl across the face of a 1935 Silver Certificate. Sometimes it is a date, an account number, or a name penned in a careful Victorian hand across the reverse of a Lazy Deuce. Whether that notation elevates the note or destroys its grade depends on a surprising number of variables, and the difference between a “net” grade and a straight grade can translate to hundreds or even thousands of dollars in collector value.
Understanding the Framework: What Graders Actually Look For
Before diving into specific cases, it helps to understand the philosophical framework that grading services apply. Both PMG (Paper Money Guaranty) and PCGS Currency treat manuscript notations as potential impairments under their net grading policies, but neither service applies a blanket rule. The critical question is always the same: does this writing represent a legitimate period use of the note, or does it represent damage inflicted on the note after its useful life as currency?
PMG’s published standards note that “cancellations, writing, and other impairments” will result in a net grade and a qualifier on the label. The qualifier most commonly seen for ink writing is simply “Writing” or “Ink” but the grader’s internal assessment of how and when that writing occurred shapes the grade reduction applied. A note that receives a PMG 35 Net might have dropped from an intrinsic VF 35 to an effective grade that collectors treat more like a VF 20 in terms of market value, even though the label reads 35 Net.
PCGS Currency uses a similar net grading approach and will note ink writing on the certification label. Their graders are trained to evaluate the ink’s age, placement, content, and relationship to the note’s type and era. Neither service publishes a rigid point-deduction matrix for writing, which is intentional. The impact of a signature on the back of an 1862 Legal Tender Note is simply not comparable to a ballpoint pen inscription across the face portrait of a 1957 Silver Certificate.
When Period Writing Carries Historical Weight
The most valuable category of manuscript notations is what experienced collectors call “period ink” writing, meaning ink applied contemporaneously with the note’s circulation, in a manner consistent with 19th or early 20th century commercial or personal practice.
Counterfeit Detection Marks
One of the most fascinating categories involves the ink notations left by bank tellers, merchants, and counterfeit detectors during the chaotic era of State Bank Notes, roughly 1836 through 1866. During this period, thousands of different bank issues circulated simultaneously, and the Hodges’ Bank Note Detector, Thompson’s Bank Note Reporter, and similar publications trained merchants to mark suspect notes. A note bearing period ink in the form of an “X” through the portrait, or a teller’s initials on the reverse, was almost certainly checked against a detector guide and passed as genuine. For collectors of obsolete currency, these marks are part of the note’s authentic commercial story.
On an 1850s obsolete note from a Southern state bank, a period counterfeit detection mark on the reverse will generally not cause a significant grade reduction at major services. Graders at PMG have confirmed informally at convention seminars that such marks are evaluated in context. A detection mark on a rare Tennessee or Alabama issue might cost the note half a grade point at most, while the provenance it implies can actually support a stronger market price among specialized collectors.
If you acquire a pre-Civil War obsolete note or State Bank Note with period ink markings, research the specific bank issue before submitting. Notes from banks that failed during the Panic of 1857 or during the Civil War with period notations documenting their redemption history can sometimes carry a premium with specialist collectors of Southern currency or obsolete notes, even after a net grade is assigned.
Merchant and Payee Endorsements on Large-Size Nationals
National Bank Notes issued between 1863 and 1935 frequently circulated as commercial instruments, and it was standard practice in the 19th and early 20th centuries for payees to endorse notes on the reverse, much as one endorses a check today. A Series 1882 Brown Back $5 National Bank Note (Friedberg 467-476a, depending on the issuing bank) with a period ink endorsement on the reverse is showing you exactly how it was used: as payment in a commercial transaction.
Graders at both major services give considerable weight to the location and nature of these endorsements. A neat, period-ink endorsement signature in the lower right quadrant of the reverse of a large-size National will often result in no net grade at all, or at worst a one-point reduction, particularly if the note grades Fine 15 or below, where such use is expected. The same endorsement centered across the face of the note would be treated far more harshly.
Territorial and Pioneer Currency Notations
Some of the most historically significant period writing appears on currency from the territorial West. Notes circulating in pre-statehood Nevada, Arizona, Colorado, or Dakota Territory sometimes carry ink notations documenting their use in mining camp transactions, land purchases, or assay office exchanges. A $1 1862 Legal Tender Note (Fr. 16) with an 1864 date notation and a Colorado mining district notation in period ink is a genuine historical artifact. Specialist collectors of Western Americana currency actively seek these pieces, and a PMG or PCGS net grade with a notation describing the writing does not necessarily suppress the price.
When Writing Destroys the Grade
The other end of the spectrum involves writing that graders treat as straightforward damage with no mitigating historical context.
Modern Pen and Ballpoint Notations
The invention and widespread adoption of the ballpoint pen after 1943 created a new category of currency damage that has no redemptive numismatic quality. A ballpoint pen inscription on any note, regardless of the note’s age or rarity, is an unambiguous modern defect. A 1928B $100 Federal Reserve Note (Fr. 2151) is a scarce note with collector values well above $1,000 in VF condition. If someone used a ballpoint pen to write a phone number across the face, that note is not a net VF. It is a heavily impaired note that might struggle to bring Fine retail prices regardless of its underlying paper quality and embossing.
Graders are trained to recognize ballpoint ink under magnification. Ballpoint ink sits on top of the paper surface differently than dip pen or quill ink, which tends to wick slightly into the paper fibers. Felt-tip marker ink presents its own obvious problems and will result in the most severe grade reductions of any ink notation type.
Never attempt to remove ink writing from a banknote using solvents, erasers, or any chemical treatment. Not only will this almost certainly make the damage worse and introduce chemical contamination detectable by graders, but PMG and PCGS both consider evidence of cleaning or alteration a separate impairment category that can result in a “Details” grade rather than a net grade, which carries an even heavier market penalty in most cases.
Face Notations on Small-Size Notes
Small-size notes, issued from 1928 onward, are a particularly painful category for writing damage. These notes are far more common than their large-size predecessors as a class, and collectors generally expect high-grade examples to be pristine. Any ink writing on the face of a small-size note, regardless of its apparent age, will trigger a net grade and a meaningful reduction. A 1934A $500 Federal Reserve Note (Fr. 2202) might grade PMG 45 Net Writing if it carries a period banker’s notation, but that net grade will almost certainly suppress its realized price well below the market for a straight 40 EPQ example.
The “Canceled” Problem: Pen Cancellations
Bank-canceled notes present a special challenge. Throughout the 19th and early 20th centuries, banks routinely canceled notes by cutting, perforating, or writing across them to prevent reuse. Pen-canceled notes, where a teller or bank officer drew lines or wrote “CANCELLED” across the face in ink, are genuine artifacts of banking practice, but they are among the most heavily penalized types of written notation in modern grading.
A pen-canceled 1882 Gold Certificate (Fr. 1193-1199 series) is historically interesting and relatively scarce in any form, but graders will still apply a significant net reduction, typically two to three full grade points in the Fine to Extremely Fine range. The market follows this logic: canceled notes were explicitly withdrawn from commerce, and their collectibility is as specialized pieces of banking history rather than as collectible notes in the traditional sense.
When evaluating a pen-canceled note for purchase, compare its net-graded price against the cost of a straight-graded example in two full grades lower. If the net-graded piece is priced aggressively, it can represent genuine value, particularly in series where straight-graded examples are expensive. A PMG 30 Net pen-canceled 1890 Treasury Note can be a compelling entry point into a series where straight VF 30 examples sell for multiples more.
The Gray Zone: Cases That Require Expert Judgment
Between clear historical context and obvious damage lies a substantial gray zone that makes manuscript notation grading genuinely difficult. Several specific scenarios arise repeatedly at major grading services.
Tally Marks and Counting Notations
19th-century bank tellers regularly made small ink marks on notes as part of counting and verification procedures. A series of small dots or ticks in the margin of an 1875 National Currency note is almost certainly a period counting notation. Graders generally treat these with significant leniency, particularly when they appear in margins rather than across design elements. A single tally mark in the margin of a note grading Very Fine 30 or below is unlikely to trigger a net designation at all from either major service.
Dates Written by the First Owner
A surprising number of 19th and early 20th century notes carry dates written in ink by their original recipients, apparently as a record-keeping measure. A neat, period-ink date notation such as “Rec’d Jan 14 1878” on the reverse of a Series 1875 Legal Tender Note (Fr. 67-72 range) tells a specific story. Graders assess these by location, legibility, and size. A small date notation on the reverse in a margin area may result in no net grade on a circulated note. A large, prominent date written across the face design will still receive a net designation.
Ink Manuscript on Colonial and Continental Currency
For pre-Federal period collectors, the rules shift considerably. Colonial and Continental Currency notes from 1764 through 1780 routinely carried ink notations as part of their legal structure. Colonial notes frequently required the signatures of multiple officials to be legally valid, and notes lacking period signatures are actually incomplete. The 1775 Continental Currency $20 denomination, for instance, is authenticated in part by its hand-signed nature. For these issues, ink writing is not a detraction; it is a requirement. Graders treat period official signatures on Colonial issues as intrinsic to the note type, and the absence of proper signatures is actually the defect that attracts scrutiny.
| Series / Type | Notation Type | Grade Impact | Rarity of Notation-Free Examples |
|---|---|---|---|
| 1862-1863 Legal Tender (Fr. 16-23) | Period ink dates, endorsements | Minimal to none on reverse | Scarce |
| 1882 Brown Back Nationals (Fr. 467-476) | Merchant/payee endorsements | Minimal if on reverse | Scarce |
| 1890 Treasury Notes (Fr. 347-376) | Pen cancellations, teller marks | 2-3 full grade points | Rare |
| 1882 Gold Certificates (Fr. 1193-1199) | Bank cancellations in ink | 2-3 full grade points | Rare |
| Pre-1866 Obsolete State Bank Notes | Counterfeit detection marks | Minimal to none | Common |
| 1775-1779 Continental Currency | Official period signatures | None (required feature) | Key Date |
| 1934A $500 FRN (Fr. 2202) | Banker ink notations on face | Significant, 2+ points | Rare |
| 1928-1935 Silver Certificates | Modern ballpoint or pencil | Severe, often 3+ points | Common |
| 1902 Plain Back Nationals (Fr. 616-672) | Period tally and counting marks | Minimal if marginal | Scarce |
Practical Strategies for Collectors Buying Notated Notes Raw
The majority of currency with manuscript notations that collectors encounter will be raw, ungraded material at shows, estate sales, and online auctions. Developing a systematic evaluation approach before bidding or buying protects against costly mistakes.
Begin with the type of ink. Under good lighting or a loupe, look for the ink’s behavior in the paper. Period iron gall ink, common through the early 20th century, typically shows some paper feathering at the edges of letters and may display characteristic brownish oxidation. It also often shows slight show-through to the reverse. Ballpoint ink sits distinctly on the surface with clean, uniform edges and no paper wicking. Pencil marks, while sometimes confused with ink at a distance, will show no paper penetration and can typically be seen as graphite under magnification.
Next, assess placement with brutal honesty. A notation tucked in a bottom margin of the reverse is a very different proposition from a notation running diagonally across Washington’s portrait on a Legal Tender Note. Graders weight placement heavily, and so should buyers. A fair rule of thumb: if the notation obscures any part of the central design, portrait, or primary vignette on the face, expect a meaningful net deduction regardless of the ink’s apparent age.
Finally, research the specific note type. For Colonial, early Federal, and pre-Civil War notes, consult specialized references like Eric Newman’s “The Early Paper Money of America” or standard Friedberg catalog descriptions to understand what notations were typical for a given type. For National Bank Notes, the Standard Catalog of United States Paper Money (Krause Publications) provides essential context about period commercial practices by era.
Conclusion: Context Is Everything
Manuscript notations on currency resist simple rules precisely because currency itself has served so many different purposes across American history. A piece of paper that functioned as legal tender, commercial instrument, banking artifact, and personal record simultaneously is going to bear the marks of all those roles. The collector who understands why a notation was made, when it was made, and how graders are trained to evaluate it will consistently make better buying decisions than one who treats all ink writing as an automatic red flag.
The bottom line for practical collecting: period ink notations on pre-1900 notes, particularly on the reverse and in marginal areas, deserve careful research rather than automatic rejection. Modern ink notations on 20th-century small-size currency deserve exactly the skepticism their grade reductions imply. And for the Colonial and early Federal period, those hand-applied signatures are not defects. They are the note speaking directly to you across two centuries of American history.
