Walk into almost any major currency auction and you will find the usual suspects commanding headlines: the 1890 $1,000 Grand Watermelon, the 1880 $500 Legal Tender, the elusive 1863 National Bank Note from some obscure Wyoming territory bank. But tucked quietly into the floor lots and specialty sales, often misidentified or simply misunderstood, are the Treasury Notes of 1890 and 1891, a series so architecturally beautiful and politically fascinating that they deserve far more attention than the hobby gives them. Issued under the Sherman Silver Purchase Act, these notes bridged two monetary eras, promised redemption in coin, and featured some of the most elaborate engraving ever placed on American paper money. If you have never seriously studied them, you are missing one of the great stories in United States currency history.
The Political Machinery Behind the Notes
To understand Treasury Notes, you first have to understand the political war being fought over American monetary policy in the late 1880s. Silver mining interests in the West, squeezed by the demonetization provisions of the Coinage Act of 1873 (which opponents bitterly called the “Crime of ’73”), had been lobbying for years to restore government silver purchases. The Bland-Allison Act of 1878 had offered partial relief, requiring monthly Treasury purchases of between two and four million dollars worth of silver, but the silver advocates wanted more. Senator John Sherman of Ohio helped craft a compromise measure that became law on July 14, 1890.
The Sherman Silver Purchase Act required the Treasury to purchase 4.5 million ounces of silver per month, paying for that silver with a new class of obligation: Treasury Notes of 1890. These notes were to be legal tender for all debts, public and private, and were redeemable “in coin” at the Treasury. That word, coin, was deliberately ambiguous. Silver advocates assumed it meant silver dollars. Gold advocates assumed it meant gold. The ambiguity was politically intentional, and it would eventually help destroy the very monetary system these notes were meant to stabilize. When President Grover Cleveland pushed for repeal of the Sherman Act in 1893, partly citing the gold drain caused by note holders demanding gold redemption, the Treasury Notes were effectively orphaned. New issuances stopped, though existing notes remained in circulation for years.
The 1890 Series: The “Watermelon” Backs
Numismatists who know only one thing about Treasury Notes usually know about the back design of the 1890 series. The Bureau of Engraving and Printing created an extraordinary lathe-work pattern for the reverses of the 1890 notes, featuring large, ornate zeroes in the denomination counters that are so boldly rounded and full that collectors have nicknamed the design the “Tombstone” back on lower denominations and the “Watermelon” back on the $100 and $1,000 notes. On the $100 (Fr. 372 and 373), the two large zeros in the numeral “100” on the back genuinely resemble a pair of watermelons, a design so exuberant it seems almost accidental.
The $1,000 denomination of the 1890 series (Fr. 379a) is the note that most collectors have heard of even if they have never seen one. With a back that features three enormous zero counters in the “1,000” denomination, this is the note simply called the Grand Watermelon. Fewer than a handful are known to exist, and the last major auction appearance saw an example in Fine condition realize over $3.2 million. It is not a note for most collectors, but it illustrates how extreme the rarity spectrum runs within this series.
When examining 1890 series Treasury Notes, pay close attention to the back design as a primary authentication point. The lathe-work on genuine examples has an extraordinary depth and crispness that is extremely difficult to replicate. Any note with soft or flat-looking geometric patterns on the reverse warrants careful scrutiny and professional certification before purchase.
The 1891 Series: A Redesigned Back
The 1890 back designs, beautiful as they were, presented a practical problem. The dense geometric lathe-work was difficult to print consistently at high volumes, and there were legitimate counterfeiting concerns because the intricate patterns made it harder to detect alterations to denomination figures. For the 1891 series, the Bureau of Engraving and Printing simplified the backs considerably. The large ornate zero counters gave way to cleaner, more conventional designs with smaller numeral counters and more open engraving. Collectors often call the 1891 reverses “plain backs” by comparison, though they are still far more ornate than modern Federal Reserve Notes.
The 1891 series covers the same denominations from $1 through $1,000 (the $1,000 of 1891 is Fr. 379b, though it is of comparable rarity to its 1890 counterpart). What changed most significantly between the two series, aside from the back designs, were the signature combinations. The 1890 notes carry the signatures of Rosecrans-Huston, Rosecrans-Nebeker, and in some denominations, additional pairings depending on when plates were prepared and notes delivered. The 1891 series extended through the Rosecrans-Nebeker pairing and added Tillman-Morgan, a combination seen across multiple denominations. These signature varieties are tracked by Friedberg number and create meaningful rarity distinctions within denominations that look nearly identical at a glance.
Portrait Gallery: Who Is on Each Denomination
One of the pleasures of collecting Treasury Notes is the diverse portrait gallery on the face designs. The $1 of both series features Edwin M. Stanton, Lincoln’s Secretary of War, engraved with meticulous detail. The $2 carries General James B. McPherson, a Union commander killed at the Battle of Atlanta in 1864. The $5 depicts General George H. Thomas, the “Rock of Chickamauga.” The $10 carries Philip Sheridan, the aggressive Union cavalry general who later led the Army in the Plains Wars. The $20 shows John Marshall, Chief Justice of the Supreme Court. The $50 and $100 feature William H. Seward and Admiral David G. Farragut, respectively. The $1,000 note carries General George Meade, the victor at Gettysburg, on the face, making it one of the most historically resonant portraits in American currency history.
The $2 Treasury Note (Fr. 353 for the 1891 Tillman-Morgan signature combination) is one of the most obtainable low-denomination Treasury Notes in circulated grades. Examples in Very Fine condition can often be found for under $600 at major currency dealers, making this an excellent entry point for collectors who want a genuine Treasury Note without a four-figure budget.
Signature Combinations and What They Mean for Value
Understanding the signature combinations on Treasury Notes is essential to accurate attribution and valuation. The Treasury Register and Treasurer of the United States signed all large-size currency of this era, and changes in officeholders created new signature varieties that were tracked from the first sheets printed after a new officer took their oath. For Treasury Notes, the relevant pairings are:
- Rosecrans-Huston: William S. Rosecrans (Register) and Daniel N. Huston (Treasurer). This pairing appears primarily on the 1890 series and is the scarcer combination across most denominations.
- Rosecrans-Nebeker: William S. Rosecrans (Register) and James W. Nebeker (Treasurer). Found on both 1890 and some 1891 issues.
- Tillman-Morgan: Morgan N. Tillman (Register) and Daniel N. Morgan (Treasurer). This is the most common pairing on 1891 notes and the easiest to find in higher grades across lower denominations.
For the $1 denomination, the Friedberg numbers run from Fr. 347 (1890 Rosecrans-Huston) through Fr. 352 (1891 Tillman-Morgan). The 1891 Tillman-Morgan $1 (Fr. 352) had a substantially larger print run than the 1890 Rosecrans-Huston (Fr. 347), and that difference is directly reflected in auction prices. An Fr. 347 in Very Fine might fetch $800 to $1,200, while an Fr. 352 in the same grade often sells in the $175 to $350 range, a dramatic spread for notes that look superficially similar to the untrained eye.
Grading Treasury Notes: Key Considerations
Grading Treasury Notes requires attention to a few characteristics that differ from later Federal Reserve Note grading. These notes circulated heavily through the 1890s and into the early twentieth century, so genuinely high-grade survivors are scarce. When assessing condition, look carefully at the following areas:
Corner folds and folds at center: The most common damage on circulated examples. A single center fold drops a note from Very Fine to Fine in most graders’ eyes. Multiple folds push a note into the Very Good range, which still has real collector value for scarcer varieties.
Margins: Large-size notes of this era were cut by hand from large sheets, and margins vary considerably. A note with wide, even margins commands a premium even at the same technical grade as a note with narrow or uneven margins.
Paper quality: Watch for staining from moisture or improper storage. The characteristic off-white or slightly cream color of original paper should be present. Washed or chemically treated notes sometimes appear brighter than genuine uncirculated examples but will fail paper quality tests under ultraviolet light.
For Treasury Notes in the $5 to $20 denomination range, always pursue PMG or PCGS Currency certified examples when buying above the Fine grade. Alterations to these notes, particularly the removal of folds via pressing or chemical treatment, are well documented. A certified VF-30 is often a safer purchase than a raw note that appears to grade EF-40, especially for scarce signature varieties.
The Rarest Treasury Notes Outside the $1,000
Most collectors instinctively focus on the $1,000 Grand Watermelon as the summit of Treasury Note rarity, but several other varieties present meaningful challenges even for well-funded collectors. The $50 of the 1890 series with the Rosecrans-Huston signature combination (Fr. 374) is genuinely rare in any grade, with auction appearances measured in years rather than months. The $100 1890 Watermelon back (Fr. 372 and Fr. 373) sees perhaps two or three major auction appearances per year across both signature varieties, and examples in Fine or better condition regularly exceed $50,000. Even the $20 of 1890 in Rosecrans-Huston (Fr. 370) is considered a key date that commands significant premiums in all grades above Very Good.
For collectors working with more modest budgets, the good news is that the $1 and $2 denominations of the 1891 series in Tillman-Morgan are genuinely accessible. A collection built around lower-denomination Treasury Notes in circulated grades, assembled by signature combination and series year, can be completed for well under $5,000 if the collector exercises patience and works with reputable dealers and auction houses.
| Friedberg No. | Series / Denomination | Signature Combination | Rarity |
|---|---|---|---|
| Fr. 347 | 1890 $1 | Rosecrans-Huston | Scarce |
| Fr. 352 | 1891 $1 | Tillman-Morgan | Common |
| Fr. 353 | 1891 $2 | Rosecrans-Nebeker | Scarce |
| Fr. 356 | 1891 $2 | Tillman-Morgan | Common |
| Fr. 370 | 1890 $20 | Rosecrans-Huston | Rare |
| Fr. 372 | 1890 $100 (Watermelon) | Rosecrans-Huston | Rare |
| Fr. 374 | 1890 $50 | Rosecrans-Huston | Rare |
| Fr. 375 | 1891 $50 | Rosecrans-Nebeker | Scarce |
| Fr. 379a | 1890 $1,000 (Grand Watermelon) | Rosecrans-Huston | Key Date |
| Fr. 379b | 1891 $1,000 | Rosecrans-Nebeker | Key Date |
Where Treasury Notes Fit in a Larger Collection
Treasury Notes occupy a very specific niche in the taxonomy of United States paper money. They are not Legal Tender Notes (United States Notes), which trace back to the Civil War era and carry different redemption clauses and seal colors. They are not Silver Certificates, which promised redemption specifically in silver dollars. They are not Gold Certificates, which were warehouse receipts for gold coin. Treasury Notes exist in their own category, authorized by a specific statute, redeemable in deliberately ambiguous “coin,” and issued for only a few years before being phased out following the Sherman Act’s repeal in 1893.
For a type collection of nineteenth century United States large-size paper money, Treasury Notes are an absolutely essential component. A collector building a comprehensive type set of US currency needs at minimum one example each of the 1890 and 1891 series to represent this class of obligation. Because the $1 and $2 denominations of the 1891 Tillman-Morgan variety are the most available, they are the natural entry point, but collectors who want the visual drama of the Watermelon back designs should budget for the higher denominations of the 1890 series.
The Standard Catalog of United States Paper Money by Schwartz and Lindquist and A Guide Book of United States Paper Money by Arthur Friedberg are both essential references for Treasury Notes. Cross-reference Friedberg numbers with known population data from PMG and PCGS Census reports before making any significant purchase, as certified population data for scarce varieties can shift auction values substantially from published price guides.
The Legacy of the Coin Notes
When the Sherman Silver Purchase Act was repealed in November 1893, the Treasury Notes of 1890 and 1891 did not immediately disappear. They continued to circulate alongside Silver Certificates and Legal Tender Notes, gradually wearing out and being destroyed as they returned to the Treasury. The Bureau of Engraving and Printing did not produce new Treasury Notes after the repeal, which is why surviving high-grade examples are so much scarcer than comparable Silver Certificates of the same period. Notes that were saved as curiosities, folded into family Bibles, tucked into old wallets, or squirreled away by early collectors are essentially all that survived in collectible condition.
There is something genuinely moving about holding a Treasury Note of 1890. It is a physical artifact of one of the fiercest monetary policy debates in American history, a debate over silver versus gold that defined national politics for a generation and culminated in William Jennings Bryan’s famous “Cross of Gold” speech at the 1896 Democratic National Convention. These notes were the tangible product of that struggle, issued under a compromise law that satisfied nobody, redeemable in coin that nobody could agree to define, and ultimately retired when the political will to maintain them collapsed. They are beautiful, they are historically important, and they are still obtainable at a wide range of price points. The collector who passes them by is leaving one of the great numismatic stories untold on their shelf.
