When it comes to collecting and investing in American Currency, there is one series of notes that stands out as unique. In 1896 the Bureau of Engraving and Printing chief Claude M. Johnson ordered the production of a series of currency that was meant to visually educate the user. Educational Notes were iconic large format pieces of currency which are separate by design from anything that has circulated before or since that time.

When it comes to collecting and investing in currency notes and coins, take heed. The Educational Notes series is among the most sought after of all notes printed by the Bureau of Engraving and Printing. As such, the prices will reflect this premium and will rival a $1,000 bill and their market is more defined than single-state currency.

The Educational Notes represented a radical departure from typical American currency of the time. Three muralists Will H. Low, E.H. Blashfield, and Walter Shirlaw were commissioned to create what many people would consider to be art. Chief engraver for the project was Thomas F. Morris.

These notes are the only American notes ever produced without geometric lathe, which are patterns on the printing plates used to prevent counterfeiting. The lathe were almost impossible to forge by hand engraving. Scenes on the obverse sides of the $1, $2, and $5 dollar bills show in great detail the wonders and beauty of America in 1896.

The $1 is a depiction of History instructing youth. History is a woman and the youth gaze out on the Washington mall. How uncluttered the mall looks just ahead of the 20th century. On the one dollar note the obverse has portraits of Martha and George Washington where a large 1 was engraved between the two causing outrage that nothing should come between the first family ever.

The $2 is Science presenting steam and electricity to commerce and manufacturing. Could the creators of the Science note have known how far things would come since the 1890s?

The final of the series is the $5 depicting electricity as the dominant force in the world.  Some Americans of the day were outraged as a partially nude woman depicted with an exposed chest on that $5 note. It earned the nickname ‘Banned in Boston’ over public efforts to remove nudity for the sake of the children.

Image below offered by Heritage Auctions.

Collectors Dashboard evaluates collectibles as an alternative asset class, effectively looking at collectibles that cost hundreds or thousands of dollars in the same light as investing in stocks and bonds. Some even cost enough they can replace investing in real estate. It is also undeniable that collectors are in direct competition with investors. Collectors may have a deep passion to own certain collectibles, but investors are solely buying to sell at a higher price in the future.

As with all collectibles and traditional investments, there are no assurances that a buyer will make a profit. In fact, many collectibles will decline in value over time.

Premium is the word that best describes the value of Educational Notes from 1896. Collectors know the term highlights nicely detailed examples of the notes that are desired for display opportunities. The auction giant eBay sells many of the notes in various conditions. The most desirable notes are uncirculated or close to uncirculated. Here are some examples that were sold on eBay recently:

• July 31, 2021 FR224 $1 1896 SILVER CERTIFICATE “EDUCATION” NOTE PCGS 63 CHOICE UNC WLM8057 sold for “best offer” for a price less than $2,495.00.
• July 29, 2021 1896 $1 Bill Educational Note Silver Certificate Awesome! PMG 40 EPQ 708-KBFT sold for “best offer” for a price less than $1,571.99.
• July 18, 2021 $5 1896 Silver Certificate Educational Note PMG20 sold after 1 bid for $2,000.00.
• July 18, 2021 1896 $1 ONE DOLLAR “EDUCATIONAL” SILVER CERTIFICATE NOTE~VERY FINE sold after 26 bids for $521.99.
• June 6, 2021 1896 $1 Silver Certificate “Educational Note” Fr 224 PCGS Superb Gem New-67 PPQ sold for a buy it now price of $10,100.00.
• June 5, 2021 1896 $2 Educational Silver Certificate Note – Graded PMG 25 Very Fine – Fr. 248 sold for the buy it now price of $1,449.99.
• May 23, 2021 1896 $1 Dollar Silver Certificate Large Size Educational Note Fr-225 PMG XF40 sold for a buy it now price of $1,199.99.

Heritage Auctions has these recent sales of higher grade specimens:

• April 23, 2021 Fr. 224 $1 1896 Silver Certificate PCGS Banknote Gem Unc 65 PPQ sold for $4,080.00.
• April 23, 2021 Fr. 247 $2 1896 Silver Certificate PMG Choice About Unc 58 EPQ sold for $5,760.00.
• April 23, 2021 Fr. 247 $2 1896 Silver Certificate PMG Choice Very Fine 35 sold for $2,640.00.
• June 15, 2021 Fr. 224 $1 1896 Silver Certificate PMG Choice About Unc 58 EPQ sold for $1,860.00.
• June 24, 2021 Fr. 248 $2 1896 Silver Certificate PMG Choice Very Fine 35 EPQ sold for $3,360.00.
• June 25, 2021 Fr. 268 $5 1896 Silver Certificate PMG Very Fine 30 sold for $3,840.00.

A unique sale on April 23rd 2021 through Heritage Auctions was of a sheet of uncut $1 dollar notes representing sequential serial numbers 5-8 and sold for $108,000.00 on April 23, 2021. The Heritage Auctions description includes the following:

This is the second sheet produced for the $1 1896 Educational Series. A penned notation along the bottom margin reads, “Issued July 23, 1896 Washington, DC 12:30 PM D(aniel) N. Morgan.” Morgan has also courtesy autographed all four notes on the back vertically to the right of Washington’s portrait on two lines. “DN Morgan,” which is the top line and “July 23, 1896,” which is the bottom line. PCGS has commented on the minor restorations in the selvage, which appear to be the closing of a few immaterial edge splits. D.N. Morgan’s engraved signature also appears on the notes of this sheet. He served as Treasurer of the United States from June 1, 1893 to June 30, 1897.”

Currency collecting thrives on the highest graded examples. Not all examples funnel through the grading service PMG, but PMG is the currency encapsulation standard most trusted by collectors. Populations of these notes from their records are as follows:

PMG references the $5 population, “According to the PMG Population Report, notes of this issue, Fr#268 are more available than Fr#269 and Fr#270. As of February 2009, PMG has graded 13 examples at the level and five higher (all SGU 67 EPQ)”.

The catalog numbers 224 to 225 for the $1 denomination have 4,299 total examples. The catalog numbers 247 to 248 have a total of 1,769 total examples. The catalog numbers 268 to 270 for the $5 denomination of the 1896 series has a total of 1,500 graded examples. Population numbers for all three in higher grades number in the dozens vs hundreds. Lower grades sell for less, but they are more common among collectors.

Entry level collectors can own a piece of the historical series for a few hundred dollars while serious investors can invest thousands of dollars to own the finest examples.