What is Demand Note?

A form of paper money issued by the United States between 1861 to 1862 during the Civil War. Demand Notes were put into circulation to pay for any expenses during the Civil War, which included the salaries of staff and the military.

Demand Notes are the oldest legal currency in the U.S. today and were the first paper monies issued by the United States. Some Demand Notes are still being collected, but they are rare and have a high value. For example, a five-dollar demand note can command a price between $2000 and $25,000.

Before the Civil War and the introduction of Demand Notes, the U.S. did not put paper money into circulation. The constitution at the time did not give government the purview to create money, but the government could borrow money. On occasion, if funds were needed, the government would issue Treasury Notes, which were short terms debts to help in times of financial duress. Therefore, Treasury Notes were not considered legal tender. However, the way Demand Notes were used as payment for expenses during the war moved government-issued paper notes forward and led to the development of paper money in the United States.

Demand notes were issued in $5, $10, and $20 denominations. They were created with unique green ink which led to them being known as greenbacks, a name that is still used for modern U.S. money. Demand notes feature images including Abraham Lincoln, Alexander Hamilton, and the bald eagle.

The front face of Demand Notes held shared design elements including:

• The location a holder could redeem the note (New York, Philadephia, Boston, St. Louis, Cincinnati)
• The patent date, June 30, 1857
• The serial number in red ink
• Signatures of the authorized treasury official.

The backside of the note featured the “United States of America” and the denomination.

See “Greenbacks”

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