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The 1879 Refunding Certificate 

The 1879 Refunding Certificate was issued as an interest-bearing banknote.  Issued only in $10 denominations, this note paid a 4% annual dividend. In 1907, Congress authorized the redemption of this series, giving the notes a final value of $21.30.  $40 million worth of notes were originally issued, though the majority were retired long before 1907.  Two variations of this security were created, the reverse design having the difference.  The more extent note is featured below, and is payable to bearer.  A payable to order, or registered version, was also issued, with two known surviving examples.

1879 Ten Dollar Refunding Certificate

The obverse text of the note reads as follows:

This certifies that the sum of Ten Dollars has been deposited with the Treasurer of the United States under Act of February 26th, 1879. Convertible with accrued interest at 4 per cent per annum into 4 per cent bonds of the United States issued under the Acts of July 14, 1870 and January 20, 1871 upon presentation at the office of the Treasurer of the U.S. in sums of $50. Or multiples thereof.

One of an estimated 200 known 

Copyright The Joe I. Herbstman Memorial Collection of American Finance 

 

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