$2 Dollar Lazy Deuce Note

One of the most famous types of U.S. currency is the Fr. 387 Original Series $2 Lazy Deuce Note, dating to the U.S. Civil War. It’s readily apparent how this note acquired its “supine two” nickname: A large numeral “2” on its side covers more than half the width of the note’s face.

Background
Lazy Deuces harken back to the time of the War Between the States. Since First Charter Lazy Deuces of the Original Series and Series of 1865 are the only notes of this denomination of large size nationals, these tilted twos are a significant type note. Also, no small size $2 nationals were issued, so these notes are a denominational type as well.

National Currency was introduced to marshall resources of the northern financial machine behind the war effort to suppress the Southern Rebellion. Prior to this time our federal government struck and regulated the value of coinage, but left the field of paper money circulation in the hands of the states. Each individual state chartered or otherwise regulated banking corporations having circulation privileges.

It is claimed by some that this system of state-regulated bank note issue was fraught with misadventure. However this view is changing due to a new revisionist economic synthesis among historians and economists who have reread the data and challenged assumptions of earlier writers. Approximately 1,600 state banks were in business on the eve of the Civil War with a circulation of about $200 million.

The Lazy Deuce horizontal numeral “2” is actually a remnant of those halcyon days of state banking. One of the major problems of that era was raising the value on bank notes. A countermeasure was to print an oversize horizontal 2, or 3, or 5, etc. across the face of a note to foil alterations of its face value.

History
When war broke out and the central government needed to sell bonds to pay for arms and men, the Republican administration determined to set up a system of nationally chartered banks, whose note circulation would be secured by federal bonds. This improved bond sales and raised much needed funds for the war effort. A circulation tax on state notes impeded remnants of that system.

On Feb. 25, 1863, Congress authorized National Banks and national bank notes issued to the extent of 90% of qualified bonds deposited with the Comptroller of the Currency. Bank Charters lasted 20 years. Notes were authorized in denominations of $5-$1000.

To increase the quantity of small notes in circulation, $1 and $2 National Bank Notes were authorized for issue by the Act of June 3, 1864, until such time as the U.S. Treasury resumed specie payments. Production of plates for these $1 and $2 notes commenced Jan. 2, 1865.

The initial delivery of $1 and $2 First Charter nationals to the Comptroller of Currency for issuance to banks was on Mar. 28, 1865. The first $1 and $2 nationals actually delivered to a bank was to the First National Bank of Akron Ohio on Apr. 1, 1865.

Collecting
In addition to its large numeral “2” these notes have a vignette of a seated female holding “Old Glory,” a particularly appropriate image for a wartime issue. The vignette, engraved by Louis Delnoce, is entitled “Stars and Stripes.” The back design, also engraved by Delnoce, reproduces a painting “Sir Walter Raleigh Presenting Corn and Tobacco to the English” in black. The state seal of the issuing bank appears at left, and an eagle and shield at right. The back is green except for the black vignette of Raleigh and his cohort.

Most Lazy Deuces were printed four-up: three $1 notes with one Lazy Deuce at the bottom of the sheet. A small number of banks received $1-$1-$2-$2 sheets. Records of the Comptroller of the Currency indicate that 7,747,519 $2 Lazy Deuce National Bank Notes were issued in the two First Charter series. Approximately 80% of them were Original Series notes, and the remaining one-fifth Series 1875 notes. The quantity of Lazy Deuces in circulation peaked at about $3 million in 1869.

Prior to 1874 red bank charter numbers were not printed on Lazy Deuces. On May 14, 1874, overprinted black charter numbers began to appear on $1 and $2 National Bank Notes. On Mar. 3, 1875, Congress prohibited circulation of further $1 and $2 NBNs once specie payments were resumed. Last shipment of $1 and $2 nationals occurred on Jan. 22, 1879, to the First National Bank of Warren, RI.

Catalogs recognize seven varieties of Lazy Deuce, Friedberg nos. 387-393. Original Series notes like the one shown have spiked red Treasury Seals, and three signature combinations, Colby-Spinner, Jeffries-Spinner, and Allison-Spinner. Fr. 388 (Jeffries-Spinner) is by far the rarest. Only three examples are known. Series 1875 Lazy Deuces have red scalloped seals and four signature combinations, Allison-New, Allison-Wyman, Allison-Gilfillan, and Scofield-Gilfillan.

Records indicate that 1,430 banks in 41 states and territories issued $2 nationals. High point is New York, where 228 banks issued these notes. At the other end of the spectrum, only a single bank in Idaho and Wyoming Territories, and the Commonwealth of Virginia issued these desirable notes.

Approximately 1,700 Lazy Deuces are known extant. Current catalog values are somewhat misleading since they price these notes by variety at about $2,000 for notes in Very Good Condition up to five figures for Choice Unc. examples. Buyers -- other than type collectors -- however are generally shopping by state, city or particular bank meaning common Lazy Deuces can be obtained cheaper than the bottom figure.

However, it goes without saying that top notes do command top prices. In just Fine condition, rarities from the western region such Colorado Territory, Dakota Territory, Idaho Territory, Montana Territory, New Mexico Territory, Utah Territory, and southern states of Alabama, South Carolina, Virginia, Texas and Arkansas can and should bring medium five figures or more.

Issuance of additional small denomination $1 and $2 National Bank Notes was contemplated after the turn of the century. An amendment to the National Bank Act of Oct. 5, 1917, authorized a token amount of no more than $25,000 by any bank, but these notes were never prepared.