One of the famous relics of the U.S. Civil War is the "Lazy Deuce" National Bank Note. It's readily apparent how this note acquired its colorful "supine two" sobriquet.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 marshal 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. 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. For example, a $1 bill would be raised to a 10, or a two to a 20.
A countermeasure was to print an oversize horizontal two, or three, or five, etc., across the face of a note to foil alterations of its face value.
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 percent of qualified bonds deposited with the Comptroller of the Currency. Bank charters lasted 20 years. Notes were authorized in denominations of $5 to $1,000.
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 April 1, 1865.
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 titled "Stars and Stripes."
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 in $2 Lazy Deuce National Bank Notes were issued in the two First Charter series. Approximately 80 percent 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.
On Mar. 3, 1875, Congress prohibited circulation of further $1 and $2 National Bank Notes once specie payments were resumed. Last shipment of $1 and $2 Nationals occurred on Jan. 22, 1879, to the First National Bank of Warren, R.I.
Catalogs recognize seven varieties of Lazy Deuce, Friedberg Nos. 387-393. 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.
Approximately 1,700 Lazy Deuces are known extant. Buyers - other than type collectors - are generally shopping by state, city or particular bank.
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.
Source: numismaster.com
