Collecting Bank Notes: Insights from Numismatist Larry Ayer of Woodland Treasure
- Stephanie Miller
- May 1
- 6 min read
When it comes to collecting paper money, knowledge is just as valuable as the notes themselves. Larry Ayer, the passionate numismatist behind Woodland Treasure, has built a reputation as an expert with integrity and a sharp eye for rare and historic bank notes. In this interview, Larry offers insights for new and established currency enthusiasts.
What first sparked your interest in collecting and studying bank notes, and when did that lead to adding them to the Woodland Treasures inventory?
Larry Ayer: My interest in collecting and studying bank notes started when I began seeing all these different works of art in coin cases at shows. These notes were so different in design, artistry, and colors than the standard notes of today. I purchased three 1861 Sanford, Maine bank notes issued from the Sanford Bank at the Bay State Coin Show in July of 2023 and they sold within a half hour. I felt I was on to something. I began buying reference books on Obsolete Currency to study further.
For collectors of paper money, their enthusiasm is limitless. This hobby goes well beyond simply gathering legal tender notes; it explores the artistry of banknote design, the historical importance of each denomination, and the excitement of discovering rare and collectible pieces.
One of the most remarkable features of paper money collecting is its visual appeal. Banknotes often showcase detailed artwork, including images of iconic landmarks and portraits of historical figures. The captivating beauty of these notes is unquestionable, elevating them from mere currency to works of art.
For someone new to collecting paper money, what key features should they look for when evaluating a bank note’s value and authenticity?
Larry Ayer: Of course if a note is graded by one of the two major grading services, authenticity and grade are guaranteed. Save PMG (Paper Money Guaranty) on your browser. They are a wealth of information. You can verify their notes and get a population report and photos, get access to price guides, and access their grading scale with definitions. Also, buy the book before the note and do your research.
If you know a reputable dealer, you can trust his judgement. There’s a nine volume series that I use: Obsolete Paper Money by Q. David Bowers. When evaluating the worth of your paper money collection, two key factors are considered: rarity and condition. The rarity of a banknote is influenced by aspects like the number of original prints and unique variations. Notes are generally much more scarce than coins. If a coin had less than twenty five examples available it would possibly be worth hundreds of thousands of dollars. You can get an obsolete note with the same amount available for a few hundred dollars.
Collectors are typically attracted to notes that are difficult to find, whether because of historical importance, limited print numbers, or other distinctive features. The appearance of the notes is also important. As noted, collectors use a grading system to assess the condition of banknotes. Understanding these grades is crucial for accurately appraising your collection.
How do historical events or economic conditions influence the design and rarity of certain bank notes?
Larry Ayer: Bank notes that have played a role in significant historical events or periods tend to accrue value over time. For example, Confederate States dollar bills are sought after due to their association with the American Civil War.
The Industrial Revolution was a big influence in the design of this two dollar Sanford Bank Note. You can see vignettes of women working in the textile industry, which was big in New England at this time. Other notes show pictures of farmers, loggers, or trains. Sanford was prospering economically during this time as a textile and lumber center.
The allure of banknotes extends far beyond their face value. For collectors and investors alike, certain banknotes are considered treasures, embodying rich historical narratives, artistic merit, and economic significance.
What’s the difference between a common note and a truly rare or investment-grade piece, and how can collectors tell the difference?
Larry Ayer: You must like the looks of the note first. If you like it then others should like it and if it doesn’t appeal to you then others likely won’t want it. You don’t want an ugly, faded, stained note or a note with pinholes or tears. Scarcity, condition, and demand are factors affecting price. A lot of obsolete currency is truly rare yet the market hasn’t adjusted to it yet and prices are very low compared to rarity.
Federally issued currency printed after the Civil War until 1929 (when they
started making notes smaller and more uniform) is in high demand, even though there were much more printed and more available. These large Legal tender and silver certificates still had varying designs and artwork such as a buffalo, eagle, Indian Chief, or Martha Washington on the obverse.
Because demand exceeds supply, prices are as much as five times higher than for an even rarer obsolete note. Condition is a big factor here as well. You might not ever find an older note in better than Fine or Very Fine condition whereas uncirculated newer notes can be found.
Can you explain the role of grading services and how condition affects a bank note's value?
Larry Ayer: Determining the condition and value of your banknotes is a crucial aspect of collecting. Professional grading services such as PMG (Paper Money Guaranty) or PCGS Currency provide a standardized and credible assessment of your notes. Higher graded notes are more valuable.
Generally creases equal circulated and no creases equal uncirculated. Remainder notes (uncirculated and unissued but nice) are usually worth less than an issued, signed, dated, and numbered higher grade circulated note. Grading offers an impartial evaluation, helping you understand the condition of your banknotes and their market value. Whether you're looking to buy, sell, or trade, grading your notes enhances transparency and credibility in the collector community.
What are some of the most interesting or unusual bank notes you've encountered through Woodland Treasure?
Larry Ayer: Two of the most interesting notes are the 1857 Bank of Cape Fear, North Carolina $4 note and the 1850’s Bank of Clarendon North Carolina $9 note. One doesn’t see four or nine dollar notes very often. Odd value notes are more in demand, such as $4, $6, $7, $8, and $9.
How should collectors properly store and preserve their bank notes to maintain their condition over time?
Larry Ayer: Proper storage is your insurance policy against the passage of time. One of the primary enemies of paper money is direct sunlight. Exposure to sunlight can cause currency to fade, diminishing its eye appeal and significance. Use cloth gloves when handling collectable currency.
To protect your paper money collection, find a cool, dry place with controlled humidity for storage. Keeping your collection away from direct sunlight and maintaining a temperature below 24 degrees Celsius (75 Fahrenheit) is essential.
If you plan to display your collection, consider investing in a case with UV-blocking Plexiglass to shield your notes from harmful UV rays. Also, invest in acid-free, archival-quality holders, sleeves, or albums to protect your notes from the environment.
What trends are you seeing in the world of paper money collecting, and how should collectors adapt?
Larry Ayer: I’m seeing a high demand for all types of paper currency. Sales are strong here at Woodland Treasure. There’s a lot of stuff for sale that has been out of sight for years from old-time collectors liquidating their currency collections and the good stuff is being graded.
PCGS Banknote just got back into grading currency in 2019. Currency sales at coin shows are extremely strong with more and more dealers getting involved. Nice stuff is never out of style.
Do some research, establish your collecting goals, and buy the best within your price range.
Why do you believe paper money—especially obsolete or historical notes— is an important part of preserving our national or regional heritage?
Larry Ayer: Collecting different types of old currency, especially obsolete bank notes, starts you on a journey of learning about the past. It brings up questions and a search for answers. It starts a collaboration with like minded collectors and dealers that help preserve national and regional heritage.
Each note or coin carries a unique historical significance that deserves preservation. These tangible artifacts provide us with a direct connection to the past, offering a glimpse into the economic and cultural fabric of bygone eras. Through their intricate designs, engravings, and inscriptions, old currency becomes a tangible representation of the civilizations that once thrived.
What sets Woodland Treasure apart from other sources for bank notes, and how do you ensure authenticity and quality for your clients?
Larry Ayer: Woodland Treasure strives to be a specialist in New England, especially Maine, obsolete bank notes. We are constantly looking to add these notes to our inventory. Every note is researched for authenticity. Of course every note that is graded is guaranteed authentic by the grading service.
Ungraded notes we sell are guaranteed by us as well. We will give a full refund if any note is found to be not as advertised. You would not be able to stay in business without your good reputation and we strive to keep that.
Whether you’re a seasoned bank note collector or just beginning your journey, Woodland Treasure is more than an online shop—it’s a resource, a community, and a gateway into the fascinating world of paper currency.
Ready to learn more or shop for available notes online? Woodland Treasure is a trusted source for serious currency enthusiasts. Visit https://woodlandtreasure.com/shop today and see what treasures you’ll discover.
Comments