Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.
Notes and warrants associated with the various governments of Texas are among the most popular of all 19th century North American currency collectibles. Between the initial break with Mexico (1835) and the end of the Civil War (1865), the Provisional Government, the Government, the Republic, the State and the Confederate State of Texas each issued a variety of financial instruments and examples are highly prized by an active collector community. Among the more widely sought pieces are the Treasury Warrants of the Confederate years. These were issued pursuant to eleven "Military Service" and ten "Civil Service" post-secession acts of the state legislature. Prices commanded by well preserved specimens are on the rise and that's attracting investor interest.
The first two warrants pictured are colorful, uncirculated notes. The orange dollar bill was a military issue. The yellow note represented a payment on the civil side. The dollar is commonly available in lower grades, but hard to get in uncirculated condition. Ten years ago the piece shown cost about $50. Last year, it went for about $200. The yellow note was one that allowed the state comptroller to issue odd denominations, in this case $79.96. A year ago, I paid $95 for this example. Last month, it sold for $210.
Uncommon varieties are in particular demand. The two twenty dollar warrants pictured would be nice, uncirculated 
bills worth about $250 each, were it not for handwritten alterations applied just before they were issued. The civil note was printed with the notation that it was fundable in the "eight per cent" 1861 bonds associated with Texas land sales. That was altered to "six per cent" in red ink, to reflect backing by bonds associated with railroad company interest payments. That makes 
the note a relatively rare piece. Two years ago, it cost $150. Last week, it sold for $340. The second note bears the same alteration, as well as one changing it from a military warrant to a civil one. That combination is not noted in Texas currency catalogs, suggesting extremely rare status. Two years ago, I bought it for $140. At auction today, it might top $500.
The final piece illustrates the importance of knowing the worth of the items you buy and sell. At first glance, the bill appears to be a garden variety five dollar warrant. Closer examination, however, shows the "eight per cent" to "six per cent" alteration. Two months ago, it was offered for auction at a minimal opening bid. The change was not mentioned by the seller, nor was it apparently noticed by other bidders. I won the note for $75. Last week, I mentioned the change in an auction posting and sold the bill for $240.
Larry Schutts has invested in high grade collectibles for over twenty years and recently opened an online Collectible Investment Store.
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