In the world of numismatics, where paper money can transcend its face value to become a historical artifact, one bill reigns supreme: the 1890 $1,000 Treasury Note. Known by the colorful and evocative nickname, the “Grand Watermelon,” this piece of currency holds the record as the most valuable U.S. banknote ever sold, fetching an astounding $3.29 million at auction in 2014.

But what makes this obscure, high-denomination note from the late 19th century so valuable? The answer lies in a perfect storm of rarity, an iconic design, and a dramatic history that cemented its place as the “King of Notes.”

The Mystery of the “Watermelons”

The distinguishing factor that gave this bill its famous moniker is found on its reverse side. The three large, green zeros that signify the note’s $1,000 denomination are rendered in a distinctly oversized, ornate script. To the numismatic community, these plump, looping zeros look exactly like the dark green rind of a striped watermelon.

Beyond its peculiar nickname, the front of the note is a masterpiece of early U.S. currency design. It features a portrait of Civil War General George Meade, whose likeness is juxtaposed against a complex, almost overwhelming, display of scrollwork and vignettes designed by the U.S. Bureau of Engraving and Printing. This high level of ornamentation was intended to deter counterfeiting, but the design was criticized for being overly complicated, leading to a simplified redesign just one year later in 1891.

A Brief Existence and Profound Rarity

The 1890 Treasury Notes were issued under the Legal Tender Act to facilitate large commercial and governmental transactions. With a face value equivalent to nearly $29,000 in today’s money, the notes were not meant for everyday use.

This high denomination and limited practical circulation are the primary reasons for its scarcity:

1. Limited Printing: Only about 16,000 to 18,000 of the 1890 $1,000 notes were ever printed.
2. Redemption: Due to their redeemable status, most notes were eventually returned to the Treasury and destroyed.
3. Survival Rate: Today, only three collectible examples of the “Grand Watermelon” are known to exist in private hands, making it one of the rarest artifacts in American financial history.

The Record-Breaking Auction History

The “Grand Watermelon” note has a storied auction history, chronicling the dramatic rise of rare currency values over the last century. Its collectible value was evident early on; in 1944, one example sold at auction for $1,230, already far exceeding its face value. This appreciation continued rapidly: the same note sold for $11,000 in 1970.

The true explosion in value occurred in the 21st century. In 2005, the “Grand Watermelon” became the first U.S. banknote ever to surpass the $1 million mark at auction. Just nine years later, in 2014, it cemented its iconic status by selling for a staggering $3.29 million, setting the current world record for the highest price paid for a single piece of paper currency. Numismatic experts consistently rank the “Grand Watermelon” as the single most important and desirable piece of American currency due to its beauty, history, and profound scarcity.