Question: I have an 1862 Legal Tender $1 that has several pinholes at one end. I’ve read about pinholes, but I haven’t seen any on modern notes. Were these a test of some kind, or why did people often put pinholes in currency? -N.B.
Answer: There were two main reasons. The first was to pin one or several pieces of paper money to the inside of a coat or jacket, for security purposes. The second was simply to attach small groups of bills together, such as a handful of $20 (or whatever) notes in a bank or counting house, so they wouldn’t’ have to be counted again. By the early 20th century the paper clip took the place of pins for this purpose—leaving paper clip stains (rust marks) on some 20th century notes.
