A $20 bill issued 136 years ago by a long-departed San Diego bank is worthless as currency - and potentially priceless as a collectible.

While this 1882 "brownback" from the Consolidated National Bank of San Diego is not legal tender, it is prized by collectors. In 2000, it sold for $27,500.

A far greater price is expected today when the bill is auctioned at the annual Long Beach Expo Coin, Currency, Stamp and Sports Collectible Show.

"The estimate on this is $100,000 to $125,000," said Eric Bradley of Heritage Auctions, which will oversee the bidding.

Elaborately engraved in greens, reds and russet brown, the bill is a relic of a defunct institution - Consolidated National folded in 1893 - and a vanished era. Throughout the19th century, it was common for American banks to print their own money.

"Unfortunately," said Dustin Johnson, Heritage's currency expect, "that money was only as good as the bank and its owners. Since most banks were locally owned, the further onegot the from the bank, the less the money was worth.

"Even in the next town over, a note would be heavily discounted based on a lack of knowledge regarding that bank's finances, or even if it was still in business."

One solution devised by Washington: "National Banks." Each was allowed to buy $25,000 in bonds, depositing the money with the U.S. Treasury. In exchange, the banks could issue$25,000 of their own currency, which would be accepted at all of the 12,000 National Banks.

Then came the Panic of 1893, a nationwide depression that wiped out many banks, including five of San Diego's eight banks. Consolidated National was wiped out and itspresident, Judge Oliver S. Witherby, lost most of his fortune.

To read the complete article, see:
For a worthless $20 bill from a bygone San Diego bank, the bidding begins at$50,000 (http://www.sandiegouniontribune.com/news/sd-me-currency-auction-20180831-story.html)