The value of 1861 Confederate money firstly depends on whether the note is genuine. Fake Confederate paper money is common. The best way to determine whether a note is authentic is to take it to a reputable coin dealer for examination. Coin World hosts an online directory of coin dealers across the United States including those who specialize in paper money.
Confederate money was issued in Richmond, Va. and Montgomery, Ala., with Richmond producing the majority of the notes. Denominations for 1861 were $2, $5, $10, $20, $50, $100, $500 and $1,000. Unlike present-day money, Confederate notes varied considerably in their appearance. The amounts of each bill produced varied as well; notes produced in smaller quantities may be more valuable.
Another factor contributing to the collectible value of Confederate money is the condition of the bill. Some of these notes were produced with poor quality paper and ink and were subject to faster deterioration than others. Many genuine Confederate bills have blank backs or inscriptions advising that the Confederate States of America would reimburse the note bearer for the face value after ratification of a treaty with the United States of America. Early notes stated reimbursement would take place six or 12 months after the treaty. Notes issued toward the end of the war extended that period to two years after the treaty.