One (1) 5 dollar noteThe Lafayette Bank, Boston, Massachusetts, 1837Obverse Image: Small portrait of George Washington in a decorative oval border, a factory building and a portrait of Lafayette.Obverse Text: 5 / NO 614D / THE PRESIDENT, DIRECTORS AND COMPANY OF MASS.
- Description (Brief)
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One (1) 5 dollar note
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The Lafayette Bank, Boston, Massachusetts, 1837
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Obverse Image: Small portrait of George Washington in a decorative oval border, a factory building and a portrait of Lafayette.
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Obverse Text: 5 / NO 614D / THE PRESIDENT, DIRECTORS AND COMPANY OF MASS. / THE LAFAYETTE BANK PROMISES TO PAY FIVE DOLLARS TO BEARER ON DEMAND / BOSTON / JOSHUA CHILD / ISAAC BERMES
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Reverse Image: N/A
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Reverse Text: N/A
- Description
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The Lafayette Bank of Boston, Massachusetts issued this five dollar note in January 1837 to Josiah Dunham Jr. The note—numbered 614D—is decorated by a scene of Alger’s Iron Foundry in South Boston, with oval inset portraits of George Washington on the left and the Marquis de Lafayette on the right. The note is signed by the bank’s cashier, Joshua Child, and its president, Isaac Barnes. Lafayette Bank was established on April 16, 1836, with a capital stock of 150,000 dollars.
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The Lafayette Bank and the signatories on this note are notable for the spectacular failing of the bank that ended with the presidents of the board all indicted of perjury, with Josiah Dunham Jr. being convicted on that count. The perjury charge was related to falsifying the records of the bank, necessitated by the dissemination of out-of-circulation bank notes for their own use. The bank failed in July 1837.
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From 1790 to 1863, states and private banks issued their own currency to supply capital in a young nation without a national currency. This currency was backed by the hard money the banks had on deposit, and was only used locally where the bank and its operators were trusted in the community. However, banks often oversupplied notes, and this overextension caused bankruptcy among private and state banks when financial panic struck, particularly in 1837. Currencies from these failed banks are known as “obsolete bank notes” or “broken bank notes,” and several are held in the National Numismatics Collection.
- Location
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Currently not on view
- date made
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1837
- maker
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New England Bank Note Co.
- ID Number
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NU.73.6.18
- accession number
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304868
- serial number
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614
- catalog number
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73.6.18
