The Hillsborough Bank of Amherst in New Hampshire issued this ten dollar note on November 18, 1806. The left side of the note reads “Potius Cohibere Quam Punire, New Hampshire, Quid Leges Sine Moribus” (Rather than inflict punishment, restrain. What is law without morals?). The note reads “The President, Directors, & Company of the Hillsborough Bank promise to pay [Name] or bearer on demand, Ten Dollars, Amherst, November 18, 1806.” The note is signed by the bank’s cashier, Dave Holmes, and the bank’s president, Samuel Bell. The Hillsborough Bank was founded on June 18, 1806, and capitalized with 50,000 dollars. The notes were printed using Jacob Perkins’s “Permanent Stereotype Steel Plate” that prevented forgery. The bank only lasted three years, as it extended its currency beyond its reserves, and the Embargo Act of 1807 stymied New England’s trade. When note holders came to collect their specie, the bank could not fulfill its obligations and was forced to shut down.
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.
The Kirtland Safety Society Bank of Kirtland, Ohio, issued this five dollar note on February 10, 1837. The note’s plates are printed by Underwood, Bald, Spencer & Hufty of Philadelphia. The note is decorated with a central motif of a man seated on a log with a dog. The identical end panels depict a young boy with a shovel over his shoulder. The note is signed by the bank’s cashier, Joseph Smith, and its president, Sidney Rigdon.
The Kirtland Safety Society Bank was formed by Joseph Smith and other members of the Church of Jesus Christ of Latter-day Saints on November 2, 1836. The bank’s constitution established the capital stock of four million dollars, a severe overextension of the available specie in the area. With the closing of the Second Bank of the United States in 1836, many states allowed “free banking,” however, Ohio still required banks to be granted a charter from the state legislature. When Ohio’s legislature declined a charter for Kirtland, the officers formed their own “anti” bank. Like many banks at the time, the Kirtland Safety Society Bank failed spectacularly in the general financial crisis of 1837.
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 many are held in the National Numismatic Collection.
Obverse Image: To the left is an image of Liberty holding a spear, center image of woman sitting on a trunk with a shield behind her and the right image is of Ceres sitting on a cornucopia in front of a pillar.
Obverse Text: ONE / SECURED BY PLEDGE OF PUBLIC STOCKS / 1 / C / NO. 1165 / THE FARMERS BANK OF ALABAMA WILL PAY ONE DOLLAR TO THE BEARER ON DEMAND. / MONTGOMERY / 1862 / J. MANOUVRIER N. ORLEANS
Obverse Image: Chinese at top, serial number to the right and left, denomination to the sides and in each corner, junk boat at center.
Obverse Text: [NEEDS TRANSLATION]
Reverse Image: Name of bank at top, to the sides, and in each corner, new summer palace, Peking, at center.
Reverse Text: 5 / BANK OF COMMUNICATIONS / 5 / 5 / C358294Y / FIVE YUAN OF THE NATIONAL CURRENCY OF THE REPUBLIC OF CHINA / C358294Y / 5 / 1935 / 5 / THOMAS DE LA RUE & COMPANY, LIMITED, LONDON.