Currency > Broken Bank (1782-1866)
After the unmitigated disaster of Continental Currency, any U.S. bank was allowed to produce paper currency for use by its customers and community. Unfortunately, few safeguards were taken to ensure that banks stood behind the currency they were producing and circulating. Banks, more often than not, failed and their currency was rendered worthless giving rise to the currency’s alternate name “Broken Bank Notes”. As a result, most bank notes of the period did not trade at their full retail value. Oftentimes notes were worth only 50¢ on the dollar because the public expected most banks to fail. From 1782 until early 1866 more than 2,000 different banks issued notes in various denominations. On July 1, 1866, a 10% federal tax was levied on all business done with these notes, terminating their usefulness. It’s believed that this was done because starting in 1861, the U.S. Government was printing it’s own paper currency (again) and did not want competition from private sector banks.
Item: 1859 $10 “Dix” Obsolete or Broken Bank Note
Ranking: #86 of 100 Greatest American Currency Notes
Estimated Number Known: 200 to 400 (Unissued Remainder Only)
Links to Full Size Images: Obverse / Reverse
$10 “Dix” Obsolete or Broken Bank Note dated 1859
Noteworthy:
- Many believe this note was the basis of term “Dixie”.
- Dix on the reverse is French for “Ten”.
- Louisiana and especially New Orleans was called the “Land of the Dixies”, later “Dixieland”.
- This note is only available as an unissued remainder, no circulated copies are known.
Item: 1854 $3 West River Bank Obsolete or Broken Bank Note
Estimated Number Known: 1000 to 2000 (Unissued Remainder Only)
Links to Full Size Images: Obverse / Reverse
$3 West River Bank Obsolete or Broken Bank Note dated 1854
Noteworthy:
- One of my favorite Broken Bank Note Designs (How can you beat cherubs sitting on Silver Dollars?)
- The West River Bank was in Jamaica, Vermont
- The reverse was unprinted, though the paper was so thin the obverse design showed through.
- This note is only available as an unissued remainder, no circulated copies are known.