Obsolete Currency Types and Denominations

1858 $5 Obsolete bank note from the Monongahela Valley Bank of McKee's Port, PA.

Obsolete Currency Types and Denominations

Obsolete Bank Notes

During the Obsolete Bank Note era (1782-1866), over 30,000 different designs of Obsolete bank notes, in many different denominations, were issued by over 2,500 different state and private banks.

Many early banknotes used simple designs that were easy to counterfeit. Banks started using more intricate designs to try to deter counterfeiters, which helped, but counterfeiting continued to be an ongoing problem, making it necessary for banks to change their bank note designs often.

Counterfeiting was one of the primary reasons there were over 30,000 different designs of bank notes from over 2,500 banks during the Obsolete Bank Note era. Banks also wanted different designs for their notes to differentiate themselves from other banks. By the 1850s, the bank note printers were using some of the best artists and engravers in the country to produce colorful and very intricate designs using intaglio printing that became very hard to counterfeit.

Denominations

1858 $7 Obsolete signed/issued bank note from the Bank of Cape Fear, Wilmington, NC. Courtesy of Heritage Auctions, www.ha.com

Obsolete bank notes were issued in many different denominations. Almost 100 different denominations for obsolete bank notes and scrip have been identified. Here is a list of several of the dollar-based denominations, many of which are readily collectable:

• Standard denominations: $1, $2, $3, $5, $10, $20, $50, $100, $500, $1000
• Other denominations: $1.25, $1.50, $1.75, $2.50, $4, $6, $7, $8, $9, $11, $12, $13
• Fractional Denominations: 1cent, 3cents, 5cents, 6.25cents, 10cents, 12.5cents, 15cents, 25cents, 50cents

Remainders

$3 Obsolete Remainder from Peoples Bank of Saint Peter, MN

Remainder bank notes are legitimate notes that have not been signed and issued. These notes lack the signatures of the bank officers, and possibly the date and serial number (if those were not pre-printed). Since Remainders were not issued, they are often found in excellent condition.

Remainders should not be confused with Proof notes, which were printed on special 'India' paper, and usually mounted on card stock with hole punch cancels on the signature lines.

Caution: Issued/signed notes are generally considered more desirable (and valuable) than unsigned remainders, so sometimes an unscrupulous person will 'sign' a remainder to make it appear to be an issued note.

Proofs

$5 Obsolete Proof note from Bank of Charleston, Charleston, SC. Courtesy of Heritage Auctions, www.ha.com

When banks ordered bank notes from a printer, after the printing plate had been prepared, the printer would print samples called Proofs. These were printed on special 'India' paper, and often mounted on card stock with hole punch cancels on the signature lines. These proofs were usually printed in very small quantities (e.g., two to six) to be inspected by the engraver and approved by the bank.

The engraver and the bank sometimes kept their proofs, and any remaining samples were usually locked up in the printer's archives. In September of 1990, many of these original proofs from the archives of the American Bank Note Company were sold at auction, giving collectors a great opportunity to obtain examples of rare notes. Notes from this provenance usually have 'Property of American Bank Note Company' rubber stamped on the back. Additionally, American Bank Note Company in the 1960s and 1970s would occasionally reuse original plates in its possession to make reprints of bank notes. The ink color and paper were usually not true to the original notes. These are known as 'Proprietary Proofs' and are worth considerably less than original notes.

Municipal & Merchant Scrip

15 cents Merchant scrip from P. Vidvard, Utica, NY, Sep 23, 1862.

Municipal and Merchant Scrip was issued by State, County & City municipalities or private merchants or other businesses. This scrip was not legal tender and was usually issued in denominations less than $1 during times of financial stress (when coins were hoarded and unavailable) to help businesses make change for their transactions. In general, this scrip was only accepted locally. (For information on scrip issued from the Panic of 1873 to the Great Depression of the 1930s, see the Collecting U.S. Depression & Panic Scrip home page).

Sources

• Bowers, Q David. Obsolete Paper Money Issued by Banks in the United States, 1782-1866. Atlanta, GA: Whitman Pub, 2006.
• Haxby, James A. United States Obsolete Bank Notes 1782-1866 (4 volumes) Iola, WI: Krause Publications, 1988.
• Hewitt, R. Shawn A History & Catalog of Minnesota Obsolete Bank Notes & Scrip. New York, NY: R.M. Smythe & Co, 2006.
• Cohn, Maynard "Eccentric Denomination Notes" in Paper Money, No. 82, July/Aug 1979, SPMC, p218-219.