A recent interest of mine has turned to collecting and researching banknotes issued by municipalities, states, banks, railroads, coal companies and even National Banks in contravention of the National Banking Act of 1864. These notes were issued from the cessation of the Civil War in 1865 up to as late as 1896, and usually in the South of the country. But there are known examples from New England, Missouri, Kansas, etc. Technically speaking they are referred to as "obsoletes", but really they are something different as they were issued in the post Civil War era when legally speaking most if not all of them were not quite legally issued under Federal law. In the American South there were not many banks that survived the obsolete era intact to become National Banks, and money was very scarce after the war. States like Louisiana, Mississippi, and Florida had "carpetbagger" governments that resorted to issuing paper money in the interests of getting the economies flowing again. Similarly some railroads, coal mining concerns issued paper money in the guise of "fare receipts" or "value received" notes. Municipalities got in on the action and issued their own - sometimes these issues were remarkably similar in colour and design to Federally issued currency. Notice that this City of Mobile note is even printed by American Banknote Company. This issuer was issuing notes as early as 1865, and as late as this 1875 issue. I wonder if the City of Mobile would still be legally obligated to redeem this note? The note has a very fascinating vignette, which, well was the reason I purchased it for my collection. This vignette was used on this "carpetbagger" issue from Mobile, but also on a note issued in Memphis Tennessee after the War. In essence it appears to be a depiction of The Union embracing and welcoming the South back into the fold, whilst the swords of conflict are cast to their feet. However if you view this vignette from the note closely you will notice the exaggerated features of the agricultural workers(no doubt so called sharecroppers) which were quite typical of the time.
Both of those are great notes! You don't see many Reconstruction era obsoletes -- they look very similar to federal currency from the period. These notes were not issues by banks, one was municipal, one was a private company, and I think that's how they got around the law.
Ah but the most serious violator is yet to come after I work on it's image - it is a very clear violation of the National Banking Act.
And to be a complete PITA, the images are done - but the research into it's history and it's illustrious issuer goes on.
