From Shop Numismaster: Collecting National Bank Notes By Arlyn G. Sieber, Warman’s Coins and Paper Money October 24, 2011 Excerpted from Warman's Coins and Paper Money, 5th Edition by Arlyn G. Sieber, available from ShopNumismaster.com. "National bank notes were a collaboration between private, nationally charted banks and the U.S. government. Individual banks could invest in U.S. bonds and, in return, receive paper money with a face value equal to their investment. The federal government designed and printed the notes. Designs were the same for each bank, but notes were imprinted with the name and charter number of the national bank receiving them. Some early notes also bear the coat of the arms of the issuing bank’s state. National bank notes, titled "National Currency" on their faces, were legal tender anywhere in the United States and could be redeemed at the issuing bank or the U.S. Treasury. Notes redeemed at the Treasury were charged against the issuing bank’s bond account. More than 1,300 national banks issued notes. There were three periods during which banks could apply for a 20-year nationally issued charter: (1) 1863-1882, (2) 1882-1902, and (3) 1902-1922. Banks could issue notes under the first charter period until 1902, under the second charter period until 1922, and under the third charter period until 1929. Notes issued under each charter period have different designs (frsbf.org photos)." First Charter Period (1863-1882): http://www.frbsf.org/currency/industrial/first/746.html Second Charter Period (1882-1902): http://www.frbsf.org/currency/industrial/second/347.html Third Charter Period (1902-1922): http://www.frbsf.org/currency/industrial/third/786.html Like all other U.S. paper money, national bank notes were reduced in size in 1929. Type 1 notes (1929-1933) list the charter number on the face twice. Type 2 notes (1933-1935) list it four times. TYPE 1 - 2 Numbers On Face (banknotes.com photo): http://www.banknotes.com/USMI3547.JPG TYPE 2 - 4 Numbers On Face (birminghammichiganbank.com photo): http://www.birminghammichiganbank.com/image052.jpeg National bank notes were discontinued in May 1935 when the Treasury recalled many of the bonds in which the national banks had invested. Nationals have been among the most sought-after notes in a generally active U.S. paper-money market. Not all nationals of a given type have the same value; notes of certain states and cities are more popularly collected than others. Also, some banks ordered only small quantities of notes. The values listed in price guides are for the most common and least expensive banks issuing that type of note. Large-size nationals from Alaska, Arizona, Hawaii, Idaho, Indian Territory, Mississippi, Nevada, New Mexico, Puerto Rico, and South Dakota are worth more. The same is true for small-size nationals from Alaska, Arizona, Hawaii, Idaho, Montana, Nevada, and Wyoming. Let's look at some of those scarce issues: LARGE SIZE NATIONALS: Arizona (perakiscurrency.com photo): http://perakiscurrency.com/notes/photo.php?photo[0]=a006238a.jpg&photo[1]=a006239a_b.jpg Hawaii (goldbergauctions.com photo): http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=54&lot=1599 http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=54&lot=1602 New Mexico: http://www.perakiscurrency.com/notes/photo.php?photo[0]=9.21.10.55.jpg&photo[1]=9.21.10.56.jpg http://www.perakiscurrency.com/notes/photo.php?photo[0]=9.21.10.71.jpg&photo[1]=9.21.10.72.jpg http://www.perakiscurrency.com/notes/photo.php?photo[0]=9.21.10.59.jpg&photo[1]=9.21.10.60.jpg http://www.perakiscurrency.com/notes/photo.php?photo[0]=February_18_2009_(116).jpg&photo[1]=February_18_2009_(117).jpg Puerto Rico: http://www.banknotes.com/PR7.JPG SMALL SIZED NATIONALS: Hawaii (goldbergauctions.com photos): http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=54&lot=1631 http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=54&lot=1638 http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=54&lot=1646 http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=54&lot=1654 Montana: http://www.frbsf.org/currency/industrial/third/786.html Nevada: http://www.perakiscurrency.com/notes/photo.php?photo[0]=10.13.11.jpg?&photo[1]=10.12.11.2.jpg Wyoming: http://www.perakiscurrency.com/notes/photo.php?photo[0]=f002439a.jpg&photo[1]=f002439a_b.jpg http://www.perakiscurrency.com/notes/photo.php?photo[0]=a000540a.jpg&photo[1]=a000540a_b.jpg http://www.perakiscurrency.com/notes/photo.php?photo[0]=f000566a.jpg&photo[1]=f000566a_b.jpg ADDENDUM BONUS: At different times in American History Change (coinage) was in short supply. This often occurrance also happened in New York State during the National Bank Note era. It is my pleasure to introduce you to some of those issues produced in 1862 by three different banks: (banknotes.com photos) http://www.banknotes.com/ew3.jpg http://www.banknotes.com/ew4.jpg http://www.banknotes.com/ew5.jpg http://www.banknotes.com/ew6.jpg http://www.banknotes.com/ew7.jpg Here's three issues by the Bank of Poughkeepsie: http://www.banknotes.com/ew19.jpg What were the coins in circulation in 1865? 1862 Indian Head Cent (flikr.com photo): http://www.flickr.com/photos/mattzcoz/3299230506/ 1862 Three Cent Piece (coinpage.com photo): http://www.coinpage.com/coin-image-3462.html 1862 Half Dime (coinpage.com photo): http://www.coinpage.com/coin-image-4911.html 1862 Dime (coinpage photo): http://www.coinpage.com/coin-image-3796.html 1862 Quarter (coinpage photo): http://www.coinpage.com/coin-image-2624.html 1862 Half Dollar (goldbergauctions.com photo): http://images.goldbergauctions.com/php/lot_auc.php?site=1&sale=39&lot=1450 Hope you enjoyed visiting America's Bank Note Historic past... Clinker
Rest easy, Clinker. Even now, you have taught somebody something new. When it's my time, I'll be looking for you.
