Picked up this rare piece at LCS. I love these old bills that are just after the civil war started. They just show so much history and to think that historical people might've touched these items-- really intrigues me. This one is from August 10, 1861. But wait: I got some history... like always! Although the individual states could not issue currency they did have the right to charter private banks that could then issue notes. From these private banks came a great flux of paper money that both oiled and clogged the wheels of commerce in pre-Civil War America. In addition to private banks, municipalities, transport companies, insurance companies, stores, et cetera, all issued scrip. The notes of these organizations were payable on demand and were only as strong as the bank or company itself. Thus, if too many notes would be presented at once a bank would simply close its doors and default. One expedient used to make it harder for the note holder to cash his bills was to locate the main office of the bank in an inaccessible place like a forest or swamp. This practice led to the term “wildcat” bank since the wildcat might be the only customer having easy access.
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