I walked into a coin store the other day and something I saw caught my eye. And unusually it was currency, or at least I think it was. It was a one dollar note issued not by a Bank or the US Goverment, but by a railroad. The Fort Wayne and Southern if memory serves. I am a HUGE railroad fan and I did not even know these were issued. they wanted $500 for it. It did look in remarkable condition. No idea if it was worth that. I assume these are privately issued currency, but why would a railroad issue them. What did the railroad use to back them? I saw no silver promisary note. Just Curious.....
I have a few Railroad Notes from the South Carolina and Tallahasse Railroad Companies. Many of these were issued as fares to ride "x" number of miles.... My son likes Trains as well and that is the reason I bought them...and yes, they trade for a nice chunck of change! Check out my collection and you will see the two sets of notes. Regards, RickieB
These notes were backed by Railroad property and real estate. Railroad notes and scrip circulated better than a lot of bank paper. In 1866 the Federal Government put a heavy tax on private issuers like railroads. By calling their notes fare tickets they got around the law. There are a couple of hundered railroads that issued bank notes in the 19th. century.
