Recent Purchases: Tennessee Exchange Bank at Murfreesboro $1 & $2 Obsolete Banknotes

In recent weeks and months, I've been somewhat inactive due to personal responsibilities pertaining to both work and school. However, I've had the good fortune to acquire a pair of banknotes from a long-defunct local bank that went under in 1859.

Originally the Exchange Bank of Tennessee at Murfreesboro was established by William Spence, a former Murfreesboro alderman, and his brother Joseph Spence in 1852. Once the bank was established, William assumed the role of President while Joseph assumed the role of cashier. Initially, the bank operated with a capitalization of $50,000 that was later increased to $100,000.

The initial emission of banknotes in 1852 consisted of one and two dollar bills dated Nove. 1, 1852 (the bank's first day of business). These notes were printed by Wellstood, Hanks, Hay & Whiting of New York, who produced the $1 note, and Danforth, Underwood & Co., New York, who produced the $2 note. In addition, the bank also issued a $3 as well, which was a relatively common practice before the American Civil War. However, the $3 note has proven to be quite elusive in obtaining an example for my collection.

Regardless, the Exchange Bank of Murfreesboro continued to operate throughout 1859 when the bank failed and rendered its currency emissions worthless. The bank's woes began in 1857 when, according to the ("Annals of Rutherford County," Vol. 2, p. 108), problems arose from the mismanagement of state bonds. As a result of the bank's failure in 1859, the void would later be filled with the opening of a branch of the Planter's Bank of Nashville. However, the Murfreesboro branch of the Planter's Bank would close soon after the onset of the American Civil War.

With all that being said, if you have any obsolete banknotes from Tennessee or any banknotes from your local area, please don't hesitate to share your examples.

1852 $2 The Exchange Bank of Tennessee at Murfreesboro



1856 $1 The Exchange Bank of Tennessee at Murfreesboro



Sources:
Murfreesboro Daily News Journal, Remembering Rutherford: Rutherford County bank routinely issued three-dollar bills. https://www.dnj.com/story/news/2014...routinely-issued-three-dollar-bills/14513607/

 

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Congrats and nice looking notes for their age. Good history to go with them.

 

Bradley, when did you ever switch over to paper money?!

 

I've collected Paper Money ever since I was about 10 years old. World & Ancient coins are a much more recent expansion of my collecting interests. Regardless, my collecting interests are about as varied and less focused as @lordmarcovan, for example.

 

This is my only Tennessee note, but a lovely one. I really want to collect the post Civil War State issued notes that were issued up until 1889.

 

To that end, these notes were a pain to find, especially the $2 note. Finding an obsolete banknote from Tennessee, not from one of the State's four major urban centers, is somewhat difficult as one could expect.

 

I'll keep my eye out for a $3 for you.

 

Thank you, @Mountain Man. The last time one came up for sale, I was very narrowly outbid at the last second.

 

@techwriter love that cab-less locomotive that even in 1862 was an anachronism. It looks a lot like a mid 1830s Stevenson locomotive from Britain.

 

What a wonderful note! Love the look of it and the train, especially the engine.