A question about an 1840 Bank of the United States note

Discussion in 'Paper Money' started by johnmilton, Jul 8, 2020.

  1. johnmilton

    johnmilton Well-Known Member

    Congress chartered the Second Bank of the United States in 1816 for a twenty year term. The bank became the object of President Andrew Jackson’s “bank war” which was the central issue of the 1832 presidential election. After two presidents, Andrew Jackson and John Tyler, vetoed a new charter for the bank, the bank lost its federal charter, but continued business as a Pennsylvania state bank. The bank failed in 1839 and was liquidated in 1841.

    Here is an interest bearing note that was issued by The Bank of the United States dated December 15, 1840. The note features a picture of the bank’s head office in Philadelphia. On the reverse of the note, there are stamps indicating that the interest was paid on this note until October 1, 1850. If the bank was liquidated in 1841, how can this be? Who was paying the interest? I have not been able to find an answer to this question. I would appreciate it if any of you could explain this. Thanks!

    BTW This note is PNG certified as an AU-55 EPQ.


    Bank of US $1000 Note.jpg Bank of US $1000 Note Back.jpg
     
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  3. physics-fan3.14

    physics-fan3.14 You got any more of them.... prooflikes? Supporter

    I believe your answer may lie in the wording of the final stamp "Final dividend under Trust of 1st May, 1841."

    I suspect when the bank was liquidated, its assets were purchased by another bank and a trust was created whereby the obligations would still be served. Whichever new bank bought the assets, or controlled the trust, would be paying out the dividends.
     
  4. Robert Ransom

    Robert Ransom Well-Known Member

  5. Mountain Man

    Mountain Man Well-Known Member

    I believe that what @physics-fan3.14 stated it the most likely reason but the position of the dated stamps is a little confusing.
     
    PlanoSteve likes this.
  6. Cheech9712

    Cheech9712 Every thing is a guess

    I really got to learn to write like that.
     
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