1849 Bank of Montpelier 3 Dollar Vermont Obsolete Note - Rare Bank Issue - 1849 Montpelier VT Three Dollar Obsolete Banknote

This listing is for the photographed 1849 Bank of Montpelier 3 Dollar Vermont Obsolete Banknote. This note was issued in Montpelier, Vermont in January of 1849, the exact date is difficult to read because the ink is faded. The obverse of this note features a vignette of a man fishing in a river on the left end, an allegorical representation of Abundance seated beside a bald eagle at the center, and a sailor standing beside barrels on a dock at the right end. Very Fine (VF) grade/condition, some visible signs of circulation, as pictured. Surviving notes from the Bank of Montpelier are rarer finds, making this note a must have for any collection! Excellent, interesting piece of Vermont history!

Obsolete bank notes are also called "broken bank notes." In the days prior to the Federal Reserve, any bank could produce currency for use by the clients and members of the community. Unfortunately, not many safeguards were taken to ensure that banks stood behind the currency they were producing and circulating. Banks, more often than not, failed and their currency was rendered worthless. As a result, most bank notes of the period did not trade at their full retail value. Oftentimes notes were worth 50 cents on the dollar because the public expected the banks to fail.

The Bank of Montpelier was chartered by the Vermont State Legislature in 1825 with a capital stock of $50,000. Its capital was fully paid within the year, with the bank beginning operations in 1826. The bank proved to be successful among the locals during their first decade of operation, so much so that they were rechartered with an increased capital of $75,000 in 1840, which again increased to $100,000 in 1853. The bank continued successfully supporting the Montpelier economy until 1865 when they transitioned to the Montpelier National Bank in accordance with the National Banking Act of 1865. 

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1849 Bank of Montpelier 3 Dollar Vermont Obsolete Note - Rare Bank Issue - 1849 Montpelier VT Three Dollar Obsolete Banknote