1859 Bank of Troy 5 Dollar Obsolete Note - Vermont Obsolete Currency - Unissued Remainder - 1859 Troy Five Dollars Obsolete Banknote

This listing is for the photographed 1859 Bank of Troy 5 Dollar Vermont Obsolete Banknote. Dated October 15th, 1859, issued in Bennington, Vermont by a bank that operated in Troy, New York. Unissued Remainder. Center vignette of a farmer and animals in a field with a stone wall and farmhouse behind them. Almost Uncirculated (AU) grade/condition, some minor signs of wear due to age. Excellent find for notes of this age! Great piece of history.

This note is particularly interesting because it was issued by a bank who operated in Troy, New York, but it's location of issuance is printed as Bennington, Vermont. One theory as to why this occurred is that these notes were printed by local businesses in Bennington to be used as merchant scrips, and these businesses held accounts at the Bank of Troy, explaining the prominence of the banks name on the note. Incredibly interesting history showing the different banking practices used before the regulation of paper currency in the United States!

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.

Thanks so much for stopping by!

1859 Bank of Troy 5 Dollar Obsolete Note - Vermont Obsolete Currency - Unissued Remainder - 1859 Troy Five Dollars Obsolete Banknote