1857 South Royalton Bank 2 Dollar Vermont Obsolete Note - Four Cancellation Holes - 1857 Royalton Vermont Two Dollar Obsolete Banknote

This listing is for the photographed 1857 South Royalton Bank 2 Dollar Vermont Obsolete Banknote. The note has been fully signed and issued, but the full date is illegible due to the notes circulation. A vignette of the Vermont state seal is featured on the left end of the note. Beautiful and clear designs! Very Fine (VF) grade/condition, some folds and signs of circulation, including four cancellation punch holes at the center of the note. Notes from the South Royalton Bank are rarer finds among obsolete currency, making this a must have for any collection! Great piece of Vermont history!

The South Royalton Bank was a notable institution in Vermont, as it was the only Free Bank established in the state during the "Free Banking era", which meant it was established without an official state charter, only organized by general state banking laws. The Free Banking Act was passed by the Vermont state legislature in 1851, and the bank was likely established shortly after its enactment. The bank proved to be successful, having a larger capital stock than the average state chartered bank. The South Royalton Bank also saw several lawsuits over various bank functions, decreasing their public reputability. The bank only lasted for seven years, likely failing due to the Economic Panic of 1857, as they closed in 1858. 

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.

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1857 South Royalton Bank 2 Dollar Vermont Obsolete Note - Four Cancellation Holes - 1857 Royalton Vermont Two Dollar Obsolete Banknote