1808 Vermont State Bank Woodstock 1 Dollar Obsolete Note - Uncirculated Remainder - 1800s Woodstock Vermont One Dollar Obsolete Banknote

This listing is for the photographed 1800s (1808) Vermont State Bank Woodstock Branch 1 Dollar Obsolete Remainder Banknote. This note is an uncirculated remainder, meaning that it was never issued, having no signatures or issue date. This note was issued at the Woodstock Branch of the Vermont State Bank. The design of this note is similar to many other early obsolete banknote issues from local banks in New England through the early half of the 19th century. Almost Uncirculated (AU) grade/condition, little to no signs of circulation, crisp note! Great, rarer piece of history! Perfect addition to any collection.

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 Vermont State Bank was approved by the state legislature in 1806 with its original branches being in Woodstock and Middlebury. The next year two more branches were opened in Burlington and Westminster. The state banks incorporation was a controversial decision, with most of the state being split on whether they supported its creation or not. The supporters of the bank were mostly merchants in the Connecticut River Valley who had trade connections to Boston from the state and would benefit from a state-issued currency to improve their business prospects. Opposers to the bank were mostly morally based in their arguments, claiming that a state-backed bank would bring speculation to the state and would be a surrender to commerce and would create great wealth disparity among Vermont citizens. The bank proved successful at first, with many citizens giving their full trust to the institution by depositing their gold and silver in exchange for banknotes. But, this success was short lived, largely due to the publics overconfidence in the security of the bank. Large crowds of citizens began lining up outside of bank branches looking to borrow more money than they had deposited from the bank, which was possible due to legal loopholes in the banks incorporation statement. Legally, the bank could issue $3 for every $1 deposited in hard gold or silver, which led to state backed paper banknotes flooding the local markets that the state bank could not back. The overpopulation of state banknotes led to the rapid devaluation of the currency, but this issue was largely overshadowed by the major economic boom that was occurring at the same time. Trade embargoes enacted by President Thomas Jefferson due to the ongoing conflicts with Britain decimated the trade-reliant Vermont economy, which soon revealed the issue of the devaluation of the state backed currency. Local merchants began denying the use of state bank currency at face value, which eventually led to the banks demise by the start of the War of 1812. All of the branches were ordered to burn all of the remaining paper currency they had, making any remainders from the bank rare survivors of the bank!

Thanks so much for stopping by!

1808 Vermont State Bank Woodstock 1 Dollar Obsolete Note - Uncirculated Remainder - 1800s Woodstock Vermont One Dollar Obsolete Banknote