This listing is for the photographed 1837 Phenix Manufacturing Company 50 Cent Philadelphia Obsolete Loan Note. Very torn and in fragile condition. Center vignette of a sailboat and horses on the obverse of this note. Great piece of history!
This note was issued on June 2nd, 1837, and has an entirely different design than that of later issues from this company, making it a rarer version of this company's loan notes!
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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1837 Phenix Manufacturing Company 50 Cent Loan Note - Pennsylvania Obsolete Currency - 1837 Fifty Cent Philadelphia Fractional Obsolete