1850 Orange County Bank 5 Dollar Vermont Obsolete Note - Earlier 1st Bank - 1850 Chelsea Vermont Orange County Five Dollar Banknote

This listing is for the photographed 1850 Orange County Bank, First Bank 5 Dollar Chelsea Vermont Obsolete Banknote. This note is from the earlier, first bank of Orange County, which bears the name "Orange County Bank" rather than "Bank of Orange County".  The note was issued on July 4th, 1850. The note features a vignette of a man wearing a toga standing next to cows at the center, a classical greek style vase on the right end, and a bald eagle and "E Pluribus Unum" banner on the left end. Very Fine (VF) grade/condition, visible folds and other signs of circulation, as pictured. 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 Orange County Bank was first chartered by the Vermont State Legislature in 1827. They were located in the old bank building at 302 Main St in Chelsea Village, Vermont, the building still stands today. Their first issue of banknotes began circulating in the mid to late 1840s, and the notes were all printed with the name "Orange County Bank". In 1856 the bank was renamed "Bank of Orange County", and they began printing their second issue of banknotes, such as this one, under this new name. The bank operated as a local financial institution until it transitioned to the Orange County National Bank of Chelsea in 1865 under the National Banking Act of 1865. They continued operating as a National Bank until 1873. 

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1850 Orange County Bank 5 Dollar Vermont Obsolete Note - Earlier 1st Bank - 1850 Chelsea Vermont Orange County Five Dollar Banknote