1833 Essex Bank 1 Dollar Guildhall Obsolete Note - Vermont Obsolete Currency - Guildhall, VT - 1833 Vermont One Dollar Obsolete Banknote

This listing is for the photographed 1833 The Essex Bank 1 Dollar Vermont Obsolete Banknote. Dated August 18th, 1833, issued in Guildhall, Vermont. Signed and issued, the ink used for the date has been contaminated since the notes issuance, which has made it appear purple in color. This purple tint can occur with iron gall ink, which was most commonly used for writing in this period and happens when the ink oxidized overtime or has been exposed to certain chemicals. Vignette of allegorical figures, one hammering on an anvil that says, "Public in the Pledge", with a sailing ship in the background displayed at the center of this note. Beautiful and clear designs! Very Good (VG) grade/condition, fragile condition with several signs of circulation and several paper reinforcements used on the reverse, as pictured. Great piece of history!

The Essex Bank was chartered in the October 1832 session of the Vermont State Legislature with a capital of $40,000, which was divided and distributed in 1000 $40 shares. The bank was subject to the provisions of the Safety Fund Act of 1831, according to its charter, which required that 50% of the bank's capital stock be paid back before making any discounts. They successfully paid the $20,000 required by the act, opening its books and electing its board of directors by April 15th, 1833. Its main location of operation was in the east section of the present-day Guild Hall building, before the two buildings were joined to make Guild Hall as it stands today in 1921. The first banknotes were prepared and issued in May of 1833. The bank experienced difficulty redeeming its banknotes, which led to them needing to obtain loans in Boston and elsewhere, many of them having high interest and low security. The shares of the bank were sold in their entirety in 1839 after the bank had been steadily failing for years. The bank officially closed their doors after only 6 years of operation in 1839. 

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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1833 Essex Bank 1 Dollar Guildhall Obsolete Note - Vermont Obsolete Currency - Guildhall, VT - 1833 Vermont One Dollar Obsolete Banknote