This listing is for the photographed 1807 10 Dollar Obsolete Banknote Issued by the Hillsborough Bank of Amherst NH. Issued January 1st, 1807, and collected/deposited on March 28th, as identified by the writing on the reverse of the note. These types of obsolete notes typically do not have additional writing on the reverse as seen in this note, adding to its value. The note reads “The President, Directors, & Company of the Hillsborough Bank promise to pay [D. Gore] or bearer on demand, Ten Dollars, Amherst, Jan 1, 1807.” The note is signed by the bank’s cashier, Dave Holmes, and the bank’s president, Samuel Bell. This note is in excellent condition, making it a wonderful addition to any collection! This note is 217 years old this year!
The Hillsborough Bank was founded on June 18, 1806, and capitalized with 50,000 dollars. The notes were printed using Jacob Perkins’s “Permanent Stereotype Steel Plate” that prevented forgery. The bank only lasted three years, as it extended its currency beyond its reserves, and the Embargo Act of 1807 stymied New England’s trade. When note holders came to collect their specie, the bank could not fulfill its obligations and was forced to shut down.
From 1790 to 1863, states and private banks issued their own currency to supply capital in a young nation without a national currency. This currency was backed by the hard money the banks had on deposit, and was only used locally where the bank and its operators were trusted in the community. However, banks often oversupplied notes, and this overextension caused bankruptcy among private and state banks when financial panic struck, particularly in 1837. Currencies from these failed banks are often known as “obsolete bank notes” or “broken bank notes”.
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1807 Hillsborough Bank Ten Dollar Banknote - New Hampshire Obsolete - Early American Banknote - 1807 Ten Dollar Obsolete Note Amherst NH