This listing is for the photographed 1808 50 Cents Obsolete Banknote Issued by the Hillsborough Bank of Amherst NH. Issued on March 7th, 1808. The note reads “The President, Directors, and Company of the Hillsborough Bank promise to pay [Name] or bearer on demand, Fifty Cents, Amherst, Mar 7, 1808.” The note is signed by the bank’s cashier, Dave Holmes, and the bank’s president, Samuel Bell. This is one of the last issues of notes from this bank, adding to its rarity and value! This note is in great condition, making it a wonderful addition to any collection! This note is 216 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 in 1808.
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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1808 Hillsborough Bank 50 Cent Banknote - New Hampshire Obsolete - Early American Banknote - 1808 Fifty Cents Obsolete Note Amherst NH