This listing is for the photographed 1838 Philadelphia Loan Company 25 Cent Pennsylvania Banknote. Some staining and a tear at the top of the note, as photographed. Vignettes display the goddess holding the symbol of commerce on the far left, along with several engravings of cherubs. Great piece of history.
The Philadelphia Loan Company, established in 1836, only lasted 2 years before they closed with no assets in 1838. This note was likely one of the last issued by this company, making it an excellent unique addition to your 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.
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1838 Philadelphia Loan Company 25 Cent Fractional Banknote - Pennsylvania Obsolete Currency - 1838 Twenty-Five Cent PA Fractional Banknote