This listing is for the photographed 1841 Northampton Bank 5 Dollar Pennsylvania Obsolete Note. Very torn and in fragile condition. Center vignette of a beehive and flowers. To the left and right of center vignette are Roman inspired profiles with the note's denomination inside. Left and right end also include Roman inspired profiles, being minorly obstructed by the fragile and torn condition of this note. Great piece of history and beautiful designs!
This note was issued on May 2nd, 1841, in Allentown, PA. Hand signed and dated. The Northampton Bank operated in Pennsylvania from 1814 to 1843. After the great flood of 1841 in Pennsylvania, the state government required banks to pay debts in gold and silver, causing a lot of banks to go under in the years after the flood. The president of the Northampton Bank had frauded his debts to the government by faking gold coins, which eventually led to the banks closure in 1843. The failure of the bank caused immense economic upheaval across the state, as citizens had relied on the bank for decades before the flood. This note was issued a few months after the Great Flood and provides a great insight into the economic history of PA and the Northampton Bank! Must have for 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.
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1841 Northampton Bank 5 Dollar Banknote - Pennsylvania Obsolete Currency - Very Fragile - 1841 Five Dollars Allentown PA Obsolete Bank Note