RARE 1831 2nd Bank of the United States 10 Dollar Banknote - Boston Branch - Second National Bank - 1831 Ten Dollar Boston MA Note

This listing is for the photographed 1831 Second Bank of the United States, Boston Branch 10 Dollar obsolete bank note. Issued by the Second National Bank at the rarer Boston Branch on June 18th, 1831. Vignette of an eagle perched on a shield at the center. Choice Very Fine (VF+) grade/condition, minor visible signs of circulation. Great, rarer piece of history. Excellent addition to 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.

The First Bank of the United States was founded shortly after the establishment of the country in 1791, championed by the founding father Alexander Hamilton. The bank was allowed to have branches in each state and lend money to the Federal government. This is different from other state-chartered banks that were established throughout the 19th century, as banknotes from the Bank of the United States could be used in any state that they had an operating branch in. The First National Bank was liquidated in 1811 at the expiration of their 20 year charter, with most of its stock and its building in Philadelphia being sold to Stephen Girard. The Second Bank of the United States was organized in 1816 under President James Madison with a 20 year charter. The bank operated under the same national bank concept as the First Bank, expanding their branches to the majority of states in the nation at the time. In 1817 the bank opened their Boston Branch, and by 1832 they managed over 25 branch offices nationwide. The Second Bank failed to get a renewed charter in 1832, likely because of the newly elected President Jackson's opinions against the establishment of a National Bank. The bank became a private corporation when their charter ended in 1836, undergoing a final liquidation in 1841. After the end of the banks charter in 1836, no national banks were allowed to operate again until the National Bank Act of 1865.

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RARE 1831 2nd Bank of the United States 10 Dollar Banknote - Boston Branch - Second National Bank - 1831 Ten Dollar Boston MA Note