This listing is for the photographed 1807 5 Dollars Obsolete Banknote Issued by the Hillsborough Bank of Amherst NH. Issued January 14th, 1807. The note reads “The President, Directors, & Company of the Hillsborough Bank promise to pay [M. Lewis] or bearer on demand, Five Dollars, Amherst, Jan 14, 1807.” The note is signed by the bank’s cashier, Dave Holmes, and the bank’s president, Samuel Bell. This note is in great 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 5 Dollar Banknote - New Hampshire Obsolete - Early American Banknote - 1807 Five Dollars Obsolete Note Amherst NH