1862 Peoples Bank 2 Dollar Derby-Line Obsolete Note - Vermont Obsolete Currency - Derby Line, VT - 1862 Vermont Two Dollar Obsolete Banknote

This listing is for the photographed 1862 Peoples Bank 2 Dollar Vermont Obsolete Banknote. Dated July 1st, 1862, issued in Derby-Line, Vermont. Signed and issued. Note displays a large red "2" under printed at the center, which is flanked on each side by oval portraits of allegorical women representing Abundance (left) and Justice (right). Portrait of George Washington displayed in the lower left corner of the note. Portrait of Benjamin Franklin printed in the lower right corner. Beautiful and clear designs! Very Fine (VF) grade/condition, some visible folds and signs of circulation, no repairs. Obsolete banknotes from the Peoples Bank of Vermont are rarer finds, making this an excellent addition to any collection! Great piece of history.

The Peoples Bank was established in 1851 in Derby-Line, VT. The bank provided locals with credit access, allowing for a boost in small independent businesses being established in the area. The bank became the National Bank of Derby-Line in 1865 when the Federal government urged smaller banks to cease issuance of their independent banknotes and replace them with national currency. In 1874 the National Bank of Derby-Line built a brick building in an Italianate style on Main Street to house their operations, the building is still standing today. The bank operated as the National Bank of Derby-Line until they purchased the Island Pond National Bank in 1975, when they changed their name to the Community National Bank, which is still in operation today, housed in the same Main Street building that was built in 1874.

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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1862 Peoples Bank 2 Dollar Derby-Line Obsolete Note - Vermont Obsolete Currency - Derby Line, VT - 1862 Vermont Two Dollar Obsolete Banknote