RARE 1850s Bank of Castleton 20 Dollar Vermont Obsolete Note - Uncirculated Remainder - 1800s Castleton VT Twenty Dollar Obsolete Banknote

This listing is for the photographed 1850s Bank of Castleton 20 Dollar Vermont Obsolete Remainder Banknote. This is an uncirculated remainder note, meaning that it was never signed or issued into circulation, having no signatures, date, or serial numbers. The note does have cancellation punch holes along the bottom, which were added after the bank closed to ensure that they could not be falsely issued. The vignettes featured on the obverse of this note include a steam train locomotive going through a tunnel at the center, two allegorical women representing Justice and Agriculture flanking the Vermont state seal are printed in the lower right end. Uncirculated (UNC) grade/condition, no signs of circulation, but it does have cancelled punch holes at the bottom, crisp note! Notes from the Bank of Castleton are rarer finds among obsolete currency because the bank was short lived, making this a highly sought after and valuable find! Great piece of Vermont history!

The Bank of Castleton was organized by the Vermont State Legislature in 1852 with a capital stock of $100,000. The town of Castleton, Vermont experienced an economic boom in the early 1850s as a result of two railroads establishing stops in the town at the same time, leading to a need for a financial institution, resulting in the Bank of Castleton's creation. The bank was located in the eastern section of the town, where the town offices are located today. The Bank of Castleton closed in 1859 and was shortly after replaced by the Mutual Bank of Castleton, which later became the Castleton National Bank in 1865. The short lived operation of the Bank of Castleton resulted in only a limited number of their bank notes going into circulation, leaving the rest as remainders that were cancelled with punch holes after the banks closure.

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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RARE 1850s Bank of Castleton 20 Dollar Vermont Obsolete Note - Uncirculated Remainder - 1800s Castleton VT Twenty Dollar Obsolete Banknote