1800s Farmers Exchange Bank 10 Dollar Rhode Island Obsolete Note - Rare Early Obsolete Remainder - 1800s RI Ten Dollars Obsolete Banknote

This listing is for the photographed 1800s Farmers Exchange Bank Rhode Island 10 Dollars Obsolete Banknote. This is a rarer remainder note, having no issue date or second signature, only including a signature from the bank's president. This is a rare early obsolete note, being printed some time before the bank itself closed in 1809. Very Fine (VF) grade/condition, some visible folds and other signs of circulation. Excellent rarer note that that has an interesting history!

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 Farmers Exchange Bank was organized in 1804 in the village of Chepachet, Gloucester, Rhode Island with a capital of $100,000. It was one of the first banks to establish themselves in the area. Likely because of the lack of established knowledge about local banking practices, the bank suffered significant mismanagement and overprinting of banknotes leading to financial problems throughout the area. The bank issued more notes than their assets could cover, forcing the bank to close abruptly on March 24th, 1809. Their closure caused financial panic at neighboring banks and formed a general attitude of distrust towards paper currency across the nation in the following years. The Farmers Exchange Bank is remembered today as the first bank in the United States to fail, highlighting the importance of proper bank management among local independent banks issuing paper banknotes. 

Thanks so much for stopping by!

1800s Farmers Exchange Bank 10 Dollar Rhode Island Obsolete Note - Rare Early Obsolete Remainder - 1800s RI Ten Dollars Obsolete Banknote