This listing is for the photographed 1861 Bank of Tennessee 50 Cent Banknote. Issued during the Civil War, Spanish 4 Reales design in the upper corners of the note. Great piece of history.
The design featured on the reverse of Spanish 4 Reales coins is displayed twice on this note, indicating its worth in terms of Spanish Reales, which were commonly used as a form of currency until the Civil War. Spanish silver currency was legal tender in the U.S. until 1857, so this was likely added as a reference point for the new currency.
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.
Thanks so much for stopping by!
1861 Bank of Tennessee 50 Cent Civil War Era Banknote - Tennessee Obsolete Currency - Confederate Currency - 1861 Fifty Cent TN Banknote