1861 Bank of Orange County 5 Dollar Vermont Obsolete Note - Later 2nd Bank - 1861 Chelsea Vermont Orange County Five Dollar Banknote

This listing is for the photographed 1861 Bank of Orange County, Second Bank 5 Dollar Chelsea Vermont Obsolete Banknote. This note is from the later, second bank of Orange County, which bears the name "Bank of Orange County" rather than "Orange County Bank".  The note was issued on January 1st, 1861. The note features a vignette of a portrait of a boy at the right center, an allegorical representation of Liberty at the right end, and a scene of a farmer and horses at a stable at the left center. Very Fine (VF) grade/condition, visible folds and other signs of circulation, as pictured. Great, rarer piece of history! Perfect addition to any collection.

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 Bank of Orange County was first chartered by the Vermont State Legislature in 1827 under the name "Orange County Bank". They were located in the old bank building at 302 Main St in Chelsea Village, Vermont, the building still stands today. Their first issue of banknotes began circulating in the mid to late 1840s, and the notes were all printed with the name "Orange County Bank". In 1856 the bank was renamed "Bank of Orange County", and they began printing their second issue of banknotes, such as this one, under this new name. The bank operated as a local financial institution until it transitioned to the Orange County National Bank of Chelsea in 1865 under the National Banking Act of 1865. They continued operating as a National Bank until 1873. 

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1861 Bank of Orange County 5 Dollar Vermont Obsolete Note - Later 2nd Bank - 1861 Chelsea Vermont Orange County Five Dollar Banknote