Broken Bank Notes

[Grifter]

Ok, I read something about these broken bank notes, or wildcat notes, in my blackbook, but I can't find any in the book. Does anybody collect these, or have any info on them, because they sound very interesting.

[whohah]

These were notes issued by states, municipalities, counties/parishes, banks, railroads, insurance companies, individuals, etc., with only the thinnest of 'governmental' sanction prior to 1864 or so. They were literally 'promises to pay' with little or no backing. While some larger banks were credible and they did back up their notes, the vast majority were scams, or, at best, the product of minds with little regard to proper banking practices.

 

There was a 'catalog' of sorts put out by the Krause organization several years ago. It was the brainchild of a guy named Haxby whose name is still used in reference to this catalog set of 6 volumes [iIRC].

 

Unfortunately, 'Haxby' is out of print and used sets are quite expensive. Since it came out so long ago [15 years or so??], the prices in it are not really useful except as a broadly defined outline. Not too many of hoards of these notes have come out since its publication, so the prices can be used in a 'relative' manner. It is not complete, even tho it takes up 6 rather fat volumes. It is a great introduction to the whole subject of broken bank notes, tho.

 

The Society of Paper Money Collectors has had a long-time project of getting books published on a state-by-state basis. I think that after 35 years or so, they have about half the country covered. Their project covers more than just the notes of the 19th century [iIRC].

 

Most of the high grade pieces are from stocks of unissued remainders that were found and initially distributed in the hobby in the 1950's or so. There are still a great many uncut sheets of these remainders available for some quite reasonable prices.

 

These notes range from being very simple type-set notes to very elaborate engraved notes.

 

HTH...

[mmarotta]

“Banking practices prior to the mid 19th century were larcenous at best,” in the words of Krause Publications, advertising their Standard Catalog of United States Paper Money. Walter Breen called these fiduciary instruments “dishonest paper.” The Encyclopedia Americana says that they were “less than satisfactory.” The implicit claim that early America was a kleptocracy leaves much unanswered.

 

Why would otherwise intelligent people who wrote new constitutions, who created and hailed the telegraph and the railroad, who considered knowledge of Greek, Latin, and Hebrew a prerequisite to education, fall for such patently felonious schemes as wildcat banknotes?

 

In point of fact, these banks served important functions by providing a commodity in demand at a price that people were willing to pay. The paper money of wildcat banks operated according to unsurprising economic laws well known to the people of that time – as such laws are implicitly understood by all people in all times. The purpose of credit is to fund enterprise, and enterprise is risky. Money serves as a medium of exchange, and wildcat banknotes met that need, also. Their strengths as local currencies and their discounts farther from home are consequences of fundamental economic laws.

 

(From my undelivered paper intended for the San Francisco ANA Convention, 2005)

[mmarotta]

The Society of Paper Money Collectors has had a long-time project of getting books published on a state-by-state basis.  I think that after 35 years or so, they have about half the country covered.  Their project covers more than just the notes of the 19th century [iIRC].

 

Right, you are! The most recent is Wendell Wolka's

A History of Nineteenth Century Ohio Obsolete Bank Notes and Scrip

http://spmc.org/news/ohio.shtml

 

A good set of webpages is here from Brian Blackwell:

http://home.att.net/~brianblackwell/obsolete.htm

[Grifter]

Well, my dilemma is that my local coin shop doesn't have any of these notes. I'm very interested in collecting them, more so now than before I posted this topic.

 

So, do you two collect these notes, or do you just know about them?

 

Mmarotta, is this paper of yours just on wildcats, or is it on currency in general. Looks good from what I can see.

[mmarotta]

My paper is about wildcats, but putting them into a general historic and economic context.

 

I am not a collector, but I have pursued two series to help with my research.

 

If your local coin shop does not have them -- and does not want to acquire them for you; that is what dealers do, act as middlemen -- go to the ANA website (www.money.org) and find a dealer near you. Also, you can find dealers who specialize in these. Banknote Reporter and Coin World newspapers both carry ads for dealers who know the material. Some of them have written books and articles that we refer to. Others are just brilliant without publishing.

 

The Society of Paper Money Collectors should also be a bood resource for finding dealers.

 

Best of all would be to go to an ANA convention. The other equally good alternatives are the paper money conventions, sponsored annually by different dealers in Memphis, St. Louis and Chicago.

 

Any of the large numismatic retailers -- Heritage, Stacks' Superior, Lyn Knight (especially), Q. David Bowers' American Numismatic Rarities, etc. etc. -- ought be able to help and their websites are great resources.

[Monster110]

Sorry NO Clue