Obsolete United States Paper Currency
Before the Civil War, the United States government did not issue paper money. It was generally held that it would violate the Constitution. Instead, paper money was issued privately by banks and other firms throughout the country. No one had to accept it. People were at liberty to refuse any note if they thought the issuing bank unsound or unfamiliar, or simply too far away. Usually these notes would simply pass from one consumer to another as modern government-issue notes do. Sound banks keep coin reserves on hand to back the notes and this is why bust half dollars are commonly available in high grades today. Some fraudulent banks released notes without any backing at all. "Obsoletes" were produced in especially large numbers in the 1830s and 1850s. These notes ceased to be issued in the 1860s when many of the banks wet bankrupt and others simply redeemed the notes and stopped issuing them. This is why today they are called obsolete note: or more informally, broken bank notes. They are a wonderfu way to trace local history. Many of the vignettes are artistic and represent local industries such as shipping or cotton. Others have generic patriotic vignettes provided by the printer. Some even show their value in coins: a $1.25 note would show pictures of two half dollars and a quarter. Most notes are one- sided.
Known Counterfeits: Many notes were counterfeited at the time. These counterfeits are of some value but usually less than the real ones. Also, some authentic notes were stamped "counterfeit" by rival banks so they would not have to honor them. Another scam of the day was the passing of "raised" notes. A counterfeiter would take the value numbers from a high-value note and glue them to a note of a lower face value. Such notes will often feel too thick or where the values were attached. They are collectible, but of less value than unaltered notes. Most "Bank of the United States" notes of this period are modern replicas, particularly those of high denomination. They may be identified by their crackly, brownish-yellow paper. Real notes are printed on thin, limp paper.
