National Bank Notes, sometimes referred to as “hometown notes”, were issued by local banks that are chartered by the U.S. government. This system was developed to overcome fraudulent banknotes that were passed by institutions. The banks were required to maintain a redemption fund in gold or “lawful” U.S. currency.
William Youngerman buys and sells a huge amount of national bank notes from a variety of geographic locations. National Bank notes in good condition can often carry tremendous value depending upon from where it came and which bank issued the note.
To reserve your national bank note or if you have one that you would to sell or have appraised, call William Youngerman at 1-800-327-5010 today!
Before the Civil War, state banks and private banks issued their own bank notes with little oversight. This lead to to fraudulent institutions offering banknotes that were not backed by anything leaving them worthless.
In 1863, the U.S. established National Banks which could issue bank notes under stricter oversight and federal regulations. The notes had to be backed by bonds, and the banks were able to issue bank notes with a value of up to 90% of the bonds that the banks had deposited. This lead to the notes being backed by the federal government.
There were a lot of design and size variations in bank notes during the earlier days of them being issued. Up until the very end, all national bank notes were large sized and had a few features in common. They were required to feature the bank’s national charter number and the serial number of that particular note.
In place of “The United States of America”, bank notes would typically display the name of the issuing bank. The people displayed on the bank note could vary as well, differing from the typical historical figures that you see on today’s U.S. currency.
Once the smaller banknotes started to come around so did significant design changes. All denominations were now required to display same portrait and many of the same design features that you would see on other U.S. currency. The name of the issuing bank was now just stamped on top of the banknote, along with the bank’s charter number.
National bank notes were retired from circulation in the 1930’s and were turned into federal reserve notes as well as U.S. notes and silver certificates.
National bank notes are very collectible and hold tremendous value to paper money hobbyists around the world but especially in the U.S. William Youngerman buys and sells a variety of national bank notes and can help you when it comes to buying bank notes as well as selling ones you may own. To buy or sell a national bank note call William Youngerman today!