By Allen Rowe – Northern Nevada Coin ……
In 1863, the National Banking Act birthed forward a new type of currency in the United States. These notes were issued by the government for National banks. A National Bank put United States Bonds on deposit with the Treasury Department and then had notes printed against that deposit. Printed in both large and small formats, this paper money was issued up until 1935 when other types of currency replaced them in circulation. These notes were issued in States, Provinces, Territories, and even Indian Territories. A note would bear the name of the issuing bank as well as the city and state, province, or territory it was issued.
This type of paper money currency created a host of ways for collectors to collect old notes. A person can collect paper money from most major cities or notes issued from their own state. Some people collect notes bearing odd names or even their own names.
Most of the western states have a host of rare bank notes as the population was much lower and many in the American West preferred hard money (specie) to paper money (fiat). In Nevada, there were 16 issuing banks in 13 different cities. Two of the issuing charters changed their name during their issuing period, making a total of 18 different possibilities in names on Nevada bank notes. There are also large and small format paper money issued by some of the banks, and possibly several different types of notes.
Nevada bank notes are considered rare in collectors’ eyes. Reno is the only common bank in the state and even Reno notes will fetch at least $1,000. Other towns or cities issuing banknotes in Nevada are Austin, Carson City, East Ely, Elko, Ely, Eureka, Goldfield, Lovelock, McGill, Rhyolite, Tonopah, and Winnemucca. Banks issued $5, $10, $20, $50 and $100 denominations, just as today.
Two of these issuing banks have not been discovered by the collector’s community yet. Those are Rhyolite and Austin. To have one of either of these notes would mean a tremendous payday in the healthy six figures.
When our country left the National Bank note system these notes went into receivership, meaning that as notes were turned into banks they were destroyed. In Nevada, many of the banks issued relatively few notes, and with years of receivership, it is certain that most of the original notes have been lost forever.
But a few still survive. If you are lucky enough to have a Nevada bank note it might be wise to check it out as I can pay between $10,000-$100,000 for many of the rarer Nevada notes, and there is a host of those that would be in the $40,000-$100,000 range.
Not a bad return for a note forgotten about, saved or lost for around the last 100 years.
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About Allen Rowe
I have been interested in coins since I was about the age of 10, and the coin bug was always been in my blood. After graduating from the University of Nevada Reno, I decided to follow my heart. In 1993 I formed and incorporated Northern Nevada Coin and Bullion, d/b/a as Northern Nevada Coin. After all these years I still look forward to going to work – and especially which new coins I will get to see that day. Having handled nearly every coin that had been minted in the United States and many great foreign rarities, experience has taught me to appreciate every aspect of collecting and dealing in coins.
Northern Nevada Coin specializes in all Carson City coins, all silver dollars, US gold coins from 1795-1933, rare or key date type coins, and high-grade US coins. Coins we especially like to buy are Carson City coins, C- and D-mint gold, rare O- and S-mint issues in gold, high relief issues, territorial gold, and high-grade gold in all denominations. We also want to buy all major silver dollar errors.
Our mission is to serve our community with integrity, but also to create a destination for all coin collectors. Being located next to the Carson City Mint, we aim to make your rare coin experience the best it can be when you visit Northern Nevada Coin.
This is a great piece.
The are some awesome videos on You tube that will give additional insight.