National Bank Notes (1863–1935)

National Bank Notes were issued from 1863 to 1935 by national banks — commercial banks chartered by the federal government under the National Bank Acts of 1863 and 1864. At their peak, more than 12,000 individual banks were authorized to issue currency, creating an enormous variety of notes that today represent one of the most fascinating fields in American numismatics.

The National Banking Acts

The National Currency Act (February 25, 1863) and the National Bank Act (June 3, 1864) established a system of federally chartered banks to replace the chaotic pre-war "free banking" era, in which individual state-chartered banks issued their own currency with little federal oversight. Under the new system:

• Banks could apply for a federal charter from the newly created Office of the Comptroller of the Currency
• National banks were required to purchase U.S. government bonds and deposit them with the Treasury
• In exchange, they received National Bank Notes — printed by the Bureau of Engraving and Printing — equal to 90% of the par value of their bond deposits
• Banks were responsible for redeeming their notes at par

To drive state banks into the new national system, Congress imposed a 10% tax on state bank notes in 1865, making it uneconomical for state banks to continue issuing currency. Almost overnight, state bank notes disappeared from circulation — a dramatic example of federal power reshaping the monetary system.

Design and Variety

National Bank Notes were printed by the BEP with a standardized design framework, but each note included the name and location of the issuing bank, its charter number, and unique serial numbers. The BEP used common vignettes (pictorial scenes) on the backs, while the fronts included the bank's name prominently. This means that a $10 National Bank Note from the First National Bank of San Francisco and a $10 National Bank Note from the First National Bank of a small Iowa town use the same BEP-designed vignette but are entirely distinct notes.

Notes are generally organized by:

• Series: Original Series, Series of 1875, Series of 1882 (three types: Brown Back, Date Back, Value Back), Series of 1902 (three types), Series of 1929 (two types)
• Denomination: $1, $2, $5, $10, $20, $50, $100, $500, $1,000 (not all denominations issued in all series)
• State: Notes from "territorial" issuing banks (from territories before statehood) command significant premiums
• Bank: Notes from small-town banks with tiny issue quantities ("rare banks") command the highest premiums

Rarity and Value

National Bank Notes are collected by type, state, city, bank, and denomination. Rarity varies enormously. Notes from large New York and Chicago banks were issued in the millions and are relatively common. Notes from small banks in rural states — particularly states with small populations — may have surviving populations of fewer than a dozen known examples. Territorial notes (from banks in pre-statehood territories) are especially prized.

General value ranges:

• Common large-city notes in circulated condition: $75–$300
• Scarce state or city notes: $300–$1,500
• Rare bank notes: $2,000–$25,000+
• Territorial notes: $5,000–$100,000+

End of the Era

The Banking Acts of 1932 and 1935 restructured the bond collateral requirements, making it unprofitable for banks to maintain the bond deposits needed to issue National Bank Notes. The last National Bank Notes were printed in 1935, and the era of bank-specific currency ended. All National Bank Notes are still legal tender today.

Source: National Bank Notes Census · Hickman, John, and Dean Oakes. Standard Catalog of National Bank Notes. Krause Publications, 1982.