INTRODUCTION

Abraham Lincoln signed the National Bank Act in 1863 to raise money for the Civil War. It encouraged private banks to apply for federal charters, making them “national banks,” which could issue “National Bank notes.” To receive their charter, the bank purchased bonds, which supported the war effort. They could then issue notes for up to 90 percent of the bonds’ value. These notes, secured by the bonds, were more stable than previous, privately-issued notes. Each bank charter was renewable in twenty-year periods. Initially issued in denominations from $5 to $1000, $1 and $2 notes were added in 1865.

From 1863 to 1929, eight distinct types of National Bank notes were issued in three charter periods. The first charter period contained Original Series and Series 1875 designs. The second period (Series 1882) included Brown Backs, Date Backs and Value Backs. The third period (Series 1902) comprised Red Seals, Date Backs and Plain Backs. Collectively, these are known as “Large size” notes (approx. 7 3/8” x 3 1/8”)
as opposed to modern “Small size” notes first issued in 1929.