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Antebellum  Era  Loans

Due to the enormous political opposition from President Andrew Jackson, the United States would find itself without a "Hamiltonian" national bank by the Winter of 1836.  Jackson had no interest in renewing the Bank of the United States' charter, and had campaigned on as much in the election of 1832.  In the wake of Jackson's decision, a financial crisis ensued: the Panic of 1837.  Relaxed lending standards, Western land speculation, a decline in cotton prices, and financial events oversees all contributed to this seven-year long recession.  Presented below is a rare example of an Interest Bearing Note from this period.

 

In 1845, the Republic of Texas was annexed by the United States.  Although Texas had declared its independence from Mexico a decade earlier, Mexico had never reconciled this. The country was rife with internal political turmoil, and it still had designs on keeping territory in California, despite America's expansionary policy. President James Polk offered to settle disputes concerning the Rio Grande and purchase additional territory for the United States, but Mexico rebuffed all attempts at negotiations. In 1846 war broke out between Mexico and the United States. After two years of fighting and thousands of casualties, the United States prevailed.  In the Treaty of Guadalupe Hidalgo, Mexico ceded its claims to Texas, and gave up ownership of California, along with territory in what is today New Mexico, Arizona, Nevada, Utah, Wyoming, and Colorado. The war cost the United States over $70 million, and Congress authorized issuance of both short-term Treasury Notes and long-term Treasury Bonds to raise needed revenues. There are very few surviving examples of loans from this period, some of which are presented below.

One-year Interest Bearing Note of 1837  Loan Specimen

This one-year loan did not have a fixed interest or par denomination printed on the note.  Authorized by a loan act of October 12, 1837, these non-denominated certificates allowed for the Treasury to retire previous debts, which would be at varied dollar amounts when principal and interest were accounted for. Printed by Rawdon, Wright & Hatch of New York.

 

Possibly unique

$1,000 Registered Loan of 1847 

Six Percent, Twenty-year Loan Specimen

Paid semiannually, this loan was printed for issue in the 1850's. Unlike several known proof examples (not intended ever to be issued) from this time period, this is an actual bond.  As it is unissued, it is given the numismatic distinction of being a "remainder."  It prominently features an engraving of not only the bald eagle at its top center, but representations of the States' seals as well.  Printed by Rawdon, Wright, Hatch & Edson of New York.

The finest of three known examples 

$2,000 Registered Loan of 1847

Six Percent Twenty-year Loan Specimen

This loan, paid semiannually, was printed for issue in the 1860's.   This loan certificate bears the hallmarks of

 the AmericanBank Note Company of New York, along with the firm of Rawdon, Hatch & Edson of New York.

 

Possibly unique

$100 Registered Loan of 1848

Six Percent Twenty-year Loan Specimen

This loan, paid semiannually, was authorized by a Congressional Act of March 31, 1848.  

Printed by Toppan, Carpenter and Company of Philadelphia & NY.

 

A example of this loan exists as a proof; this specimen is possibly unique

$200 Registered Loan of 1848

Six Percent Twenty-year Loan Specimen

A example of this loan exists as a proof; this specimen is possibly unique

$5000 Registered Loan of 1848

Six Percent Twenty-year Loan Specimen

Printed by Rawdon, Wright, Hatch & Edson of New York.

 

Possibly unique

Copyright The Joe I. Herbstman Memorial Collection of American Finance 

 

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