Funny Money

The above photos are of paper money issued on the First National Bank of Menasha in 1929.  National Bank Notes were US currency banknotes issued by National banks chartered by the United States Government. The notes were usually backed by United States bonds the bank deposited with the United States Treasury. In addition, banks were required to maintain a redemption fund amounting to five percent of any outstanding note balance, in gold or "lawful money." 

 

These were retired as a currency type by the U.S. government in the 1930s.  During the Great Depression, US currency was consolidated into Federal Reserve Notes, United States Notes, and silver certificates.  Privately issued banknotes, as these above, were eliminated. Despite appearances of the photos, these looked very similar in size and color to today's money. 

Sometimes these notes are referred to as "hometown" notes, with their popularity deriving from the wide range of towns and cities that issued them.  In the hobby world of collecting paper money, these notes are avidly studied and collected. Some were issued in large numbers and remain inexpensive. Others include examples of rare banks, towns, states and combinations thereof and are quite valuable. The above examples were up for auction on eBay earlier this year and were sold for $325 each.