For sale is a rare 1863 ONE DOLLAR CURRENCY NOTE from the Bank of Chattanooga, State of Tennessee. This obsolete civil war era currency is in excellent condition with a bit of edge damage. The right side of the note features an illustration of a railroad mechanic holding a sledge hammer. The center of the note features a detailed drawing a railroad steaming down the track. The text on the note reads: “The Bank of Chattanooga pay to bearer one dollar in Confederate Treasury Notes when presented in sums of five Dollars or its multiple”. The note is dated January 4th, 1863. The hand signed note is serial number 186. Note measures about 6 5/8 inches by 2 1/2 inches. A first rate historic collectible.
The Bank of Chattanooga issued notes between 1854 and 1863. The note illustrations provide a fascinating study of this major southern rail center prior to and during the civil war era. The Bank of Chattanooga was chartered by the State of Tennessee in 1854 with capitalization of $500,000. This was reduced to $212,000 in 1856. The bank was located on Market Street near Third and was owned by the same owners as the Bank of Memphis. The note is printed on high quality paper by printer Keatinge & Ball, Columbia S.C. The printer, founded in 1861, did the engraving and design work for almost all of the Confederate States of America notes.
To pay for the war, the Confederate government issued a vast array of paper currencies. Making things even more confusing, state governments issued their own currencies — as did banks, insurance companies, and businesses. None of this paper money could be redeemed, or traded for, gold or silver — as was common in the early nineteenth century. The Confederate government had no gold or silver to make coins. Instead, Confederate paper money was like a loan — a promissory note or promise to pay at a later time. At the start of the war, when southerners expected to win the war, they were willing to trust that their paper dollars would continue to hold value. But as the South started to slide towards defeat, they lost faith in not only their chances of victory but their money as well.
