2nd Charter
National Currency

After Abraham Lincoln took the office of President in March of 1861, the country divided and began the Civil War. To stabilize a war time economy plagued with collapsing private bank issues, the National Banking Act of 1863 gave birth to a new form of Paper Money. Private banks were issued renewable national charters for a period of 20 years.

In order to issue notes, the individual banks had to deposit securities of government issued bonds with the United States Treasury. Once these securities were deposited, the bank could issue currency with a face value of up to 90% of the value of their deposits.

There were three twenty-year charter periods of National Bank Notes. During these periods, thousands of banks were granted charters and issued notes.