Maryland's Allegany County Bank-One Dollar 1861
Engraver American Bank Note Company American
Not on view
Until the widespread introduction and use of Federal currency, local banks issued their own notes based on specie deposits made by the community and the immediate need for such items within the area. This arrangement remained in effect until well after the outbreak of the Civil War, with merchants frantically searching for a ways to easily and economically transact their business, since specie, the only form of money issued by the Federal government until that time, had disappeared from circulation. Local banks, as well as the merchants themselves, issued large amounts of banknotes, all used to help alleviate the shortage of specie and facilitate commerce.
