Week 566 Happy Friday!!

[Jennifer F.]

 

Q: What was the purpose of the 1814 North Carolina fractional issues?

 

 

Our first place winner will receive a coupon for 1 note graded under the Standard grading tier. (You must have an active account with PMG,call PMG for details) There will also be a runner up prize given to a randomly selected player with the correct answer.

 

REMINDER: The Numisma-Quest ends on Saturday at midnight EST. Entries after that time will not be valid. See the Trivia info post for more details.

 

Have a great weekend everyone and good luck!

[hunter's gold]

The chief purpose of the money was to make it possible for North Carolina's cash strapped government to buy bank stocks.

[dadams]

The chief purpose of that money was to make it possible for North Carolina’s cash-strapped government to buy bank stocks

[JIM F.]

"When the War of 1812 caused a small change shortage the State approved $82,000 in fractional Treasury Notes at the 1814 Session in violation of the United States Constitution and used the notes to buy 410 newly issued shares in the Bank of Cape Fear and 410 in the Bank of Newbern."

 

Reference: The Early Paper Money of America, Fifth Edition. Page 328.

 

[Amarillo]

Most of the national bank was insolvent in the war of 1812, so this created the bank of the united states, to protect the defaulting bank and thereby peretuated the fraud by creating the second bank of the unite state's.

[Amarillo]

P.S. and to collect state taxs.

[cwtripp]

The creation of the state of north carolina bank and the threat of the new bank adsorbing the other smaller banks as their charters ran out led to the smaller banks creating fractional currency for debt repayment.

[Jennifer F.]

Q: What was the purpose of the 1814 North Carolina fractional issues?

 

A: To Purchase bank stock for the Banks of Cape Fear and Newbern

 

 

Thanks to everyone that participated this week. And congratulations to our winners dadams and Hunter's Gold.

 

Have a great week everyone!