If you look at the listings under the category of Obsolete Currency, it becomes apparent that many people believe that paper money such as Silver Certificates, or anything that isn't currently in circulation today, is Obsolete Currency. Although that may hold true if you're going by the dictionary definition of the term, in the world of paper money collecting, Obsolete Currency refers to paper money that was issued by entities other than the Federal Government, and generally in the period of 1782 - 1866. It includes notes that were issued by state banks, state and local governments, merchants and railroads.

Many people think that the Federal Government was always in the business of printing paper money. The truth is, up until 1862 (with a couple small technical exceptions), the Federal Government was strictly in the coin business, and didn't issue paper money. The establishment of the Bureau & Engraving can be traced back to August 29, 1862.

The bank issued currency makes up the largest portion of the field of Obsolete Currency. These are often referred to "Broken Bank Notes". This is a term that goes back to the days when bank failures were common. The banks were considered "Broken", and their currency was considered "Broken Bank Notes". The term Obsolete Currency is more fitting, as many of the banks did not go broke. As a matter of fact, James Haxby notes in his book "Standard Catalog of United States Obsolete Bank Notes 1782 - 1886" that many of the early national banks or their successors exist today, and some still redeem the old issues of their predecessors!  

There were many different printing companies that could be contracted to print paper money. As with anything else, some were better at their craft than others. Some collectors choose to collect notes that were printed by a particular printer or company. A couple of good examples would be notes printed by W.L. Ormsby, or the American Bank Note Company. Both produced notes of high quality that are actively collected today. There were, however, dozens of others too.

The field of Obsolete Currency consists of many thousands of different issues, featuring some of the most beautiful artwork you'll ever see on paper money. Thousands of different vignettes can be found. I was told by a Bureau of Engraving and Printing employee that was giving a demonstration at a recent coin & currency show, that some of the more elaborate vignettes could take up to 9 months to produce! After the plates were produced for printing, a number of steps were involved in the printing of each sheet of currency. The sheets were usually printed with 4 notes to a sheet, and was delivered to the banks as sheets. There were no elaborate cutting machines in those days to cut the sheets, so the notes would be cut off the sheets by hand with scizzors. Because of this, Obsolete Currency is normally found with somewhat uneven margins which were rarely cut perfectly straight.

Due to the high cost of having currency printed, most Obsolete Currency was only printed on one side. During the Civil War there was a severe paper shortage. Many banks, who had to provide the paper for the currency to be printed on, had to be creative at times. Often times, unused sheets from an earlier issue (or even another bank) would be recycled. This would be done by using the blank back side of left-over sheets, usually arranged with the new notes being printed in the opposite direction of the notes on the back of the sheet. There are also some issued that were printed on lined notebook paper and even wallpaper!

Obsolete currency is a vast and interesting field, with many different ways it can be collected. Some people will collect notes from their particular state or town. Others will collect according to the themes of the vignettes. Some will collect notes with vignettes depicting Indians, trains, slaves, bare-breasted women, boats, covered wagons, animals or some other area of interest to them. Although Obsolete currency has been appreciating in value at an amazing rate (and still going!), the greatest reward comes from owning these works of art from an era so long ago.