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R-5 34 Kansas Paper Money Drover’s Bank of Kansas, Fort Leavenworth, stock certificate. MERCHANTS BANK (Fraudulent Bank) These notes are true wildcat notes. The story of their origin is found in the Kansas Weekly Herald newspaper issues of November 10, 1854, and January 19, 1855. A Mr. Lucien Ayer traveled to Fort Leavenworth in the fall of 1854 and announced his intentions to establish a local bank. The bank was never opened, but a large quantity of the notes of this bank were printed and apparently sold in the northeast before the fraud was discovered.

Those authorized to issue currency. The maximum allowable loan interest was 10 per cent and loan periods were limited to one year. This resulted in limited availability of loanable funds, which worked to the disadvantage of local merchants and farmers. The bank was authorized to issue paper money. Special provisions in the charter ensured that the notes would be redeemable in coin. The smallest allowable denomination was $3. 48 Kansas Paper Money Efforts to establish the Atchison branch and the Fort Scott branch included opening subscription books at those locations.

R-5 117. $3 July 1, 1856. As above. Plate letter A . . . . . . . . . . . . . . R-5 34 Kansas Paper Money Drover’s Bank of Kansas, Fort Leavenworth, stock certificate. MERCHANTS BANK (Fraudulent Bank) These notes are true wildcat notes. The story of their origin is found in the Kansas Weekly Herald newspaper issues of November 10, 1854, and January 19, 1855. A Mr. Lucien Ayer traveled to Fort Leavenworth in the fall of 1854 and announced his intentions to establish a local bank. The bank was never opened, but a large quantity of the notes of this bank were printed and apparently sold in the northeast before the fraud was discovered.

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Encyclopedia of chemical technology by Kirk-Othmer


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