1870 Nat'l Gold Bank Note=Ch. #1741=SCARCE=Fr. 1142==PCGS VG 10

Description

1870 NATIONAL GOLD BANK NOTE
a rarity of the highest caliber
The national gold bank notes of California were first issued under the act of July 12, 1870. The act allowed for nine gold banks in California and one in Boston (which never released any notes) to issue national bank notes redeemable in gold coin. The purpose was to facilitate commerce and banking  in California as gold coins were cumbersome for banking--particularly in the large quantities which had become common.  The notes were purposefully made to imitate gold bullion
and gold coins. The paper has a distinctly yellowish tone and the design of the back features United States gold coin in multiple denominations indicating to those previously unfamiliar with paper currency or hesitant to accept it, that the note was literally backed by gold. At that time, most members of the public were used to receiving hard specie payment in the form of gold coin or gold dust or silver equivalent. As such, there was a natural hesitancy to accept paper which was seemingly valueless--the central image on the back was specifically designed to allay any fears.
The national gold bank notes circulated extensively and with little regard to preservation, leaving very few examples above Fine--regardless of the denomination.
The rarity of the notes increases exponentially as the denomination increases. Although there are precious few five dollar national gold bank notes the number extant drops precipitously when the denomination increases to the level. It takes a further nose dive at the denomination with only a few dozen known for all banks combined.  The 50 and 0 denominations are essentially unobtainable. A 0 national gold banknote would be a six figure item even in About Good condition.
All national gold bank notes represent tangible links not only to the wild west and the gold rush in  California,  but likewise to the most formative stages of American currency. A collector should prize any example and should add work aggressively to include and additional examples, particularly if the piece offered represents either a different bank or a higher denomination.

First NATIONAL GOLD BANK of  SAN FRANCISCO
Charter 1741
Friedberg 1142
this example seems to grade
PCGS VERY GOOD 10, apparent,
because of "Edge Splits, Tears, and Minor Damage; Hinge Repairs on Back"
findings consistent with a higher  circulated grade
additional comments
The coin vignette on the reverse of this note was used to instill confidence that paper currency
was backed by gold.
These notes were released in California during a time when the miners would used to being paid in gold instead of paper currency.
we believe that our opening price is far below the retail value found elsewhere; and while our starting price is very fair, it is our intent to place quality notes into appreciative collections at equitable prices--so we welcome reasonable counter-offers through the eBay system
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Professional Numismatists Guild (PNG)
Frederick J. Bart #585
Doris A. Bart #A762
Bianca B. Bart #A763