Fredericksburg's first bank began when the state-chartered, Bank of Virginia in Richmond opened a branch in Fredericksburg in 1804. The charter authorized Fredericksburg as one of the first towns to have a branch. Many businessmen complained about the monopoly of the Bank of Virginia, and the state chartered the Farmers Bank of Virginia in 1812, with a branch in Fredericksburg. We are fortunate that two 'minute books' for the Farmers Bank of Virginia survive for the main bank in Richmond. They are dated 1820 - 1827 and 1841 - 1853 respectively. Various branches of the bank are cited in these minutes. Germain to Fredericksburg, the minutes record that worn out and unusable banknotes were returned to Richmond for replacement and destruction. In 1824, the minutes reflect the destruction of $129,000 face value of banknotes ranging from $5 to $100 denominations, amounting to 3,236 banknotes. Two additional financial institutions opened in Fredericksburg and issued banknotes before failing.

Minutes survive from the Bank of Commerce, chartered on March 29,1851, whose board of directors held their first meeting on December 15, 1853. In 1861 notes from this bank received some notoriety as the local newspaper advised that counterfeit $10 bills were being circulated in Baltimore. The public was warned to be wary of a woman who passed the notes frequently changing her attire to avoid detection. This bank did not survive the Civil War and closed in 1865.

The second was the Fredericksburg Savings Institution whose minutes survive, and the board of directors held their first meeting on May 19, 1839. This institution was eventually driven out of business in 1844 due to competition with the Farmers Bank of Virginia.

Banks were not the only financial organizations to emit paper currency. Before the war, six different Fredericksburg merchants issued banking 'scrips' as well as the Fredericksburg and Valley Plank Road Company. Although not chartered as banks, their notes served the same purpose in trade but offered no assurances of any kind. The issuers relied on good faith and their reputation in the community for their local acceptance.

On April 20, 1861, the Common Council of the officially the Corporation of Fredericksburg authorized issuance of to meet engagements of the corporation at the outset of the Civil War. Banknotes were issued in denominations of fifty cents, one dollar, and two dollars the following month, that circulated well and were worn out after just six months heavy use. These were payable in Virginia Bank Notes by the Chamberlain to the bearer on presentation of due bills to the amount of five dollars.

By September 1861, the town council authorized an additional $10,000 in notes. When the town was destroyed by war in 1862 many notes in the bank and courthouse were 'carted off' by soldiers so that many survive today.

For more information on the Virginia Numismatic Association, see:
http://www.vnaonline.org/