||Dubuque, IA - State Bank of Iowa at Dubuque $1 Oct. 1, 1860 IA-1 G84 Oakes 60-6. Serial #1. PCGS Extremely Fine 40. A majestic American banknote, and perhaps the greatest of all Iowa Obsoletes. This is not only a State Bank of Iowa $1 issued note in magnificent condition, but it is also a machine serial number 1 note from the Dubuque branch. Interestingly, the State Bank of Iowa comprised a group of fifteen branch locations without a home bank office. Instead, they acted with a representative board of directors from their formation in 1858 until their eventual mergers into the National Banking system as required by law and the financial ramifications of the Civil War, Treasury Loan sales and the introduction of the "greenbacks" into circulation. The Dubuque branch was the second branch authorized (Muscatine was first), but emitted the most notes. By early 1862, well over $1,000,000 was in circulation for all the branches. The purpose of the State Bank was to create a sound money system in Iowa and drive away "wildcat" notes from neighboring states, especially Indiana, Illinois, and Kentucky. However, even some of its own branches were less than ethical and were under scrutiny for specie payments required after the introduction of the Legal Tender notes by the Federal government. The rarity of most genuine State Bank bills, regardless of branch, is evidence that most were redeemed. It was the rampant counterfeiting of earlier series notes that led the State Bank to the National Banknote Company in New York; the firm created intricate notes, such as this, that were impossible to counterfeit. The inspiring orange tint lathe pattern covers nearly the entire note and features repeating wave lathe work with micro branch titles and miniature ONE rectangles. The branch location was engraved on this tint plate and, in this case, AT DUBUQUE above the main vignette. Seated Justice is at the center and under the main title. Upper corners show overlapping scalloped dies with titles created from the Cyrus Durand patented devices exclusively for this imprint. The visual effect is stunning. This is the finest issued note of any denomination from the NBN imprint State Bank of Iowa series. It is much superior to legendary Dubuque collector Tom Flynn's example sold by us in September 2008 for $2,530. The machine serial number 1 adds to this note's already amazing quality. This note was carefully preserved from its inception. To obtain such a museum piece would have required high-powered connections. The color is vibrant and faint folds are seen only from the back. It is broadly framed all around. An accurate estimate of value is difficult, as the note is priceless. The next collector will obtain one of the finest Obsolete notes from the Newman cabinet. Ex: Eric P. Newman Numismatic Education Society.
Realized $16,450.00. Newman VI (Heritage Auctions, 4/2015), lot 19058. Description courtesy of Heritage Auctions.