Sussex banks once issued their own money

The National Banking Acts of 1863 and 1864 created a system of nationally chartered banks, but not a consistent national currency. That arrived in 1913 with the creation of the federal reserve banking system. Subsequent acts in the 1860s imposed a 10% tax on payments that banks made in currency notes other than national bank notes. The high tax rate was set so high to effectively prohibit further circulation of state bank and private notes. A national bank note was good at any national bank or the treasury. Local banks continued to issue their own federally secured currency until 1935, when national bank notes were retired as a currency type by the U.S. government. Currency was consolidated into Federal Reserve notes, United States notes and silver certificates.

Sussex County national banks included the Lewes National Bank, the First National Bank of Milford and the First National Bank of Georgetown. Other banks were located in Seaford, Selbyville, Laurel, Delmar, Frankford and Dagsboro.

A Lewes $5 note issued in 1898 prominently displays “The Lewes National Bank will pay the bearer on demand five dollars.” It features the national bank charter number, 5148, and indicates the bill is national currency secured by United States bonds and deposited with the treasurer of the United States. It also has a picture of President James A. Garfield, who was elected president in 1881 and assassinated that same year. Lewes’ $10 bill features an image of Benjamin Franklin flying a kite.

The Lewes National Bank was built about 1850 on Second Street. It issued its own money from 1898 until 1915. John F. Sippel was the bank president at that time. Cashiers during that time were Walter Sparklin and James T. Lank. According to online records, the bank had a balance of $95,153 in 1899 and $424,445 when it was liquidated in 1914. At the time, it had $50,000 in circulation. The bank building still stands today, but it’s been relocated to Franklin Avenue where it’s been renovated.