Lot 2875

Description

The Westmorland Bank of New-Brunswick, one dollar, Moncton, N.B., Aug 1st 1861, No.13597, imprint American Bank Note Co. New-York & Boston, with hand cancellation on right signature reserve, 'defunct' entered in left reserve in red ink (P.S2047b). Vertical folds otherwise nearly extremely fine.

The Westmorland Bank (1854-1867) was chartered in 1854 with a capital of $60,000. This bank operated in Bend of the Petitcodiac, subsequently renamed Moncton N.B. There were no other branches. In 1859 a major shipbuilding firm failed and depression struck the area. Debts due to the bank, secured by mortgages on land which could be sold for only a fraction of its former worth, had to be covered from the reserve fund. The bank's position steadily weakened until its failure on 14 March 1867. The capital of the bank was lost, together with an almost equal amount to be covered by the shareholders under the double liability provision in the charter.