1861 Detroit Small Change Notes
Issued during the early days of the Civil War, Detroit’s small-denomination State Bank of Michigan notes kept local commerce moving and remain prized today for their patriotic imagery and artistry.
In order to take some pressure off Detroit businesses to make small change, a series of four notes was issued on November 1, 1861. They were smaller than $1 and were issued in 5¢, 10¢, 25¢, and 50¢ denominations. At the time, the Civil War had just begun, and coinage—especially silver and copper—was being hoarded by the public, disrupting the normal currency flow. People then began to trust local bank notes and merchant scrip as temporary substitutes.
During this time, State Bank of Michigan notes circulated widely in shops, taverns, and markets throughout Detroit. These small-denomination paper notes provided a practical solution to keep local trade moving smoothly.
At the time these notes were issued, Detroit was the largest city in Michigan and the center of most of the state’s business activity. Banking and trade were concentrated in the city, and it was natural that the notes were printed and distributed there. Many Michigan towns issued their own obsolete bank notes during this period, but Detroit’s designs stand out for their engraving quality and patriotic themes.
These notes were both attractive and useful for small, non-dollar values. Each note in the series displays the denomination both spelled out and printed in bright, colored numerals, which added visual interest and helped prevent confusion among the different values. All of these notes also include the bank's name, "State Bank of Michigan," on the respective faces.
The 5¢ note from my collection shows quite a bit of wear from circulation. It features a portrait of a small boy with a drum. This “drummer boy” design was a patriotic image during the Civil War era, representing youthful enthusiasm and national spirit.
The second note in this series, a 10¢ note, bears a portrait of George Washington, who was one of the most popular figures to be placed on paper money of that period. The third note in the series, a denomination of 25¢, features an image of a woman holding a scale.
The final note in the set, the 50¢ denomination, presents a lively vignette of a herd of elk and a group of children raising a flag. The design captures a sense of pride and community that reflects the times.
Many examples of these notes, especially those that were redeemed by the issuing bank, have small, punched holes near the bottom. These holes were made intentionally as cancellation marks once the note had been turned in for payment. When a note was exchanged for coin or deposit at a bank, a teller would punch it to show that it had been officially withdrawn from circulation, ensuring that it could not be reused or reissued. Collectors today view these cancellations as evidence that a note was genuinely used and redeemed in commerce, adding to its historical authenticity and charm.
Surviving examples of these notes are prized by collectors for both their historical significance and artistry. They provide a vivid glimpse into Detroit’s economic life during the early 1860s—a city adapting quickly to national change while maintaining its own distinctive local character.
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