Statehood Colonial Notes
North Carolina's Statehood Colonial Paper Money
The seeming contradiction in the title is explained by numismatists' convention of lumping any issue after 1776 and before 1800 as "colonial." Accordingly, the State of North Carolina produced six colonial issues.
The 1778 (August 8, 1778 Act) issue consisted of 19 distinct designs in 13 denominations from $1/8 through $100. The typeset notes, payable in Spanish milled dollars, were printed by James Davis. They cite Hillsborough as the locale for the legislation. One distinction of these notes is the use of mottos, such as: "Behold! A New World," "A Lesson to Arbitrary Kings and Wicked Ministers," "Virtuous Councils the Cement of States," and my favorite, "The Rising States." Also used were the cryptic "Union of Hearts the Strength of Interests" and one in Latin, "Sic Transit Gloria Mundi." The patriotic phrases were likely meant to bolster morale during these early war years. There are many survivors of this series, although some designs are quite elusive.
The issues of the May 15, 1779 Act continued to use the patriotic phrases, although the set is different. Examples are "Peace on Honourable Terms," "Good Government Always Revere," and "A Righteous Cause the Protection of Providence." No Latin this time. The imprint is Hugh Walker, who was pressed into service when a flu epidemic made Newbern (the contemporary spelling) off limits. The typeset and to these eyes rather ugly notes bear the place name of Smithfield, where the legislation was enacted. There are 10 designs and 7 denominations from $5 through $250. Examples are generally plentiful, with some designs much less so.
There are two series for 1780. The first is the April 17, 1780 Session Act. The Act permitted issuance of the $50 denomination authorized by the August 8, 1778 Act but never printed. There are three typeset designs similar to others in the 1778 series, but with date 1780 on the back. All are very rare.
The other 1780 series is that of the May 10, 1780 Act. There are 16 designs and 9 denominations from $25 through $600, the highest denomination of all the North Carolina colonial issues. James Davis was the printer, and the design is very similar to the notes of 1778, including the use of mottoes. But this time the mottoes are all Latin--so much for their morale value for most people. Availability to the collector is similar to the issues of 1778 and 1779.
The issues of May 17, 1783 were printed by Thomas Davis, James' son, and bear the place name Hillsborough. While typeset, they include engraved vignettes. There are 8 designs, and 7 denominations from 6d through 40s. The monetary system is again English! I asked distinguished North Carolina historian William S. Powell about this change. He said that it was likely part of the state"s attempt to appeal to an international market. The English monetary system was much better known and more acceptable than the new American system. All of the designs are rare to very rare. Many collectors' examples are known contemporary counterfeits.
The last of North Carolina's colonial issues was that of the December 29, 1785 Act. The Assembly met in Newbern, and that name is on the front of the note. On the back of at least one design is "Hillsborough: Printed by Thomas Davis." There are 8 designs, very similar to those of 1783, and 8 denominations from 6d through 40s. All examples are rare to very rare.
The 1783 and 1785 notes circulated until all were redeemed or become demonetized in 1816. This probably accounts for their scarcity today. Unlike the other statehood issues, they maintained most of their value, and served a state in poor financial condition. The U.S. Constitution forbade the states to issue bills of credit, bringing colonial paper money to an end in all the states.