The Adrian Insurance Company
$2.00 · Adrian, Michigan
Historical Context: Insurance Companies as Banks
The era of “wild banking”:Under the Michigan General Banking Act of 1837, almost any group of citizens could found a bank issuing banknotes simply by depositing state bonds as collateral —, a system so lax that it gave rise to the derogatory term “wildcat banking” (wild banking), alluding to institutions as remote and difficult to find as a wildcat's den.
An insurance company licensed to bank:The Adrian Insurance Company, based in Adrian, Michigan, with declared capital of $250,000, used this legislation to issue its own paper money —a common practice among Midwestern insurers during the 1840s and 1850s, when the line between banking and insurance remained very blurred.
Vignettes and Images of the Obverse
- Center:rural scene with a herd of cattle, sheep and pigs next to a farm, with men herding in the background —allegory of the prosperous agricultural economy of southern Michigan.
- Left side:blacksmith standing next to his anvil, with a hammer in the background —representation of the artisan industry.
- Corners:two large ornate counters with the number “2”, top left and right.
- Oval stamp:company emblem in the lower right corner, with the legend “ADRIAN INSURANCE Co.” and its share capital.
- Reverse:mirror image of the obverse with the denomination “TWO” in large inverted red letters, a common practice to make counterfeiting using offset printing difficult.
Printed by Toppan, Carpenter & Co., one of the most prolific security engravers of the mid-19th century, this note is one of a complete series of $1, $2, and $3 denominations issued by The Adrian Insurance Company. The company was part of a constellation of Michigan banks and insurers that flooded the state with paper money after the 1837 law —an experience so chaotic that it led to most of these issues losing their value in a few years, and the state itself drastically tightening its banking legislation in the following decade.
— Historical Context Note
Sources
- Haxby, James A.Standard Catalog of United States Obsolete Bank Notes, 1782–1866.
- Heritage Auctions —ha.com(opens in a new tab)
- Numista —numista.com(opens in a new tab)