1 Dollar Bank of Michigan - Marshall, Michigan

The Bank of Michigan in Marshall was a state-chartered institution operating under Michigan's free banking law, which from 1837 onward allowed virtually any group meeting minimum capital requirements to issue notes. The system produced hundreds of small-town banks across the state, many of them chronically undercapitalized. Marshall itself was a prosperous enough town — it had nearly beaten out Lansing for the state capital in 1847 — but bank failures in Michigan were common enough that the public routinely discounted notes from unfamiliar institutions.

By 1862, the issuance of state bank notes was already in its final years nationally; the federal National Banking Acts of 1863–1864 would impose a prohibitive tax on state currency, effectively killing off issues like this one.