2 Dollars

The Bank of Prince Edward Island was chartered in 1856 but remained a modest institution throughout its existence, operating almost entirely within the island's limited agricultural economy. This note was issued during a particularly awkward transitional period — Prince Edward Island had joined Confederation only in 1873, and the provincial banking system was being absorbed into a Dominion-regulated framework that many island merchants actively resisted.

The British American Bank Note Company had consolidated its Montreal and Ottawa operations by this point, making it the dominant security printer for Canadian chartered banks. The bank itself failed in 1881, leaving noteholders scrambling for redemption at a significant discount.