5 Dollars The Arlington Bank

Danforth, Wright & Co. operated out of New York during a relatively brief window before merging into the American Bank Note Company in 1858 — making any note bearing their imprint dateable to a narrow production period. The Arlington Bank was a state-chartered institution operating under the looser regulatory framework of the Free Banking Era, when virtually any group meeting minimum reserve requirements could issue currency backed by deposited bonds rather than specie.

Bond-backed free bank notes were only as sound as the securities behind them. If the deposited bonds lost value — as many state bonds did — the notes became worth less than face, and holders had little practical recourse.