Brookville State Bank 1817 - 1823
The State-of-Indiana, which was created in 1816, wasted no time in creating a system of State Banks. Two State Banks in existence in 1816 were the banks of Vincennes and Madison. In the summer of 1817 the Vincennes Bank provided for  branch banks to be opened at Brookville, Corydon and Vevay.

The above map is that of the State of Indiana in 1816, the numbers illustrate the locations of State Banks established by 1817:   1. Vincennes, 2. Madison, 3. Brookville, 4. Vevay, 5. Corydon.  At this time the State Capitol was at Corydon.

The above photo is that of a structure long known as "The Old State Bank",  it is located on Long St., between 7th and 8th in the valley of Brookville and was built by Robert Brackenridge in 1817.  This building is still standing, though slightly remodeled, and is now used as a residence.

Fractional Currency Notes

The State Bank at Brookville was authorized to issue fractional currency in three denominations. 6-1/4, 12-1/2, and 25 cents.  During this period of time nearly all transactions were made using the barter system. Stores accepted produce in exchange for merchandise etc.  There was very little hard currency.  The safest money on the frontier was the Spanish dollar.  These silver coins were often cut into eight pieces called "bits" to make change.  For this reason the Spanish dollar was referred to as a piece of eight.  An old saying goes, two bits, four bits, six bits a dollar.  Often a dollar was cut into four quarters which is  what we still call the twenty five cent coin.  As silver was the only reliable currency it was soon horded off of the market and these fractional notes were created to make change in uneven transactions.  By 1819 the Brookville Branch Bank had issued so many of these notes that their value was of question.  "The Panic of 1819" affected nearly all of the banks in the west, and this Brookville Bank was bailed out by the State of Indiana and shortly thereafter closed its doors.  

 

 

The$ 5.00 note above is an example of an Indiana State Bank note issued at Vincennes and payable upon demand at the Branch Bank of Brookville.
Although most business in the Whitewater Valley was conducted without the need for paper money, some transactions such as paying taxes and buying Federal Land required the use of cash.

-R.P. Baudendistel