$1 Western Exchange Fire and Marine Insurance Co. - 1857 dated Obsolete Banknote - Broken Bank Note

Omaha City, Nebraska. Printed by Danforth, Wright & Co., New York & Philad.

The Western Exchange Fire and Marine Insurance Co., established in 1855, was a prominent company based in Omaha, Nebraska Territory. During the mid-19th century, it primarily offered fire and marine insurance services. With a reported capital of $500,000, the company’s stockholders were individually liable for its obligations. In an era before a centralized federal banking system, the company also issued its own private banknotes, serving as a form of currency or “certificates of deposit” in the rapidly expanding American West. These banknotes featured intricate vignettes depicting scenes of westward expansion, such as Native American hunting parties and steamships navigating the Missouri River.

However, the company’s existence was short-lived. On September 23, 1857, it “exploded” during the financial Panic of 1857, collapsing. At the time of its failure, the company reportedly had only $191.30 in specie and $121 in notes from other insolvent banks on hand. Following its collapse, the company’s charter was briefly purchased by the Swedish-American Bishop Hill Colony in Illinois for use with their own bank, but this endeavor also met its demise. Today, the Western Exchange Fire and Marine Insurance Co. is primarily remembered through its obsolete, or “broken bank,” banknotes. These banknotes have become valuable historical artifacts and collector’s items, offering a glimpse into the volatile economic landscape of the American frontier.