Tucson, AZ - $5 1875 Fr. 405 The First National Bank Ch. # 2639 PMG About Uncirculated 55 EPQ.. ...

Description

The Finest Graded Arizona Territorial
One of Only Four First Charter Notes from the Territory

Tucson, AZ - $5 1875 Fr. 405 The First National Bank Ch. # 2639 PMG About Uncirculated 55 EPQ.
Arizona's unforgiving environment left it sparsely populated and rarely traveled. The first transcontinental railroad to run through Arizona was not completed until the late 1870s, and it was simply a means to get to California. Mining ventures meant goods and services were paid mostly in metals, with banks far and few between.

The Signers - Architects of Arizona's Early Commercial and State History

Barron Jacobs and his brother Mark were sent by their father in 1867 from San Bernardino, California to Tucson to establish a branch of the family's mercantile business. Barron M. Jacobs and Lionel M. Jacobs' expansion of their operation was initially M.I. Jacobs & Co. and then L.M. Jacobs & Co. In addition to traditional mercantile goods, the business evolved into a currency exchange and small lending operation to meet the demands of a frontier economy short on hard currency. By 1879, Barron and his brother Lionel had founded the Pima County Bank, Tucson's first formal banking institution, in response to the booming economic activity spurred by the Tombstone silver rush.

Pickney Randolph Tully played a significant role in Arizona's early political and economic development, serving as Territorial Treasurer in 1873 under Governor Anson P.K. Safford and later as Mayor of Tucson. His influence extended into business as a partner in the freight company Tully & Ochoa, which dominated regional trade until its decline following the railroad's arrival in Tucson. After the firm's collapse, Tully remained active in finance, helping to organize and preside over the Pima County Bank. His long-standing involvement in territorial affairs also included seeking compensation for substantial losses incurred during Indian attacks on supply caravans in the late 1860s, for which he was partially reimbursed by the federal government in 1897.

History of the First National Bank of Tucson

Barron Jacobs played a central role in the transformation of the Pima County Bank into a series of successive banking entities: it became the First National Bank of Tucson in 1882 (where he served prominently; documents list him as cashier). Following economic headwinds in the mid-1880s, the First National Bank was reorganized in 1885 as the Bank of Tucson, still under his leadership. This entity then merged with others to form the Consolidated Bank of Tucson in 1887, with Barron installed as president-a major step in consolidating Tucson's banking infrastructure. Later, the banking ventures evolved into the Arizona National Bank, and eventually were absorbed into the strongest banking institution in the region.

Numismatic Importance
The First National Bank of Tucson was chartered in 1882, and assigned Series 1875 notes for its circulation. It was the only bank in Arizona that was assigned First Charter notes, and only the $5 denomination. The First National Bank of Phoenix was chartered just a year later, and was part of the Second Charter design issuance, and issued $5 Brown Backs only.

That left one bank with the entire issuance of First Charter Notes for the Territory of Arizona. A scant 8,500 notes were issued in total over its two-year tenure. Today, four notes are known, undoubtedly, three of them were set aside by one of the banking families as they include two Serial Number 1s, and a serial number 2. This note is serial number 1013, and in impeccable condition. To date, it is the finest graded of all Arizona Territorials, boasting exceptional paper quality. PMG mentions as-made ink, which is at the top of the design on the back. That ink is from the seal or serial numbers, bold red in color, and lightly smeared during the printing process. Most Nationals at the time were hand cut; this one was cut at an angle once the banker or cashier cut close to the edge of the note. Through the holder, the paper wave and embossing are evident, and the black and green inks are as bold as one will find on any First Charter note.

When this piece crossed the auction block in 2008, it realized $218,500. The other notes known from the bank have not been offered at public auction, and are tightly held by their owners. This piece beats at least one of the Serial Number 1 notes and the serial number 2. Any complete set of Territorial type notes will require this trophy note for their holdings. A realization in that range again will not surprise anyone, as it might be among the top tier of Territorial trophy notes.

More information about Arizona National Bank Notes.