Quaint Town Produces Rare Notes

Kansas is replete with interesting small towns, many of which have still standing architecturally interesting old banks that really epitomize the small-town national banking era. For this month, I selected a note from my collection that I thought would be interesting for several reasons, and so we’re going to take a short visit to picturesque Cottonwood Falls, Kansas. This goes right into the heart of sparsely populated rural Kansas, which for me makes it all that more interesting.

Cottonwood Falls is the county seat and largest city in Chase County, Kan., a rural subdivision located roughly equidistant between Kansas City and Wichita. The population of Cottonwood Falls is only 851, which would lead one to believe that the county is also very sparsely populated. One would be correct as Chase County itself has less than 2,500 residents. Interestingly, Chase County was founded in 1859 and named for Salmon P. Chase, then the governor of Ohio and an advocate for Kansas statehood. Of course, he was the same Salmon P. Chase who later became the father of the national currency system.

The first settlement in the area of Cottonwood Falls was in 1854, when an Indian trader named Seth Hayes founded a cattle ranch on the Cottonwood River close to the mouth of Diamond Spring Creek. The area around the town was organized as Chase County in 1859 and Cottonwood Falls was designated the temporary county seat. North of Cottonwood Falls is the Cottonwood Falls bridge and dam. The first dam at this site was constructed of Cottonwood logs in 1860, which provided waterpower for a saw and grist mill. In 1906, the dam was expanded and used to generate electricity. The present dam is constructed from cut limestone which was later covered with concrete.

The first major bridge at Cottonwood Falls was a 150-foot-long iron truss bridge constructed in 1872. The present bridge was constructed in 1914 by the Missouri Valley Bridge Company of Leavenworth, Kan. It is one of only three remaining reinforced masonry, earth filled arch bridges that were designed by Daniel B. Luton, and it is listed on the National Register of Historic Places today.

In 1873, the city’s French Renaissance style Chase County Courthouse, which sits at the head of Broadway, was built. It is constructed of walnut and limestone, which was quarried on the town site. It is the oldest Kansas courthouse still in use. The courthouse was designed in French Renaissance style by John G. Haskell, who was also the first architect of the statehouse in Topeka. The courthouse is characterized by the distinctive shape of the roof. It stands 113’ tall, and one can see the courthouse and its red mansard roof from vantage points throughout the county on most days. Featured within this structure is a three-story spiral staircase made from walnut trees from the Cottonwood River. At roughly the same time, the Atchison, Topeka and Santa Fe Railway reached the Cottonwood Falls area. Through the late 19th and early 20th centuries the area around the city was mainly divided into farms and cattle ranches.

By 1882, Cottonwood Falls was ready for its First National Bank. Accordingly, the Chase County National Bank of Cottonwood Falls was organized in June of 1882 and received charter #2764. The bank operated for 45 years until it was closed by the receiver in 1928, making it a large only issuer. Its total issue was $947,000, comprised of notes of Series 1875 and 1902 red seals and blue seals. Interestingly, its red seal issue consisted of $50 and $100 notes only, and surprisingly three are known: one $50 note and two $100 notes! Currently, a total of 12 notes are reported in the census; of these, two are Series 1875 and three are Series 1902 red seals leaving just seven notes available for collectors who do not want to spend a fortune on a note from this bank.

I have included with this article a photo of the Series 1902 $20 Blue Seal from my collection. The reason I originally bought it was because I am collecting the very unusual layout style that is featured on this note. Although there are many banks in the country named after counties, only a handful have the layout seen on this note with the words “County National” in a completely different font in a curved style underneath the name of the county. So far, I have only identified six banks nationwide that received this layout on their Series 1902 issues. Of these, I currently have five and am still looking for the last one as well as for any others I may not have yet identified. Clearly this is a very unusual and rare layout as very few series 1902 notes received unusual layout styles.

After the Chase County National Bank went into receivership in 1928, a couple years elapsed until Cottonwood Falls received its second national bank - the Exchange National Bank of Cottonwood Falls, which was chartered in January of 1903 and lasted through the end of the national currency era. This turned out to be a much larger bank because it also issued small size notes. It had a total issue of $1,163,000 and currently 20 large and more than 25 small notes are reported, making notes from this bank the easy ones to find from Cottonwood Falls. I have included photographs of both large and small notes issued by this bank.

Cottonwood Falls can be reached via U.S. Route 50 to Strong City and then State Route 177 South the five miles to Cottonwood Falls. The town is extremely attractive and is dominated by the gorgeous Chase County Courthouse at the end of Broadway Street. Although the historic downtown area of Cottonwood Falls is only three blocks long, it is filled with historic buildings and cute shops. The Chase County National Bank building is still standing on Broadway Street two blocks down from the courthouse. I have included a vintage photo showing the bank and the courthouse in the distance and a similar photo taken recently showing the same view. The bank is a classic 1880s structure and it’s not all that much changed though it now serves as the Chase County Historical Society Library and Museum. The Exchange National Bank building is directly adjacent to the old Chase County National Bank. It has been slightly enlarged and is still a bank, serving as the local branch of the Citizens State Bank.

There are many local waterfalls in the area that residents and visitors enjoy. I have included a photograph of the most picturesque of these, which is located in Chase Lake Park.

Although Cottonwood Falls clearly is off the beaten path, if anyone is driving through the area one would want to make sure to make a stop in Cottonwood Falls to enjoy the beautiful scenery the absolutely gorgeous courthouse and the opportunity to see a well-preserved small town.

Readers may address questions or comments about this article or national bank notes in general to Mark Hotz directly by email at markbhotz@gmail.com.