In the summer of 1864, David L. How and Foster L. Balch opened a third Farmers Bank for business in the village of Shakopee, about 50 miles downstream and northeast of Mankato on the Minnesota River. They were both of Shakopee, and each put up half of the $27,500 in capital. Less than two years earlier, D. L. How issued fractional scrip in his town to help alleviate the ongoing small-change shortage.
Notes were first issued on September 12, 1864, and the last issue was on September 16, 1865. This is the final issue date for Minnesota state chartered banks. A total of $25,016 in notes was issued. Notes were last redeemed on August 17, 1866. At that date, $480 in notes remained outstanding.
The bank converted to the First National Bank of Shakopee, Charter 1597, in 1865.
Read more about the Recycling of Bank Plates for Minnesota’s Free Banks in Paper Money, journal of the Society of Paper Money Collectors.