Fillmore County Bank on March 31, 1859 with a capital of $25,000. They immediately sold their interest to R. A. Kemp of Preston, who further increased the capital, and J. M. Marshall of Saint Paul. While Kemp was 99% owner in name, his backing was provided by William R. Marshall, who was heavily invested in the railroads. The sole purpose of the bank was to intermediate railroad bonds, and they were used entirely to back the bank’s circulation.
On March 31, 1859 the auditor authorized American Bank Note Company to engrave a 1-1-2-5 plate. A total of 4,000 sheets were printed amounting to $36,000. A total of $25,000 in notes was issued in a single shipment to the bank.
Notes were first issued on May 28, 1859, but Marshall was not able to distribute many of the notes. The bank refused to redeem its notes on July 29, and notes were eventually redeemed at the Auditor’s Office at 20 cents on the dollar. Nearly all the circulation was returned to claim the railroad bonds on deposit with the auditor. A total of $230 was left unredeemed. The bank note plate was destroyed by the auditor on May 10, 1860. The auditor destroyed $11,000 in remainder notes on June 1, 1860.