Red dog money. In the early part of the last century (prior to the formation of the State Bank of
Indiana in 1834) the state of Indiana issued circulating notes (money) in denominations of $5, $10
and $20. They were receivable for taxes and bore interest. They depreciated in value to 60 cents
on the dollar and the opprobrious name of "red dog money" was applied to them. They were all
finally redeemed at their full value.  The term "red dog money" (or yellow dog money) came into
general use in describing depreciated notes issued by other states and by banks in other states
than Indiana. The term was practically synonymous with "wildcat money;" see Wildcat money.