Goshen: Butter Money

   
Wikipedia: Goshen, New York
Goshen is a town in Orange County, New York, United States. The population was 14,571 at the 2020 census. The town is named after the Biblical Land of Goshen. It contains a village also called Goshen, which is the county seat of Orange County.
 
 
The Neversink Valley Museum of History & Innovation
The Railroads Change the Dairy Industry
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The first regular supply of butter for the New York City market was manufactured in Orange County and bordering portions of Sussex County, New Jersey. Since Goshen was at the center of this area and was the Orange County seat, this butter became known as “Goshen Butter” and was famous around the country. The Orange county farmers had built up a highly profitable trade in butter and had made a national reputation for it. Butter keeps much better than milk and is well suited for long journeys to market. This was a natural incentive to direct as much milk as possible to butter production.
 
The booming business in “Goshen Butter” was built in the 1830’s, well before the railroads arrived. The “Goshen Butter” farmers had all agreed that their butter would be sent to New York City on the same day of each year. The day chosen was the second Tuesday in November. During the winter and summer months the butter was put up in firkins. One contemporary account of “the Day of the Big Trip”, describes how the butter would be carted north along the Goshen – Bloomingburg Turnpike on large market wagons to the great Newburgh – Cochecton Turnpike and thence eastward to Newburgh. At Newburgh the butter would be loaded on barges that were then towed to New York City by Hudson River steamboats, arriving at dockside a day later.
 
“Goshen Butter” was so famous that the National Bank of Orange County, one of the nation’s wealthiest local corporations at the time, printed its currency on yellow paper to commemorate the important role money from the butter trade played in its founding. These banknotes were popularly nicknamed “butter money”. The first President of the bank was George Duncan Wickham, a prominent local investor and one of Orange County’s most powerful men. He saw the value in Goshen Butter and had some involvement in the butter trade. Wickham was also a strong advocate for developing the local transportation infrastructure and was a director of both the D&H Canal Company and the Erie Railroad.
 
One of America’s first brands was “Goshen Butter”. The butter wholesale house of Van Auken & Cook gained control of the butter trade and established the name “Goshen Butter”. It is due to them that the name became so well-known. The term “Goshen Butter” was particularly well-known in the South. As early as 1812 New York butter wagons were regularly traveling at least as far south as South Carolina. The butter was even available in Savannah, Georgia prior to the Civil War. The blockade of Confederate ports during the Civil War led Southern commentators to lament the cut-off of “Goshen Butter”. After the end of the war, one of the first products shipped to the South was “Goshen Butter”. At the time, correspondents rejoiced that this trade had resumed.
 
When the railroads finally entered the scene, the genuine “Goshen Butter” trade of Orange and Sussex Counties rapidly declined. The railroads dramatically reduced the time it took to move dairy products to market making milk transport to the city viable. Making butter took more effort than simply shipping raw milk and the “Goshen Butter” farmers abandoned the butter trade in droves.
 
24 December 1764, New-York (NY) Gazette, pg. 6, col. 2:
A Few FIRKINS of Choice
GOSHEN BUTTER,
Fit for Family Use,
TO BE SOLD BY
ROBERT RAY,
At his House near the Old Dutch Church.
 
Newspapers.com
27 January 1802, Aurora General Advertiser (Philadelphia, PA), pg. 2, col. 2 ad:
FOR SALE,
20,000 wt. of Cohsen CHEESE, in casks,
 
17 May 1802, Commerical Advertiser (New York, NY), pg. 3, col. 2 ad:
GROCERY, PROVISION & FRUIT STORE,
No. 123 FLY-MARKET.
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2000 lb. first quality Goshen Cheese.
 
Old Fulton Post Cards
27 February 1878, Independent Republican 9Goshen, NY), pg. 2, col. 2:
The yellow “butter money” of Orange county had a wide renown. The old bills have nearly all been retired.
 
Newspapers.com
11 December 1879, The Courier-Journal (Louisville, KY), “Gloster’s Hoof” by H. L. D., pg. 2, col. 6:
To my mind it all of this goes to prove that Orange county, which has always been famous for something, is now pre-eminent for its horses. in old times it came to the front with its milk and butter, and at Goshen, the county seat, the bank for many years issued yellow bills which were far and near known as “butter money,” and were always as good as gold.
 
Google Books
History of Orange County, New York
Compiled by E. M. Ruttenber and L. H. Clark
Philadelphia, PA: Everts & Peck
1881
Pg. 542:
Before the reorganization of this bank (National Bank of orange County, before 1865 - -ed)) under the national banking law, and while transacting business under its charter from the State, its bills were printed upon the yellow tinted paper, which in consequence of their peculiar color, and the locality from which they originated, were known not only throughout the county, but the country, as “butter money.”
 
Mr. (Ambrose S.—ed.) Murray’s yellow money, in consequence of his strict integrity and business capacity, was considered wherever and whenever presented equal to gold, and many of these notes may still be found in the possession of those who secretly treasure them as mementoes of the past.
 
NYS Historic Newspapers
17 February 1882, The Tri-States Union (Port Jervis, NY), “A Verminous Vagrant,” pg. 5, col. 2:
... and some of the yellow bills of the Orange County Bank of Goshen, known as butter money.
 
Newspapers.com
28 August 1889, Scranton (PA) Republican, “A Little Coal History,” pg.
Orange County Bank furnished the company a good deal of money. It was “yaller,” and we called it butter money.
 
Newspapers.com
26 May 1895, New-York (NY) Daily Tribune, pg. 6, col. 6:
Old bills of the Orange County Bank, known in bygone years as “Butter money,” are occasionally unearthed, although nearly all that were issued have long since been redeemed.
 
Newspapers.com
8 June 1895, Spirit of the Age (Woodstock, VT), “Butter Money,” pg. 4, col. 1:
Old bills of the Orange County Bank, known in bygone years as “Butter money,” are occasionally unearthed, although nearly all that were issued have long since been redeemed. (...) New York Tribune.
 
WPDH (Hudson Valley, NY)
Roadside Marker in HV Tells Forgotten Tale of Historic Factory
Published: January 4, 2019
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The sign is located next to a fenced off natural spring near the intersection of Route 207 and Maybrook Road in Campbell Hall and says:

This spring, with an abundance of cool water, determined the site of the first butter factory in the United States
1856

Owned by R.W. Woodhull, the factory was run by George Gouge, a famous butter maker who figured out how to mass produce butter and distribute it to the rest of the country.
 
At the time, Orange County was well known for producing “Goshen Butter.” According to the Neversink Museum, New York was the country’s leading supplier of dairy products during the 18th century. Farmers around the Goshen area supplied all of New York City with butter and eventually became famous all over the country. Goshen Butter was transported on wagons as far south as the Carolinas to be sold in stores. In fact, as the Civil War began, many in the South became angry after supplies from the North were cut off and they could no longer get their beloved Goshen Butter.
 
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Historical markers and the places they represent In New York State ·
Michael Green ·
January 2, 2022 at 11:26 AM ·
Hamtonburgh, a few miles outside of Goshen. It’s been claimed that “Goshen Butter” was the first example of successful brand creation in the U.S.  The local bank printed its notes on yellow paper, sometimes called “butter money”.
(A “BUTTER FACTORY” history sign is shown.—ed.)