antiqueweek.com
Auctions • Shows • Antiques • Collectibles
  
Search through 1000s of auctions listings by keyword.
Renaissance Auction Group
Recent Archives
Pixies continue to dance in our homes and hearts
Lock of Washington’s hair to highlight Bunch auction
Red Wing Collectors Society cancels summer convention
Cooper Hewitt shines spotlight on Suzie Zuzek
Superman tosses tank and wins a bid of $1,850
   
News Article
Fractional currency helped U.S. through coin shortage
By Eric Bryan

The Civil War caused a coin crisis that led to the production of postage currency, which can also be called fractional currency.

During the war, the Federal Government and banks soon began to refuse to redeem paper currency for coin. This led to worried citizens hoarding coins, which in turn led to a shortage of coins. Merchants and shoppers had to be creative when buying and selling goods. Various tokens, IOUs, and postage stamps served as the small change necessary for commerce.

The government soon realized formal action was required to deal with the coin crisis.

In 1862, U.S. Treasurer Francis E. Spinner sat down at his desk and created miniature bank notes using treasury paper and pasted-on postage stamps. He signed them with a signature he had perfected to avoid counterfeiting. Congress supported the plan and President Lincoln signed the issuing of the notes into law on July 17, 1862. The government adopted Spinner’s designs that year, creating miniature notes in 5, 10, 25, and 50 cents denominations. This first series was called postage currency because it kept the look of postage stamps; subsequent issues did not use the postage stamp design and were called fractional currency.

The bills measured from 2 ½ to 5 inches wide, 1 ½ to 2 ¼ inches high, and ranged in value from 3 to 50 cents. From 1862 to 1876, there were 23 different designs over five series of fractional currency.

Issue One

The first issue of fractional notes was printed between Aug. 21, 1862 and May 27, 1863. The government hired the National Bank Note Company for the engravings of the obverse, and the American Bank Note Company for the engravings of the reverse, of the bills. Notes without a monogram on the reverse are believed to have both sides printed by the NBNC and are a rare variety.

The early releases of the notes had perforated edges, like those of postage stamps. These were soon replaced by the straight-edged style. The perforated types of notes are scarcer and usually command higher values. All Issue One bills had “Postage Currency” printed on them.

Issue One was made up of four denominations of four varieties of each: perforated edge with or without reverse monogrammed, and straight edge with or without reverse monogrammed:

• Five cents: Jefferson on obverse, biscuit to light chocolate color.

• Ten cents: Washington on green obverse, black reverse.

• Twenty-five cents: Five 5-cent Jeffersons on obverse, biscuit to light chocolate.

• Fifty cents: Five 10-cent Washingtons on green obverse, black reverse.

Issue Two

The second issue was printed between Oct. 10 1863 and Feb. 23, 1867. To counteract counterfeits, the government introduced variations in paper, dimensions, and designs. Washington’s portrait appears on the obverse of all the bills in a gilded oval frame, leading Issue Two to be known as the Porthole Series. The gilding may have been an anti-counterfeit measure. The obverses also have vignettes featuring locomotives, steamships, and horse-drawn wagons — emblems of industry and industrial progress.

• Five cents: Bluish obverse, brick-red/brown reverse.

• Ten cents: Bluish obverse, green reverse.

• Twenty-five cents: Bluish obverse, purplish or black reverse.

• Fifty cents: Bluish obverse, reddish reverse.

Issue Three

The third issue was printed between Dec. 5, 1864 and Aug. 16, 1869. The US Bureau of Engraving created more artistic, complicated designs with hidden letters or numbers in an attempt to frustrate the growing number of counterfeiters. All denominations featured either actual or printed signatures, typically of the treasurer and register. Issue Three notes came in five denominations in more than 78 variations, and were printed on high-fiber paper.

• Three cents: Washington on black or bluish obverse, green reverse.

• Five cents: Spencer M Clark, Superintendent of the National Currency Bureau on black obverse; red or green reverse.

• Ten cents: Washington on black obverse with embossed and bronzed characters, red or green reverse

• Twenty-five cents: William Pitt Fessenden, Secretary of the Treasury on black or dark bluish obverse with embossed scrollwork; reddish or green reverse.

• Fifty cents: Lady Justice on black obverse with bronzing, red or green reverse. Printed on either standard or fiber-rich paper. This note appeared in a myriad of varieties.

• Fifty cents: General Francis E. Spinner, Treasurer of the United States on black or bluish obverse with bronzing; red or green reverse (two basic designs for latter).

Issue Four

This series was printed from July 14, 1869 to Feb. 16, 1875. The government used a special type of paper which contained silk fibers. Many of the fibers are large and easy to see in the paper. As an anti-counterfeiting measure, all of these notes had the Treasury Seal on the obverse. Some of the bills have a light pink pastel effect across the obverse, some of them giving way to a wispy blue to the right. Either color effect increases the value of a note.

• Ten cents: Lady Liberty on black or bluish obverse with red seal, green reverse. Some notes fade to bluish to right obverse.

• Fifteen cents: Columbia personified on black (some with pinkish) obverse with red seal, green reverse. Some notes fade to bluish to right obverse.

• Twenty-five cents: Washington on black (some with pinkish) obverse with red seal, green reverse. Some notes fade to bluish to right obverse.

• Fifty cents: Lincoln on black obverse with red seal, green reverse. The color of paper on obverse can be biscuit; the tone of the paper on the obverse can be of a different shade than that on the reverse.

• Fifty cents: Edwin M Stanton, Secretary of War, on black (some with pinkish, some bluish) obverse with red (shades vary) seal; green reverse. Some bills fade to bluish or almost violet to right obverse.

• Fifty cents: Samuel Dexter, Secretary of War, on black (some with pinkish) obverse with green seal; green reverse.

Issue Five

The fifth issue was printed from Feb. 26, 1874 to Feb. 15, 1876. At this time more gold and silver was being discovered in the West, the economy improved, the coin shortage began to ease and so the demand for fractional currency slackened. These notes were also printed on fiber-rich paper. Some of each denomination fade to bluish, on the right obverse.

• Ten cents: William M Meredith, Secretary of the Treasury on black obverse with red seal with short or long key, or green seal with long key; green reverse.

• Twenty-five cents: Robert J Walker, Secretary of the Treasury on black obverse with red seal with long or short key; green reverse.

• Fifty cents: William H Crawford, Secretary of the Treasury on black obverse with red seal; green reverse.0.

2/8/2019
Comments For This Post
Post A Comment
Name :
Email :
Comment :