Treasury (Coin) Note
Encyclopedia
Fractional currency notes were issued by the United States Federal Government
during and after the U.S. Civil War
due to the hoarding and shortage of coin
s in gold
, silver
and copper
in denominations of 3, 5, 10, 15, 25 and 50 cents. These notes
were in use until 1876 and were redeemable by the U.S. Postal Office
at face value in postage stamps. A controversy arose concerning the third issue of the 5-Cent Notes, when Spencer M. Clark
, the first superintendent of the National Currency Bureau (now the U.S. Bureau of Engraving and Printing) had his portrait printed on the fractional note, a practice subsequently barred by law. (the currency can portray notable U.S. citizens only after at least two years have followed the subject's death).
Fractional currency notes were issued from August 21, 1862, through February 15, 1876. U.S. Secretary of the Treasury Salmon P. Chase
proposed to authorize postage stamp
s of some type as a new currency. Much of the public were using stamps in lieu of change due to a severe shortage of coins. The post office did not like selling stamps for currency and they did not provide refunds for soiled stamps. Congress and President Lincoln approved the Postage Currency Act on July 17, 1862, which authorized an issue of 5, 10, 25, and 50 cent notes. The 1st Issues became known as Postage Stamp Currency
because they bore facsimiles of the then current 5 and 10 cent postage stamps. Postage Currency (1st Issue) were never legal tender but could be exchanged for United States Notes in $5 lots and receivable in payment of all dues to the United States, up to $5. In the first few months of production, the sheets were perforated like stamps. These sheets were sold to banks and the public in sheets and you could tear off the notes needed with ease. The perforating machine could not keep up with the heavy demand so the banknote company started producing plain sheets that were cut with scissors. In 1863, Secretary Chase asked for a new Fractional Currency that was harder to counterfeit than the Postage Currency. The new Fractional Currency notes were different from the 1862 Postage Currency issues. They were more colorful with printing on the reverse.
Fractional currency was succeeded by postal notes that were issued from Monday, September 3, 1883 to Saturday, June 30, 1894.
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
during and after the U.S. Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
due to the hoarding and shortage of coin
Coin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
s in gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
and copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
in denominations of 3, 5, 10, 15, 25 and 50 cents. These notes
Banknote
A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
were in use until 1876 and were redeemable by the U.S. Postal Office
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
at face value in postage stamps. A controversy arose concerning the third issue of the 5-Cent Notes, when Spencer M. Clark
Spencer M. Clark
Spencer M. Clark was the first Superintendent of the National Currency Bureau, today known as the Bureau of Printing and Engraving, from 1862 to 1868.- Public service :...
, the first superintendent of the National Currency Bureau (now the U.S. Bureau of Engraving and Printing) had his portrait printed on the fractional note, a practice subsequently barred by law. (the currency can portray notable U.S. citizens only after at least two years have followed the subject's death).
Fractional currency notes were issued from August 21, 1862, through February 15, 1876. U.S. Secretary of the Treasury Salmon P. Chase
Salmon P. Chase
Salmon Portland Chase was an American politician and jurist who served as U.S. Senator from Ohio and the 23rd Governor of Ohio; as U.S. Treasury Secretary under President Abraham Lincoln; and as the sixth Chief Justice of the United States Supreme Court.Chase was one of the most prominent members...
proposed to authorize postage stamp
Postage stamp
A postage stamp is a small piece of paper that is purchased and displayed on an item of mail as evidence of payment of postage. Typically, stamps are made from special paper, with a national designation and denomination on the face, and a gum adhesive on the reverse side...
s of some type as a new currency. Much of the public were using stamps in lieu of change due to a severe shortage of coins. The post office did not like selling stamps for currency and they did not provide refunds for soiled stamps. Congress and President Lincoln approved the Postage Currency Act on July 17, 1862, which authorized an issue of 5, 10, 25, and 50 cent notes. The 1st Issues became known as Postage Stamp Currency
Postal currency
Postal Currency, or Postage Currency, was a form of US Post Office paper money printed in 5¢, 10¢, 25¢, and 50¢ denominations and issued from August 21, 1862 through May 27, 1863...
because they bore facsimiles of the then current 5 and 10 cent postage stamps. Postage Currency (1st Issue) were never legal tender but could be exchanged for United States Notes in $5 lots and receivable in payment of all dues to the United States, up to $5. In the first few months of production, the sheets were perforated like stamps. These sheets were sold to banks and the public in sheets and you could tear off the notes needed with ease. The perforating machine could not keep up with the heavy demand so the banknote company started producing plain sheets that were cut with scissors. In 1863, Secretary Chase asked for a new Fractional Currency that was harder to counterfeit than the Postage Currency. The new Fractional Currency notes were different from the 1862 Postage Currency issues. They were more colorful with printing on the reverse.
Fractional currency was succeeded by postal notes that were issued from Monday, September 3, 1883 to Saturday, June 30, 1894.
See also
- ShinplasterShinplasterShinplaster was a common name for paper money of low denomination circulating widely in the frontier economies of the 19th century. These notes were in various places issued by banks, merchants, wealthy individuals and associations, either as banknotes, or circulating IOUs. They were often a...
- Postal currencyPostal currencyPostal Currency, or Postage Currency, was a form of US Post Office paper money printed in 5¢, 10¢, 25¢, and 50¢ denominations and issued from August 21, 1862 through May 27, 1863...
- Postal notesPostal notesPostal notes were the specialized money order successors to the United States Department of the Treasury's postage and fractional currency. They were created so Americans could safely and inexpensively send sums of money under $5 to distant places.Postal Notes were privately produced by three...
- Treasury note
- Federal Reserve SystemFederal Reserve SystemThe Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
- United States Department of the TreasuryUnited States Department of the TreasuryThe Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...