User:Godot13/sandbox/List of U.S. Fractional Currency

Fractional Currency, also referred to as “paper coins,” and Shinplasters, was introduced by the United States Federal Government following the outbreak of the Civil War. These notes were in use between 21 August 1862 and 15 February 1876, issued in 3, 5, 10, 15, 25, and 50 cent denominations across five issuing periods. The complete type set below is part of the National Numismatic Collection, housed at the National Museum of American History, part of the Smithsonian Institution.

The Civil War economy caused a shortage of United States coinage - gold and silver coins were hoarded given their intrinsic bullion value. In late December 1861, the United States Department of the Treasury suspended specie payments and banks in New York City stopped redeeming paper money for gold and silver resulting in the near total disappearance of coins from the marketplace. This created significant disruption across businesses and trade and fueled currency speculation (e.g., redeeming banknotes for silver coin which was then sold at a premium as bullion). Alternate methods of providing small change included the reintroduction of Spanish quarter dollars in Philadelphia, cutting dollar bills in quarters or halves, refusing to provide change (without charging a premium for providing silver coins), or the issuance of shinplasters, forbidden by law in many states.

Beginning in 1862, postage stamps were informally used by some in east coast cities to fill the void left by the absence of coinage, and the sale of postage stamps (e.g., in New York) rose almost tenfold. Civil War-era stamps had a very short life due to rapid deterioration. One attempt to increase the durability of stamps as an emergency medium of exchange was pioneered by businessman John Gault who proposed encasing the postage stamps in round brass cases with advertising on the reverse. The circulation was too small to effect any real change.

Postage currency
Secretary of the Treasury Francis E. Spinner has been credited with finding the solution to the shortage of coinage, and in doing so created Postage currency (which led into the use ofFractional currency. Postage (or postal) currency was the first of five issues of US Post Office fractional paper money printed in 5¢, 10¢, 25¢, and 50¢ denominations and issued from August 21, 1862 through May 27, 1863.

Spinner proposed using postage stamps, affixed to Treasury paper, with his signature on the bottom (see illustration below). Based on this initiative, Congress supported a temporary solution involving fractional currency and on 17 July 1862, President Lincoln signed the Postage Currency Bill into law. The intent however was not that stamps should be a circulating currency.

The design of the First Issue (Postage Currency) was directly based on Spinner’s original handmade examples. Some varieties even had perforated stamp-like edge. While not actually legal tender, postage currency could be exchanged for United States Notes in $5 lots and were receivable in payment of all dues to the United States, up to $5. Subsequent issues would no longer include images of stamps and were referred to as Fractional Currency.

In an October 1862 letter to the editor of the New York Times, a writer states that “Postage stamps are issued by the Post-office Department only, and by law they can be used only for the prepayment of postage…Postage currency is issued only by the Secretary of the Treasury or his Assistants pursuant to the Act of Congress approved July 17, 1862”. Despite the July 1862 legislation, postage stamps remained a form of currency until Postage Currency gained momentum in the spring of 1863.

Fractional currency
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 shields which had single sided specimens were sold to banks top provide a standard for comparison for detecting counterfeits. Postage and fractional currency remained in use until 1876 when Congress authorized the minting of fractional silver coins to redeem the outstanding fractional currency. Today, the original postage currency of 1862 is often collected alongside postage stamps of that era.

“…no portrait or likeness of any living person…”
Three people were depicted on fractional currency during their lifetime: Francis E. Spinner (Treasurer of the United States), William P. Fessenden (U.S. Senator and Secretary of the Treasury), and Spencer M. Clark (Superintendent of the National Currency Bureau). Both Spinner and Clark each decided to have their portrait depicted on currency, which created controversy. Republican Representative Martin R. Thayer of Pennsylvania was an outspoken critic, suggesting that the Treasury’s privilege of portrait selection for currency was being abused. On 7 April 1866, led by Thayer, Congress enacted legislation specifically stating “that no portrait or likeness of any living person hereafter engraved, shall be placed upon any of the bonds, securities, notes, fractional or postal currency of the United States.”

Varieties
The table is sorted in chronological issue order (series) by denomination (value). The varieties column briefly describes the subtle differences between varieties of notes that are categorized as the same general type. The brief table key defines and elaborates on frequently used terms in the varieties column.