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Fractional currency

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Fractional currency, also referred to as shinplasters, was introduced by the United States federal government following the outbreak of the Civil War. These low-denomination banknotes of the United States dollar were in use between August 21, 1862, and February 15, 1876, and issued in denominations of 3, 5, 10, 15, 25, and 50 cents across five issuing periods.[1][2][3] 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.[nb 1]

Fifty-cent fractional currency depicting Francis E. Spinner, with autograph signature
Fifty-cent fractional currency depicting Francis E. Spinner, with autograph signature.

History

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Encased postage designed by John Gault.

The Civil War economy catalyzed a shortage of United States coinage[4]—gold and silver coins were hoarded given their intrinsic bullion value relative to irredeemable paper currency at the time.[5][6] In late 1861, to help finance the Civil War, the U.S. government borrowed gold coin from New York City banks in exchange for Seven-thirties treasury notes[7] and the New York banks sold them to the public for gold to repay the loan.[7] In December 1861, the Trent Affair shook public confidence with the threat of war on a second front. The United States Department of the Treasury suspended specie payments[8] and banks in New York City stopped redeeming paper money for gold and silver.[9] In the absence of gold and silver coin, the premium for specie began to devalue paper currency.[10] After the New York banks suspended specie payments (quickly followed by Boston and Philadelphia)[11] the premium on gold rose from 1–3% over paper in early January 1862 to 9% over paper in June 1862,[10] by which time one paper dollar was worth 91.69 cents in gold.[10] This fueled currency speculation (e.g., redeeming banknotes for silver coin which was then sold at a premium as bullion),[12] and created significant disruption across businesses and trade.[13] Alternate methods of providing small change included the reintroduction of Spanish quarter dollars in Philadelphia,[13] cutting dollar bills in quarters or halves,[14] refusing to provide change (without charging a premium for providing silver coins),[14] or the issuance of locally issued shinplasters (i.e., those issued by businesses or local municipalities), which was forbidden by law in many states.[14]

Treasurer of the United States Francis E. Spinner has been credited with finding the solution to the shortage of coinage: he created postage currency (which led into the use of fractional currency).[15] Postage (or postal) currency was the first of five issues of US Post Office fractional paper money printed in 5-cent, 10-cent, 25-cent, and 50-cent denominations and issued from August 21, 1862, through May 27, 1863.[16] Spinner proposed using postage stamps, affixed to Treasury paper,[17] with his signature on the bottom (see illustration below). Based on this initiative, Congress supported a temporary solution involving fractional currency and on July 17, 1862, President Lincoln signed the Postage Currency Bill into law.[3] The intent, however, was not that stamps should be a circulating currency.[18]

The design of the first issue (postage currency) was directly based on Spinner's original handmade examples. Some varieties even had a perforated stamp-like edge. While not considered a legal tender, postage currency could be exchanged for United States Notes in $5 lots[19] and were receivable in payment of all dues to the United States, up to $5.[nb 2] Subsequent issues would no longer include images of stamps and were referred to as Fractional Currency. Despite the July 1862 legislation, postage stamps remained a form of currency until postage currency gained momentum in the spring of 1863.[20] 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.[nb 3] They were more colorful with printing on the reverse, and several anti-counterfeiting measures were employed: experimental paper, adding surcharges, overprints, blue endpaper, silk fibers, and watermarks to name a few. Fractional currency shields which had single-sided specimens were sold to banks to provide a standard for comparison for detecting counterfeits.[21] Postage and fractional currency remained in use until 1876, when Congress authorized the minting of fractional silver coins to redeem the outstanding fractional currency.[15][22]

Issuing periods and varieties

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Issuing periods of United States fractional currency
Issuing period Period dates Denominations issued Features/varieties[23]
First issue Aug 21, 1862
May 27, 1863 		$0.05
$0.10
$0.25
$0.50 		Issued as postage currency with two main varieties: 1) edges (straight versus perforated), and 2) monogram (presence or absence of the American Bank Note Co. monogram (ABCo) on the reverse).[nb 4] All four denominations bear the stamp motif on the obverse.
Second issue October 10, 1863
Feb 23, 1867 		$0.05
$0.10
$0.25
$0.50 		Introduction of numerous anti-counterfeiting measures: bronze oval (obverse), bronze ink surcharge (reverse), use of fiber paper.[nb 5]
Third issue December 5, 1864
Aug 16, 1869 		$0.03
$0.05
$0.10
$0.25
$0.50 		Sporadic use of surcharges, signatures introduced (except 3-cent) both printed (PS) and autographed (AS), design features (or position indicators) – either the letter "a", the number "1", or both, on the extreme left obverse.[25]
Fourth issue July 14, 1869
Feb 16, 1875 		$0.10
$0.15
$0.25
$0.50 		Additional anti-counterfeiting measures: watermarked paper ("US"), embedding of large silk fibers, blue tinted end paper.[26]
Fifth issue February 26, 1874
Feb 15, 1876 		$0.10
$0.25
$0.50 		Color tinting in paper, silk fibers.[27]
  • Inspiration, model, and proof for the first issue (postage currency)
  •  
    Spinner's initial signed design (photo)
  •  
    Original model artwork
  •  
    Working proof with pencil notations

Complete type set of United States fractional currency

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Value Series Size[nb 6] Fr. no.[nb 7] Image Portrait Varieties[nb 8]
$0.05 First issue 65 × 43.5 mm Fr.1231   Thomas Jefferson 1228 – Perforated; monogram
1229 – Perforated; no monogram
1230 – Straight; monogram
1231 – Straight; no monogram
$0.10 First issue 65 × 43.5 mm Fr.1240   George Washington 1240 – Perforated; monogram
1241 – Perforated; no monogram
1242 – Straight; monogram
1243 – Straight; no monogram
$0.25 First issue 78 × 48 mm Fr.1280   Thomas Jefferson 1279 – Perforated; monogram
1280 – Perforated; no monogram
1281 – Straight; monogram
1282 – Straight; no monogram
$0.50 First issue 78 × 48 mm Fr.1312   George Washington 1310 – Perforated; monogram
1311 – Perforated; no monogram
1311a – Same, except 14 versus 12 perf/20 mm
1312 – Straight; monogram
1314 – Straight; no monogram
$0.05 Second issue 65.5 × 47 mm Fr.1232   George Washington 1232 – No surcharge
1233 – Surcharge "18-63"
1234 – Surcharge "18-63" and "S"
1235 – Surcharge "18-63" and "R-1"; Fiber paper
$0.10 Second issue 65.5 × 47 mm Fr.1246   George Washington 1244 – No surcharge
1245 – Surcharge "18-63”
1246 – Surcharge "18-63" and "S”
1247 – Surcharge "18-63" and "I”
1248 – Surcharge "0-63"
1249 – Surcharge "18-63” and "T-1"
$0.25 Second issue 65.5 × 47 mm Fr.1284   George Washington 1283 – No surcharge.
1284 – Surcharge "18-63"
1285 – Surcharge "18-63" and "A"
1286 – Surcharge "18-63" and "S"
1287 – Unissued Friedberg number
1288 – Surcharge "18-63" and "2"
1289 – Surcharge "18-63" and "T-1"; fiber paper
1290 – Surcharge "18-63" and "T-2"; fiber paper
$0.50 Second issue 65.5 × 47 mm Fr.1322   George Washington 1314 – No surcharge
1315 – Unissued Friedberg number
1316 – Surcharge "18-63"
1317 – Surcharge "18-63" and "A"
1318 – Surcharge "18-63" and "1"
1319 – Unissued Friedberg number
1320 – Surcharge "18-63" and "0-1"; fiber paper
1321 – Surcharge "18-63" and "R-2"; fiber paper
1322 – Surcharge "18-63" and "T-1"; fiber paper
$0.03 Third issue 66 × 40.5 mm Fr.1226   George Washington 1226 – Portrait light background
1227 – Portrait dark background
$0.05 Third issue 64 × 46 mm Fr.1238   Spencer Clark 1236 – Red reverse
1237 – Red reverse; design letter "a"
1238 – Green reverse
1239 – Green reverse; design letter "a"
$0.10 Third issue 81 × 47 mm Fr.1254   George Washington
1251 – 1254 Red reverse
1251 – Red reverse
1252 – Red reverse; design numeral "1"
1253 – Red reverse; (AS) Colby and Spinner
1254 – Red reverse; (AS) Jeffries and Spinner

1255 – 1256 Green reverse
1255 – Green reverse
1255a – Green reverse; (AS) Colby and Spinner
1256 – Green reverse; design numeral "1"
$0.25 Third issue 95.5 × 47 mm Fr.1294   William Fessenden
1291 – 1293 Red reverse
1291 – Red reverse
1292 – Red reverse; design letter "a"
1293 – Friedberg number removed from use

1294 – 1300 Green reverse
1294 – Green reverse
1295 – Green reverse; design letter "a"
1296 – Green reverse; large design letter "a"
1297 – Green reverse; surcharge "M-2-6-5"; fiber paper
1298 – Green reverse; same as 1297; design letter "a"
1299 – Green reverse; surcharge "M-2-6-5"; obverse ornamental designs in sold bronze overprint; fiber paper
1300 – Green reverse; same as 1299; design letter "a"
$0.50 Third issue 114 × 48 mm Fr.1328   Francis Spinner
1324 – 1330 Red reverse; surcharge "A-2-6-5"

1324 – Red reverse; surcharge "A-2-6-5"; no design figures
1325 – Red reverse; surcharge "A-2-6-5"; design figures "1" and "a"
1326 – Red reverse; surcharge "A-2-6-5"; design figure "1"
1327 – Red reverse; surcharge "A-2-6-5"; design figure "a"
1328 – Red reverse; surcharge "A-2-6-5"; (AS) Colby and Spinner
1329 – Red reverse; surcharge "A-2-6-5"; (AS) Allison and Spinner
1330 – Red reverse; surcharge "A-2-6-5"; (AS) Allison and New

1331 – 1334 Green reverse; no surcharge

1331 – Green reverse; no surcharge; no design figures
1332 – Green reverse; no surcharge; design figures "1" and "a"
1333 – Green reverse; no surcharge; design figure "1"
1334 – Green reverse; no surcharge; design figure "a"

1335 – 1338 Green reverse; surcharge "A-2-6-5"

1335 – Green reverse; surcharge "A-2-6-5"; no design figures
1336 – Green reverse; surcharge "A-2-6-5"; design figures "1" and "a"
1337 – Green reverse; surcharge "A-2-6-5"; design figure "1"
1338 – Green reverse; surcharge "A-2-6-5"; design figure "a"

$0.50 Third issue 114 × 48 mm Fr.1339   Francis Spinner 1339 – Green reverse; no surcharge or design figures
1340 – Green reverse; design figures "1” and "a"
1341 – Green reverse; design figure "1"
1342 – Green reverse; design figure "a"
$0.50 Third issue 114 × 48 mm Fr.1355   Justice holding scales
1343 – 1346 Red reverse; no surcharge
1343 – Red reverse; no surcharge; no design figures
1344 – Red reverse; no surcharge; design figures "1" and "a"
1345 – Red reverse; no surcharge; design figure "1"
1346 – Red reverse; no surcharge; design figure "a"

1347 – 1350 Red reverse; surcharge "A-2-6-5"

1347 – Red reverse; surcharge "A-2-6-5"; no design figures
1348 – Red reverse; surcharge "A-2-6-5"; design figures "1" and "a"
1349 – Red reverse; surcharge "A-2-6-5"; design figure "1"
1350 – Red reverse; surcharge "A-2-6-5"; design figure "a"

1351 – 1354 Red reverse; surcharge "S-2-6-4"; (PS)

1351 – Red reverse; surcharge "S-2-6-4"; (PS); no design figures; fiber paper
1352 – Red reverse; surcharge "S-2-6-4"; (PS); design figures "1" and "a"; fiber paper In 2004, a Fr. 1352 (one of only three known), sold at public auction for $126,500.[30]
1353 – Red reverse; surcharge "S-2-6-4"; (PS); design figure "1"; fiber paper
1354 – Red reverse; surcharge "S-2-6-4"; (PS); design figure "a"; fiber paper

1355 – 1357 Red reverse; (AS) Colby and Spinner

1355 – Red reverse; (AS) Colby and Spinner; no surcharge or design figures
1356 – Red reverse; (AS) Colby and Spinner; surcharge "A-2-6-5"
1357 – Red reverse; (AS) Colby and Spinner; surcharge "A-2-6-4"; fiber paper

1358 – 1361 Green reverse; no surcharge

1358 – Green reverse; no surcharge; no design figures
1359 – Green reverse; no surcharge; design figures "1" and "a"
1360 – Green reverse; no surcharge; design figure "1"
1361 – Green reverse; no surcharge; design figure "a"

1362 – 1365 Green reverse; surcharge "A-2-6-5" (narrow)

1362 – Green reverse; surcharge "A-2-6-5" (narrow); no design figures
1363 – Green reverse; surcharge "A-2-6-5" (narrow); design figures "1" and "a"
1364 – Green reverse; surcharge "A-2-6-5" (narrow); design figure "1"
1365 – Green reverse; surcharge "A-2-6-5" (narrow); design figure "a".
*narrow – spacing of the surcharge

1366 – 1369 Green reverse; surcharge "A-2-6-5" (wide)

1366 – Green reverse; surcharge "A-2-6-5" (wide); no design figures
1367 – Green reverse; surcharge "A-2-6-5" (wide); design figures "1" and "a"
1368 – Green reverse; surcharge "A-2-6-5" (wide); design figure "1"
1369 – Green reverse; surcharge "A-2-6-5" (wide); design figure "a"
*wide – spacing of the surcharge

1370 – 1373a Green reverse; surcharge "A-2-6-5"; fiber paper

1370 – Green reverse; surcharge "A-2-6-5"; fiber paper; no design figures
1371 – Green reverse; surcharge "A-2-6-5"; fiber paper; design figures "1" and "a"
1372 – Green reverse; surcharge "A-2-6-5"; fiber paper; design figure "1"
1373 – Green reverse; surcharge "A-2-6-5"; fiber paper; design figure "a"
1373a – Green reverse; surcharge "A-2-6-4"; fiber paper; (PS); no design figure

$0.10 Fourth issue 79 × 46 mm Fr.1259   Bust of Liberty 1257 – Large red seal; watermarked; silk fibers (pink)
1258 – Large red seal; silk fibers (pink)
1259 – Large red seal; silk fibers (violet); blue end paper
1260 – Does not exist
1261 – Smaller red seal; silk fibers (violet); blue end paper
$0.15 Fourth issue 89 × 46 mm Fr.1269   Bust of Columbia 1267 – Large red seal; watermarked; silk fibers (pink)
1268 – Large red seal; silk fibers (pink)
1269 – Large red seal; silk fibers (violet); blue end paper
1270 – Does not exist
1271 – Smaller red seal; silk fibers (violet); blue end paper
$0.25 Fourth issue 96.5 × 46 mm Fr.1303   George Washington 1301 – Large red seal; watermarked; silk fibers (pink)
1302 – Large red seal; silk fibers (pink)
1303 – Large red seal; silk fibers (violet); blue end paper
1307 – Smaller red seal; silk fibers (violet); blue end paper[nb 9]
$0.50 Fourth issue 106 × 47 mm Fr.1374   Abraham Lincoln 1374 – Large seal; watermarked; silk fibers (pink)
1375 – Delisted Friedberg number
$0.50 Fourth issue 103 × 46 mm Fr.1376   Edwin Stanton 1376 – Small red seal; silk fibers (violet); blue end paper
$0.50 Fourth issue 95 × 52 mm Fr.1379   Samuel Dexter 1379 - Green seal; silk fibers (light violet); blue end paper
$0.10 Fifth issue 81 × 51 mm Fr.1265   William Meredith 1264 – Green seal
1265 – Red seal; long, thin key (in Treasury seal)
1266 – Red seal; short, thick key (in Treasury seal)
$0.25 Fifth issue 88.5 × 51.5 mm Fr.1308   Robert Walker 1308 – Long, thin key (in Treasury seal)
1309 – Short, thick key (in Treasury seal)
$0.50 Fifth issue 109.5 × 53.5 mm Fr.1381   William Crawford 1380 – Red seal; light pink paper on obverse; silk fibers
1381 – Red seal; blue end paper; silk fibers

Portraits of living individuals

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The Sherman–Grant 15-cent third issue exists only as an unissued specimen.

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).[32] Both Spinner and Clark decided to have their portrait depicted on currency, which created controversy.[33] Republican Representative Martin R. Thayer of Pennsylvania was an outspoken critic, suggesting that the Treasury's privilege of portrait selection for currency[34] was being abused.[nb 10] On April 7, 1866, led by Thayer,[36] 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."[37] On the date of passage, a number of plates for the new 15-cent note depicting William Tecumseh Sherman and Ulysses S. Grant had been completed, as the plate proofs for these exist in the archives of the Smithsonian Institute's National Museum of American History. However, the plates were never used to produce notes for circulation. The only Sherman-Grant examples produced were single sided specimens that were placed on Fractional Currency Shields.[38]

See also

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References

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Notes

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  1. ^ All images are courtesy of the Smithsonian Institution.
  2. ^ The payment obligation printed on first-issue notes states they are "Exchangeable for United States Notes by any Assistant Treasurer or designated U.S. Depositary in sums not less than five dollars. Receivable in payments of all dues to the U. States less than five dollars."[1]
  3. ^ The payment obligation for the second issue was slightly different: "Exchangeable for United States Notes by the Assistant Treasurer and designated depositories of the U.S. in sums not less than three dollars. Receivable in payment of all dues to the United States less than five dollars except customs."[1]
  4. ^ The reverse of the first issue was originally printed by the National Bank Note Company. As a security precaution, the Treasury moved the printing contract to the American Bank Note Company who added their monogram ABC to the reverse of the remaining first-issue notes.[1]
  5. ^ Also known as membrane paper; two sheets of paper bonded together with fibers embedded.[24]
  6. ^ Sort by size is based on the surface area of the note in millimeters-squared. Margins and cut may affect the listed dimensions, but generally not more than +/- 2 mm
  7. ^ "Fr" numbers refer to the numbering system in the widely used Friedberg reference book. Fr. numbers indicate varieties existing within a larger type design.[28]
  8. ^ Varieties are taken from the standard paper money reference by Arthur and Ira Friedberg,[23] with additional descriptions in the Kravitz collector's guide[29]
  9. ^ Fr.1304, 1305, and 1306 are unassigned.[31]
  10. ^ "But now we see upon our current paper money not only the heads of the illustrious men of our country long since gathered to their fathers, but of living secretaries of the Treasury, and even of such subordinate officers as the superintendent of the Currency Printing Bureau, Mr. S.M. Clark."[35]

References

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  1. ^ a b c d Friedberg & Friedberg, p. 174.
  2. ^ Cuhaj, p. 401.
  3. ^ a b Kravitz
  4. ^ "Pastimes: Numismatics". The New York Times. March 5, 1989. Archived from the original on October 19, 2022. Retrieved May 3, 2013.
  5. ^ Anderson, p. 303.
  6. ^ Reed, p. 298.
  7. ^ a b Mitchell, 1903, pp. 27–32.
  8. ^ Mitchell, 1902, p. 537.
  9. ^ Mitchell, 1903, pp. 37–38.
  10. ^ a b c Mitchell, 1902, p. 552.
  11. ^ Mitchell, 1903, p. 41.
  12. ^ Mitchell, 1902, p. 540.
  13. ^ a b Mitchell, 1902, p. 553.
  14. ^ a b c Mitchell, 1902, p. 554.
  15. ^ a b Blake, p. 32.
  16. ^ Knox, p. 104.
  17. ^ Spaulding, Elbridge Gerry (1869). History of the Legal Tender Paper Money issued during the Great Rebellion. Buffalo NY: Express Printing Co. pp. 165–166.
  18. ^ "History Timeline". Bureau of Engraving and Printing. Archived from the original on January 14, 2014. Retrieved May 3, 2013. {{cite journal}}: Cite journal requires |journal= (help)
  19. ^ Knox, p. 103.
  20. ^ Reed, p. 302.
  21. ^ Friedberg & Friedberg, p. 182.
  22. ^ Knox, pp. 104 and 109.
  23. ^ a b Friedberg & Friedberg, pp. 174–81.
  24. ^ Kravitz, p. 32.
  25. ^ Kravitz, pp. 34–39.
  26. ^ Kravitz, pp. 40–41.
  27. ^ Kravitz, p. 41.
  28. ^ Friedberg & Friedberg
  29. ^ Kravitz, pp. 30–41.
  30. ^ Heritage Currency Auctions – Central States 2005. Ivy Press. 2005. p. 65. ISBN 1932899642. Retrieved September 9, 2013.
  31. ^ Friedberg & Friedberg, p. 178.
  32. ^ "BEP Directors – Spencer M. Clark". Bureau of Engraving and Printing. Archived from the original on September 21, 2013. Retrieved September 9, 2013.
  33. ^ Cuhaj, p. 407.
  34. ^ "Portraits & Designs". U.S. Treasury Website. Archived from the original on August 5, 2012. Retrieved September 9, 2013. {{cite journal}}: Cite journal requires |journal= (help)
  35. ^ "Congress". The Nation. 2. New York: Joseph H. Richards: 387. March 29, 1866. Retrieved September 9, 2013.
  36. ^ Rothbard, p. 126.
  37. ^ National Monetary Commission, p. 191.
  38. ^ Friedberg & Friedberg, p. 183.

Books and journals

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Further reading

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