A new thread, parallel to an existing thread that that deals with the same problem in the CSA.
In February 1853 an act was passed in the United States congress that reduced the silver content of all silver coins other than the dollar. As the new coins had an actual silver value less than their nominal face value, all prior silver coinage disappeared from circulation. This included foreign coins that had circulated, with official sanction, until 1857. Further hoarding of silver during the Civil War resulted in the virtual disappearance of silver coins in circulation.
During the Civil War substitutes for small change were needed. Temporary measures included the use of postage stamps, scrip, and tokens as money. The government began issuing fractional paper currency in 1862 which continued in widespread use until the Specie Resumption Act of 1875 resulting in a more stable monetary system.
In February 1853 an act was passed in the United States congress that reduced the silver content of all silver coins other than the dollar. As the new coins had an actual silver value less than their nominal face value, all prior silver coinage disappeared from circulation. This included foreign coins that had circulated, with official sanction, until 1857. Further hoarding of silver during the Civil War resulted in the virtual disappearance of silver coins in circulation.
During the Civil War substitutes for small change were needed. Temporary measures included the use of postage stamps, scrip, and tokens as money. The government began issuing fractional paper currency in 1862 which continued in widespread use until the Specie Resumption Act of 1875 resulting in a more stable monetary system.