- Joined
- Aug 27, 2011
- Location
- Central Massachusetts
In the "Meet and Greet" forum, we have had a question regarding the shortage of coinage in the North during the Civil War. It's a subject that some others might find of interest; so that it doesn't get "lost," I thought I'd start a thread by repeating my response (while acknowledging that quoting yourself is notoriously bad form):
"The currency problem began late in 1861, when banks stopped exchanging greenbacks for gold. People began hoarding coins because they feared paper currency would soon be worthless. There were all kinds of stop-gap measures used, including the printing of paper fractional-currency in denominations as low as five cents. It got to the point in July, 1862, where Congress passed a law permitting the use of unused U. S. postage stamps as currency. Some merchants began to make cardboard, or base-metal disks designed to encase a stamp for use as change:
"Others went so far as to print envelopes such as the ones below and filled them with the appropriate combinations of stamps, for use as quarters, half-dollars, etc.:
"If you are tempted to collect any of these Civil War Stamp Envelopes, by the way, they currently sell for from $500 to close to $10,000 each!"
[Boston Daily Advertiser, July 31, 1862]
"The currency problem began late in 1861, when banks stopped exchanging greenbacks for gold. People began hoarding coins because they feared paper currency would soon be worthless. There were all kinds of stop-gap measures used, including the printing of paper fractional-currency in denominations as low as five cents. It got to the point in July, 1862, where Congress passed a law permitting the use of unused U. S. postage stamps as currency. Some merchants began to make cardboard, or base-metal disks designed to encase a stamp for use as change:
[Boston Daily Advertiser, July 31, 1862]
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