Winchester Corporation Money

[Reconstructed Rebel]

Would anyone be able to provide more information about this type of currency used by a Confederate soldier at Gettysburg? Was this type of currency freely circulated along with that printed by the Confederate government? As the war went on, was this type of currency considered more valuable in the eyes of Southerners than that printed by their government? Many thanks for any information provided.

50 Cents, Corporation of Winchester, Virginia, United States, 1861

One (1) 50 cent noteVirginia, United States, 1861Obverse Image: Enslaved people picking and carrying cotton. A beehive in the center.Obverse Text: STATE…

americanhistory.si.edu

 

[Sowbelly and Hardtack]

Ridgeway Reference Archive, Currency Virginia

"Virginia currency, Corporation of Winchester, Winchester, Virginia, 50 cents, July 15, 1861.
Currency was issued by the local government of Winchester, Virginia, July 15, 1861, "STATE OF VIRGINIA. / Issued under the Act of the Corporation of December 15th, 1860. / DUE BY THE CORPORATION OF WINCHESTER. / FIFTY CENTS. / Payable in Virginia Bank Notes by the Treasurer to bearer on presentation of these due bills, in sums of FIVE DOLLARS."

I would guess as the war dragged on Southerners probably viewed all Confederate currency whether issued by the Government or State the same.

Confederate soldiers at Gettysburg used whatever money they had.

 

[Reconstructed Rebel]

Payable in Virginia Bank Notes by the Treasurer to bearer on presentation of these due bills,

Ok - so the paper money is still backed up by more paper money, not with gold?

 

[Sowbelly and Hardtack]

Cornerstone Contributions: Paying for Rebellion: Confederate Currency in the Lee Cornerstone Box – DHR

www.dhr.virginia.gov

"Confederate paper money was also considered a fiat currency with no gold or silver backing the notes. This meant that it was essentially a line of credit to the bearer of the notes."

 

[DaveBrt]

Ok - so the paper money is still backed up by more paper money, not with gold?

It clearly says Payable in Virginia Bank Notes.

 

[Reconstructed Rebel]

It clearly says Payable in Virginia Bank Notes.

I know I'm being dense because my grasp of finance is not….much. But wanted to verify Virginia Bank notes were not backed with gold. Apologies for asking such simplistic questions.

 

[DaveBrt]

I know I'm being dense because my grasp of finance is not….much. But wanted to verify Virginia Bank notes were not backed with gold. Apologies for asking such simplistic questions.

Notes are not back by anything but what they say on the note -- paper is backed by paper, unless the paper says otherwise.

 

[BillH]

Cornerstone Contributions: Paying for Rebellion: Confederate Currency in the Lee Cornerstone Box – DHR

www.dhr.virginia.gov

"Confederate paper money was also considered a fiat currency with no gold or silver backing the notes. This meant that it was essentially a line of credit to the bearer of the notes."

As was the case (and is now) with the bills printed by the Union... the back of this one explains it is "Legal Tender" and good for paying whatever you need to pay. When the war started the silver and gold coinage quickly disappeared from circulation in both the north and the South.

 

[Reconstructed Rebel]

When the war started the silver and gold coinage quickly disappeared from circulation in both the north and the South.

I have a one dollar 1863 gold coin (such a little coin,) from my great grandmother and in the past entertained myself with the thought it could have been used to pay soldiers or for who knows what during the war, but this statement makes me think that is a childhood fantasy. More likely it was just part of a hoard of gold the family kept for emergencies?