TRIVIA: Paper Nickels, Dimes, Quarters and Halves

Clinker · 05-15-2009, 10:47 AM

Paper Nickels, Dimes, Quarters and Halves?

Some of you have guessed the subject of this post, but many of you are thinking, "I know coins have those denominations (5 Cents, 10 Cents, 25 Cents and 50 Cents), wooden Nickels were produced by U.S. companies and one South African nation produced a Maple Wood coin for general circulation plus there are metal store tokens bearing various "in trade." amounts."

During the second year (1862) of the Civil War when the U.S. Mint couldn't produce enough metal coinage for commerce small change became so scarce people resorted to the use of postage stamps as change. This was looked upon with distaste by the United States Postal Service as the practice created long lines at the service counters and there was much heated bickering when a citizen tried to redeem dirty, dog-eared, or damaged glue-back postage stamps and redemption was refused.

Secretary of the Treasury, Salmon Chase sought congressional approval for creation of postage stamp notes as a new type of decimal currency.

President Lincoln agreed and, with authorization by Congress, he signed the Postal Currency Act into law on July 17, 1862.

This new "Postage Stamp Currency" was issued in several denominations, but I'm only writing about the 5, 10, 25 and 50 Cent notes. At first this "Postage Stamp Currency" was produced on sheets just like the United States postage stamps (including the perforations).

The "Postage Stamp Currency" sheets were sold to banks, businesses and the public, but demand was so strong the perforating machines of the decade couldn't keep up so the banknote company started producing plain currency sheets without the perforations. Many notes were destroyed as scissors' cuts went awry.

NOTE: "Postage Stamp Currency" were never legal tender but could be exchanged for United States Notes in $5 lots and receivable in payment of all dues (taxes, fees,etc.) to the United States, up to $5.

So there you have the first paper decimal issues of paper Nickels, Dimes, Quarters, and Halves, but that's not all!

In 1863 Secretary Chase asked for a better paper decimal currency that would be harder to counterfeit and be strong enough to last longer. That change came in October of 1863 and a new name arrived at the same time, "Fractional Currency."

Another name was given to the new currency by the general public, "Shinplaster."

More changes greatly improved the paper "Shinplasters" in following issues.

Want to see photos of the paper coins (notice issue dates and "in use" dates)? Please scroll slowly so you can fully appreciate the notes and their term of usage.

The link wiil give you access to Rebel States Currency website:

http://www.rebelstatescurrency.com/page8.html

Now, lest you think paper decimal currency (shinplaster) occurred only in the U.S.A. click this next link (courtesy of wikipedia):

http://en.wikipedia.org/wiki/File:Sh...anada_1900.jpg

Hope this post added to your numismatic knowledge...

Clinker

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