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:Shinplaster_Canada_1900.jpg Hope this post added to your numismatic knowledge... Clinker
Sorry Clinker i just couldnt read it with the text so small ... so for anyone else who is having troubles here it is...
Good post Clinker, I don't comment on them often, but I always enjoy reading your posts. Keep up the good work! Just to add a few points, the term shinplaster was used during the Hard Times era of the 1830s. I think the term originated at that time, but I am not positive of that. During the Civil War, coins were hoarded to such an extent, that even counting the coins sitting in banks there were about 8 coins per person in circulation (a quick check of my pocket revealed 21 coins). As far as spending stamps, at first they were carried and spent as were coins. As one can imagine, they did not hold up well, and often became stuck together. That was followed by placing the stamps in envelopes with the value written on the outside. It seems that it didn't take long for people to start being dishonest and transit companies soon found that people were using empty envelopes to pay for fares, and it was too cumbersome to open each envelope and count the loose stamps, and that practice became unacceptable. John Gault came up with the idea of encasing the postage stamps so that the value was easily seen while still being protected. The merchants' desperation to make change is evident in their willingness to pay the rather large premium to have postage stamps encased, especially the smaller denominations.
CWtokenman: Great to see your comment and a big THANKS for the extra info... Green18: Always good to read your comments (keep 'em coming!)... Clinker
Wait, shouldn't this be in the paper money forum??? just joking. Great thread for me to forward on to those who don't know. Short, concise, yet informative. Thanks.
Great stuff as always. Question: Does anyone have an example (with a pic?), and what would a fine example be worth of this. I'll bet quite a bit....
