From the time of its birth in Montgomery, Alabama until its death at Appomattox Court House, Virginia, The Confederate States of America ran on fiat currency. The central government held a large cash of gold in its treasury, but that hard money was reserved to make deals with foreign governments and occasionally pay spies and other key employees. It did not back any of the paper money the Confederate Government issued from March 1861 until the end of 1864. That currency was backed by Confederate bonds and promises to redeem the notes six months to two years after a peace treaty had been signed with the North which, of course, never came to pass. The first four varieties of Confederate currency were actually inter bearing bonds. They were issued in the $1,000, $500, $100 and $50 denominations. Today all four of these notes and very scarce and priced beyond the means of most collectors. The American Bank Note Company in New York City printed them. Above: a $1,000 note, variety T-1. Photo courtesy Heritage Auctions. The first Confederate currency was a series of notes in the $50, $100, $500 and $1,000 denominations. Those notes were actually bonds, which paid interest. The National Banknote Company, located in New York City, printed those notes, which were beautifully executed. Not surprisingly, the Union Government took a dim view of that transaction between a northern printer and the Rebel Government after the first shots were fired at Fort Sumter. When the Confederate capital moved to Richmond, Virginia in the spring of 1861, the National Bank Note Company renamed its southern branch, located in New Orleans, Louisiana, the Southern Banknote Company. That concern printed the next group of notes which were also beautifully produced. The Southern Bank Note Company pieces were beautifully printed, but the firm did not have the capacity to print all of the notes that the Confederacy needed. This $100 note is classified as T-5. These notes are pricey, but more affordable than the first four varieties. The Southern Banknote Company did not have the capacity to supply all of the Confederate Government’s currency needs. That forced the Rebels to reach out to other suppliers. During its four year history, the Confederacy issued 70 types of notes that modern collectors recognize. The Confederacy authorized 37 of those types in 1861, which were printed by six different companies or individuals. The quality ranged from high end notes from the National and Southern Banknote Companies to currency that was only a few steps ahead of newsprint in terms of design and the quality of the paper. To be fair, quality paper was sometimes in short supply because of the Union blockade which was gradually choking the southern economy. This note, which was made by New Orleans printer, Jules Manouvrier, had a back, which was unique for the 1861 Confederate notes, but its design was too plain according to government officials. It didn't help when someone broke into the shipping packages that housed the $10 Manouvrier notes. All of them had to be destroyed. If you ever locate a genuine $10 Manouvrier note, your ship has come in. Blanton Duncan supplied this less than wonderful note, which assigned the number T-20. We will learn more about Mr. Duncan later. Southern bankers warned the government that the many designs and variances in the quality of the currency it was issuing was an open invitation to counterfeiters. In 1861 the Confederacy issued six types of $20 bills, ten types of $10 bills and eight types of $5 bills. Sure enough, bogus notes began to appear in circulation. At the end of year, the southern government began taking steps to shore-up its monetary system. In 1862 the number of types fell to 16 which were produced by three companies. At the end of the year, standardized designs for each denomination became the norm. The currency chaos of 1861 had come to an end. As a transition year, the 1862 Confederate notes comprise an interesting collection. Although a few of the notes command moderately high collector prices, a type set of the 1862 Confederate notes is within the reach of many dedicated collectors. Blanton Duncan, A Civil War Scoundrel, Now a Colorful Historical Figure Blanton Duncan (1827 – 1902) was a wealthy Louisville, Kentucky lawyer who seldom, if ever practiced his trade. At the beginning of the Civil War, he funded and organized the First Kentucky Confederate Regiment and made himself a lieutenant colonel. He fought at the First Battle of Bull Run (a.k.a First Manassas). He helped the Rebel treasury obtain paper late in 1861 and supplied currency to Confederacy that same year. Blanton Duncan printed the wrong date on this $2 note, which is listed as T-38. His firm printed the first 1862 note, the initial Confederate two dollar bill, with an error. Instead of labeling the note as part of third series, authorized on June 2, 1862, he attributed it to the first series from September 2, 1861. The error note, attributed by collectors as “Type” or T-38 was replaced by a corrected version, T-42. Approximately 36,000 T-38 notes were issued, and it is a scarce item, especially in attractive condition. T-42 is much more common with a printing of slightly over 1.5 million pieces. Both notes feature a portrait of Judah Benjamin who was the only Jewish person who served in high positions in the Confederate Government. The center of the note features an allegorical scene with a lady welding a sword, representative of the South, striking down another lady, who represents the North. T-42 Duncan also made the first Confederate one dollar bill. That pieces features a side wheeling steam ship with sails and another sailing ship in the background. Many collectors believe that this ship is a blockade runner. A portrait of Lucy Pickens, who was wife of the South Carolina governor, is at the lower right and a lady liberty with a shield is to the left. Like most one and two dollar Confederate notes, these pieces tend to be scarce in high grade because the low denominations saw a lot of circulation. T-43 Duncan made two additional varieties of these notes by adding a green underprint to the designs. The dollar had a large “1” to the left and “ONE” below the ship. The two dollar note had a large “2” and “TWO” added to its design. Duncan claimed that he did this “to keep his men busy,” but the real purpose was to try to charge the government more for his work. The government officials refused, and Duncan dropped the idea. Duncan was not above using deception to get ahead of his rivals. At one point he took over a competitor’s printing office on the pretext that he had the authority to do so from the army and the government. He didn’t. On another occasion he was caught in the act stealing paper from another printer. Duncan’s printing contract with the government ran out in April 1863. After refusing to accept another contract at lower prices, he published two open letters that were critical of treasury secretary Memminger. He became persona non grata to the entire Confederate Government leadership, left the printing business and returned to the army. Interest Bearing Notes Three $100 notes, Type numbers 39, 40 and 41 paid interest to their bearers. Each of them yielded two cents per day interest which was paid annually. These notes were stamped on the back with the month (January), year and location each time the dividend was paid which adds an interesting twist to these unusual pieces. Military officers issued some of these notes in the field. Confederate citizens were required to take these notes as payment for goods the army needed. They bear the officer’s hand written signature, date and rank. A few notes include the location where they were issued and the military unit in which the officer served. All of these notes carry significant premiums above their usual catalog listings. Types 39 and 40 feature a steam engine vignette. Type 41 features a scene with slaves hoeing in the center, a portrait of legendary southern senator, John C. Calhoun to the left and an allegorical figure of Columbia to the right. All three notes promised redemption six months after a treaty was signed between the Confederacy and The United States of America. This T-39 note appears to have been issued by a Confederate officer named Goodwin on August 26, 1862. Two intereat paid date stamps appear below his signature. To be continued.
The Printer Who Refused to Move South and Another Misdated Note, Hoyer & Ludwig was the first truly southern printer to receive a contract from the Confederate Government. After the Southern Banknote Company was unable to fill all of the government’s money printing needs, Hoyer & Ludwig got the contract to print Types 7 through 11 in 1861 as well as some later issues. Louis Hoyer, a wealthy jeweler and real estate speculator, put up the money of the firm. Charles Ludwig, a Swedish immigrant, who claimed to be the illegitimate son of King Oscar I of Sweden, was the lithographer. Since king paid for his education and his passage to America, it would appear that stories of Ludwig’s paternity were true. Hoyer & Ludwig would continue to print southern notes until 1864, but their output was limited to one and two dollar bills in 1863 and ‘64. In the later years they used plates that were engraved by Keatinge & Ball. In early 1862, President Jefferson Davis asked the note printers to move their operations from Richmond, Virginia because of threats to the Rebel capital from the Union Army. Most of the printers relocated to Columbia, South Carolina, but Hoyer & Ludwig refused to move. They sold their printing rights to James Paterson in May 1862 who moved his operation to Columbia. T-46 The last larger bill that Hoyer & Ludwig printed was Type 46. It was a $10 bill which featured of image of Ceres, the goddess of agriculture. Paterson printed more of these notes after his move to Columbia. A portrait of H.M.T. Hunter, who was briefly the Confederate secretary of state, appears in the lower left corner of the note. The note was of mediocre quality. It is dated “September 2, 1862” which is incorrect. The note was actually authorized in August of 1861. Unlike the Duncan two dollar bill noted earlier, this mistake was not corrected. Standard Designs and Backs Finally Come to Confederate Currency Treasury secretary, Christopher Memminger, hired Thomas Ball to set up an engraving company that would produce southern currency in August 1861. Ball was a lawyer who used his skills to take care of the office work and provide the firm with some of its capital. He was also handy with a double-barreled shotgun when other printers threatened his business. The original name of the firm was Leggett, Keatinge & Ball. Leggett and Keatinge were former employees of the American Banknote Company. Secretary Memminger forced Leggett out of the company when it was alleged that he was associating with a Union spy. Leggett joined forces with Blanton Duncan and another engraver and Memminger critic, Frederick Halpin. Halpin had played a part of Blanton Duncan’s phony plot to seize the property of other printers “on behalf of the army and the government.” Keatinge & Ball, printed and engraved plates from most of the Confederate currency from the end of 1862 until 1864 when the issuance of southern currency ceased. In late 1862 Keatinge & Ball introduced the standard designs that would appear on Confederate currency for the rest of its run. The 1862 notes have been assigned the Type numbers 49 to 55 which cover the denominations from $100 to $1. The colors and the types of paper used would change, but the basic design elements would remain the same for the remainder of the Confederate currency series. Previously only one of the 48 design types that the Confederacy used on its currency included printing on the back. Starting with T-49, all of the denominations from the $5 bill to the $100 note had a reverse design. It usually included repeated numeric indications of the value of the piece and fine line detail in intricate patterns. The intent was to add another barrier for counterfeiters. The $1 and $2 bills did not have a back design. It was not considered cost effective to provide that extra bit of protection for the low value notes. Here are the Confederate notes from T-49 to T-55 T-49 $100 note T-50, $50 Note T-51. $20 Note T-52, $10 Note To be continued
T-53, $5 Note T-54, $2 Note, one sided T-55, $1 Note, one sided 1863 and 1864 For final two years, Keatinge & Ball would take the lead in producing Confederate currency. They would produce all of the notes from $5 bill to $100 note in 1863 and would add the $500 note in 1864. Keatinge & Ball engraved the plates for the $1 and $2 notes for Hoyer & Ludwig which would continue to print those notes in Richmond. Archer & Daly produced 50 cent notes in Richmond in 1863 and continued production of that denomination in 1864 under the name of Archer & Halpin. By then, inflation was so bad that the 50 cent notes were worth almost nothing. Although counterfeiting would continue to be a major concern, the even greater threat was inflation. The scarcity of almost every product and service during the last two years of the Confederacy and the almost constant increase in the money supply (amount of money in circulation), eroded the value of the Confederate dollar. At the beginning of the war in 1861, the Confederate dollar traded at 95 cents on the dollar in terms of gold. Two years later it had dipped to lass than 20 cents. When Lee surrendered at Appomattox Court House, it was down to 2 cents on the dollar. The last reported trade value was 0.1 of a cent to the dollar. In recent years Confederate notes have become a popular collectors’ items. Prices for the rarest and most popular notes have reached 5 figures. That is certainly a radical change from the perception years ago that all Confederate currency was worthless!
Interesting @johnmilton. Personally, I’ve never been a big fan of the notes but many are. I only own one, and the only reason I bought it was because it came with an autograph from Virginia native RMT Hunter, pictured on the note.
