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Message:: [QUOTE="johnmilton, post: 4570157, member: 101855"]During times of stress, and sometimes during of poor management, nations have resorted to issuing fiat paper money to pay their bills. Modern economic theory now says that this system can work if it is done on moderation. Money does not have to be backed by gold or silver to hold its value. The trick is to keep the amount of money in circulation (called the money supply) in proportion to the size and grownth of the nation’s economy.       By 1863, The Confederate States of American had been issuing large quantities of fait currency for two years. The Confederate Secretary of the Treasury, Christopher Memminger, knew that he had to get a handle on the amount of money that was in circulation. Inflation was already out of the control, and issuing more currency would only make it worse. His plan was to date stamp the notes.       The Confederate Government approved the issuance of $50 million per month in notes in denominations from $5 to $100 on March 23, 1863. In addition, they authorized another $15 million in 50 cent, one dollar and two dollar notes. The designs were to be same as they had been in late 1862. The $5 through $100 notes were printed on white paper. The 50 cent to $2 notes were printed on pink paper. It was thought that the pink paper would discourage counterfeits, but inflation had left the low denomination notes with so little value that it was hardly worth the counterfeiters’ while to copy them.       Treasury Secretary Memminger came up with the idea to date stamping all of the $5 through $100 notes with the month they were issued. Within a year, the holders of these notes could convert them into 6% Confederate bonds, or watch them become worthless. This provided a rather ingenious way to get some excess money out of circulation. All of the $5 through $100 notes still made the promise that they would be redeemed “two years after the ratification of a treaty of peace between The Confederate States and The United States.” Since no such treaty as ever been completed, nor will it ever be, this promise has been kept in a way.       At any rate here are photos of the 1863 notes in this message and the next one. The Fifty Cent Note This small note a profile portrait of Jefferson Davis. It was printed by the Archer & Daly Company that was in Richmond Virginia. The number issued was 1,831,517, and it is a common note. The serial number was added with a numbering machine. [ATTACH=full]1131559[/ATTACH] The $1 Note These notes did not have a back because it was not considered to be worth the effort to print a back on them. These small notes saw a lot of use so EF, AU and Uncirculated notes are a bit scarce. The circulated notes are common. 1,615,600 were issued. The vignette is of Clement C. Clay, who was a Confederate senator from Alabama. [ATTACH=full]1131560[/ATTACH] The $2 Note Like the 50 cent and $1 notes, the $2 note is scarce in high grade. I have found that locating nice the Confederate $2 notes is challenging. In addition to the fact that they were well used, the folks who cut the sheets of currency were not inclined to do a great job. Think about what it's like though several pieces of paper at a time time with a pair sissors. If the paper moves, you don't get a great cut. Finding pieces with full borders is a challenge. The vignette is of Judah P. Benjamin. He was on the only high ranking Jewish person on the Confederate cabinet. During the war he served as the secretaries of state and war as well as the attorney general. After the war he fled to England where he became a major and much admired figure in the British judiciary. [ATTACH=full]1131562[/ATTACH] The $5 Note This was the lowest denomination note to have a back on it. The idea was to make life harder for the counterfeiters although it did not totally discourage them. Note that this note has a September 1863 date stamp in red on the right. The vignette is of Secretary of the Treasury Memminger. He was a German immigrate. Soon after his arrival in The United States, his last remaining parent, his mother, died living him an orphan. Memminger took the lead before in after the war in establishing schools in Charlestown, South Carolina. After the war he established a school that educated orphaned children of all races. [ATTACH=full]1131566[/ATTACH] [ATTACH=full]1131567[/ATTACH] The $10 Note This note featured the proposed capital of South Carolina. The vignette is of R. M. T. Hunter who was briefly the secretary of state and a Confederate senator. [ATTACH=full]1131577[/ATTACH] [ATTACH=full]1131579[/ATTACH] The $20 Note This note features a photo of the State Capital in Nashville, Tennessee. The vignette is of Alexander Stephens who was the vice president of the Confederacy. Stephens was a small, sickly looking man who was noted for his great intelligence. The term "Smart Alec" was inspired by him. Before the war, he was friends with Abraham Lincoln when they were in Congress. After the war, Stephens was a member of the U.S. Congress and a Governor of Georgia. [ATTACH=full]1131584[/ATTACH] [ATTACH=full]1131585[/ATTACH] Next Message!!![/QUOTE]

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