Fractional currency (United States)

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Fifty-cent fractional currency depicting Francis E. Spinner, with autograph signature
Fifty-cent fractional currency depicting Francis E. Spinner, with autograph signature.

Fractional currency, also referred to as shinplasters, was introduced by the United States federal government following the outbreak of the Civil War. These fractional notes were in use between 21 August 1862 and 15 February 1876, and issued in 3, 5, 10, 15, 25, and 50 cent denominations across five issuing periods.[1][2][3] The complete type set below is part of the National Numismatic Collection, housed at the National Museum of American History, part of the Smithsonian Institution.[nb 1]

10-cent encased postage stamp designed by John Gault
Encased postage designed by John Gault.

The Civil War economy catalyzed a shortage of United States coinage[4]—gold and silver coins were hoarded given their intrinsic bullion value relative to irredeemable paper currency at the time.[5][6] In late 1861, to help finance the Civil War, the U.S. government borrowed gold coin from New York City banks in exchange for Seven-thirties treasury notes[7] and the New York banks sold them to the public for gold to repay the loan.[7] In December 1861, the Trent Affair shook public confidence with the threat of war on a second front. The United States Department of the Treasury suspended specie payments[8] and banks in New York City stopped redeeming paper money for gold and silver.[9] In the absence of gold and silver coin, the premium for specie began to devalue paper currency.[10] After the New York banks suspended specie payments (quickly followed by Boston and Philadelphia)[11] the premium on gold rose from 1–3% over paper in early January 1862 to 9% over paper in June 1862,[10] by which time one paper dollar was worth 91.69 cents in gold.[10] This fueled currency speculation (e.g., redeeming banknotes for silver coin which was then sold at a premium as bullion),[12] and created significant disruption across businesses and trade.[13] Alternate methods of providing small change included the reintroduction of Spanish quarter dollars in Philadelphia,[13] cutting dollar bills in quarters or halves,[14] refusing to provide change (without charging a premium for providing silver coins),[14] or the issuance of locally issued shinplasters (i.e., those issued by businesses or local municipalities) was forbidden by law in many states.[14]

Treasurer of the United States Francis E. Spinner has been credited with finding the solution to the shortage of coinage: he created postage currency (which led into the use of Fractional currency).[15] Postage (or postal) currency was the first of five issues of US Post Office fractional paper money printed in 5-cent, 10-cent, 25-cent, and 50-cent denominations and issued from 21 August 1862 through 27 May 1863.[16] Spinner proposed using postage stamps, affixed to Treasury paper,[17] with his signature on the bottom (see illustration below). Based on this initiative, Congress supported a temporary solution involving fractional currency and on 17 July 1862 President Lincoln signed the Postage Currency Bill into law.[3] The intent, however, was not that stamps should be a circulating currency.[18]

The design of the First Issue (postage currency) was directly based on Spinner’s original handmade examples. Some varieties even had perforated stamp-like edge. While not actually legal tender, postage currency could be exchanged for United States Notes in $5 lots[19] and were receivable in payment of all dues to the United States, up to $5.[nb 2] Subsequent issues would no longer include images of stamps and were referred to as Fractional Currency. Despite the July 1862 legislation, postage stamps remained a form of currency until postage currency gained momentum in the spring of 1863.[20] In 1863, Secretary Chase asked for a new fractional currency that was harder to counterfeit than the postage currency. The new fractional currency notes were different from the 1862 postage currency issues.[nb 3] They were more colorful with printing on the reverse, and several anti-counterfeiting measures were employed: experimental paper, adding surcharges, overprints, blue end paper, silk fibers, and watermarks to name a few. Fractional currency shields which had single sided specimens were sold to banks to provide a standard for comparison for detecting counterfeits.[21] Postage and fractional currency remained in use until 1876, when Congress authorized the minting of fractional silver coins to redeem the outstanding fractional currency.[15][22]

Issuing periods and varieties

U.S. Fractional Currency issuing periods
Issuing period Period dates Denominations issued Features/varieties[23]
1First Issue 1862-08-2121 Aug 1862
27 May 1863		 $0.05
$0.10
$0.25
$0.50		 Issued as postage currency with two main varieties: 1) edges (straight versus perforated), and 2) monogram (presence or absence of the American Bank Note Co. monogram (ABCo) on the reverse).[nb 4] All four denominations bear the stamp motif on the obverse.
2Second Issue 1863-10-0110 Oct 1863
23 Feb 1867		 $0.05
$0.10
$0.25
$0.50		 Introduction of numerous anti-counterfeiting measures: bronze oval (obverse), bronze ink surcharge (reverse), use of fiber paper.[nb 5]
3Third Issue 1864-12-055 Dec 1864
16 Aug 1869		 $0.03
$0.05
$0.10
$0.25
$0.50		 Sporadic use of surcharges, signatures introduced (except 3-cent) both printed (PS) and autographed (AS), design features (or position indicators) – either the letter "a", the number "1", or both, on the extreme left obverse.[25]
4Fourth Issue 1869-07-1414 Jul 1869
16 Feb 1875		 $0.10
$0.15
$0.25
$0.50		 Additional anti-counterfeiting measures: watermarked paper (“US”), embedding of large silk fibers, blue tinted end paper.[26]
5Fifth Issue 1874-02-2626 Feb 1874
15 Feb 1876		 $0.10
$0.25
$0.50		 Color tinting in paper, silk fibers.[27]
  • Inspiration, model, and proof for the First Issue (postage currency)
  • Spinner's initial signed design

    Spinner's initial signed design (photo)

  • Original model artwork

    Original model artwork

  • Working proof with pencil notations

    Working proof with pencil notations

Complete type set of United States fractional currency

List of United States fractional currency
Value Series Size[nb 6] Fr. No.[nb 7] Image Portrait Varieties[nb 8]
0.05$0.05 1862-08-21First Issue 2827.565 x 43.5 mm Fr.1231 Five-cent first-issue fractional note Jefferson1Thomas Jefferson 1228 – Perforated; monogram
1229 – Perforated; no monogram
1230 – Straight; monogram
1231 – Straight; no monogram
0.10$0.10 1862-08-21First Issue 2827.565 x 43.5 mm Fr.1240 Ten-cent first-issue fractional note Washington1George Washington 1240 – Perforated; monogram
1241 – Perforated; no monogram
1242 – Straight; monogram
1243 – Straight; no monogram
0.25$0.25 1862-08-21First Issue 2947.565.5 x 45 mm Fr.1280 Twenty five-cent first-issue fractional note Jefferson2Thomas Jefferson 1279 – Perforated; monogram
1280 – Perforated; no monogram
1281 – Straight; monogram
1282 – Straight; no monogram
0.50$0.50 1862-08-21First Issue 2947.565.5 x 45 mm Fr.1312 fifty-cent first-issue fractional note Washington2George Washington 1310 – Perforated; monogram
1311 – Perforated; no monogram
1311a – Same, except 14 versus 12 perf/20 mm
1312 – Straight; monogram
1314 – Straight; no monogram
0.05$0.05 1863-10-10Second Issue 3078.565.5 x 47 mm Fr.1232 Five-cent second-issue fractional note Washington3George Washington 1232 – No surcharge
1233 – Surcharge “18-63”
1234 – Surcharge “18-63” and “S”
1235 – Surcharge “18-63” and “R-1”; Fiber paper
0.10$0.10 1863-10-10Second Issue 3078.565.5 x 47 mm Fr.1246 Ten-cent second-issue fractional note Washington4George Washington 1244 – No surcharge
1245 – Surcharge “18-63”
1246 – Surcharge “18-63” and “S”
1247 – Surcharge “18-63” and “I”
1248 – Surcharge “0-63”
1249 – Surcharge “18-63” and “T-1”
0.25$0.25 1863-10-10Second Issue 3078.565.5 x 47 mm Fr.1284 Twenty five-cent second-issue fractional note Washington5George Washington 1283 – No surcharge.
1284 – Surcharge “18-63”
1285 – Surcharge “18-63” and “A”
1286 – Surcharge “18-63” and “S”
1287 – Unissued Friedberg number
1288 – Surcharge “18-63” and “2”
1289 – Surcharge “18-63” and “T-1”; fiber paper
1290 – Surcharge “18-63” and “T-2”; fiber paper
0.50$0.50 1863-10-10Second Issue 3078.565.5 x 47 mm Fr.1322 fifty-cent second-issue fractional note Washington6George Washington 1314 – No surcharge
1315 – Unissued Friedberg number
1316 – Surcharge “18-63”
1317 – Surcharge “18-63” and “A”
1318 – Surcharge “18-63” and “1”
1319 – Unissued Friedberg number
1320 – Surcharge “18-63” and “0-1”; fiber paper
1321 – Surcharge “18-63” and “R-2”; fiber paper
1322 – Surcharge “18-63” and “T-1”; fiber paper
0.03$0.03 1864-12-05Third Issue 267366 x 40.5 mm Fr.1226 Three-cent third-issue fractional note Washington7George Washington 1226 – Portrait light background
1227 – Portrait dark background
0.05$0.05 1864-12-05Third Issue 294464 x 46 mm Fr.1238 Five-cent third-issue fractional note ClarkSpencer Clark 1236 – Red reverse
1237 – Red reverse; design letter “a”
1238 – Green reverse
1239 – Green reverse; design letter “a”
0.10$0.10 1864-12-05Third Issue 380781 x 47 mm Fr.1254 Ten-cent third-issue fractional note Washington8George Washington <templatestyles src="Template:Hidden begin/styles.css"/>
1251 – 1254 Red reverse
1251 – Red reverse
1252 – Red reverse; design numeral “1”
1253 – Red reverse; (AS) Colby and Spinner
1254 – Red reverse; (AS) Jeffries and Spinner

<templatestyles src="Template:Hidden begin/styles.css"/>
1255 – 1256 Green reverse
1255 – Green reverse
1255a – Green reverse; (AS) Colby and Spinner
1256 – Green reverse; design numeral “1”
0.25$0.25 1864-12-05Third Issue 4488.595.5 x 47 mm Fr.1294 Twenty five-cent third-issue fractional note FessendenWilliam Fessenden <templatestyles src="Template:Hidden begin/styles.css"/>
1291 – 1293 Red reverse
1291 – Red reverse
1292 – Red reverse; design letter “a”
1293 – Friedberg number removed from use

<templatestyles src="Template:Hidden begin/styles.css"/>
1294 – 1300 Green reverse
1294 – Green reverse
1295 – Green reverse; design letter “a”
1296 – Green reverse; large design letter “a”
1297 – Green reverse; surcharge “M-2-6-5”; fiber paper
1298 – Green reverse; same as 1297; design letter “a”
1299 – Green reverse; surcharge “M-2-6-5”; obverse ornamental designs in sold bronze overprint; fiber paper
1300 – Green reverse; same as 1299; design letter “a”
0.50$0.50 1864-12-05Third Issue 5472114 x 48 mm Fr.1328 fifty-cent third-issue fractional note Spinner1Francis Spinner <templatestyles src="Template:Hidden begin/styles.css"/>
1324 – 1330 Red reverse; surcharge “A-2-6-5”

1324 – Red reverse; surcharge “A-2-6-5”; no design figures
1325 – Red reverse; surcharge “A-2-6-5”; design figures “1” and “a”
1326 – Red reverse; surcharge “A-2-6-5”; design figure “1”
1327 – Red reverse; surcharge “A-2-6-5”; design figure “a”
1328 – Red reverse; surcharge “A-2-6-5”; (AS) Colby and Spinner
1329 – Red reverse; surcharge “A-2-6-5”; (AS) Allison and Spinner
1330 – Red reverse; surcharge “A-2-6-5”; (AS) Allison and New

<templatestyles src="Template:Hidden begin/styles.css"/>
1331 – 1334 Green reverse; no surcharge

1331 – Green reverse; no surcharge; no design figures
1332 – Green reverse; no surcharge; design figures “1” and “a”
1333 – Green reverse; no surcharge; design figure “1”
1334 – Green reverse; no surcharge; design figure “a”

<templatestyles src="Template:Hidden begin/styles.css"/>
1335 – 1338 Green reverse; surcharge “A-2-6-5”

1335 – Green reverse; surcharge “A-2-6-5”; no design figures
1336 – Green reverse; surcharge “A-2-6-5”; design figures “1” and “a”
1337 – Green reverse; surcharge “A-2-6-5”; design figure “1”
1338 – Green reverse; surcharge “A-2-6-5”; design figure “a”
0.50$0.50 1864-12-05Third Issue 5472114 x 48 mm Fr.1339 fifty-cent third-issue fractional note Spinner2Francis Spinner 1339 – Green reverse; no surcharge or design figures
1340 – Green reverse; design figures “1” and “a”
1341 – Green reverse; design figure “1”
1342 – Green reverse; design figure “a”
0.50$0.50 1864-12-05Third Issue 5472114 x 48 mm Fr.1355 fifty-cent third-issue fractional note JusticeJustice holding scales <templatestyles src="Template:Hidden begin/styles.css"/>
1343 – 1346 Red reverse; no surcharge
1343 – Red reverse; no surcharge; no design figures
1344 – Red reverse; no surcharge; design figures “1” and “a”
1345 – Red reverse; no surcharge; design figure “1”
1346 – Red reverse; no surcharge; design figure “a”

<templatestyles src="Template:Hidden begin/styles.css"/>
1347 – 1350 Red reverse; surcharge “A-2-6-5”

1347 – Red reverse; surcharge “A-2-6-5”; no design figures
1348 – Red reverse; surcharge “A-2-6-5”; design figures “1” and “a”
1349 – Red reverse; surcharge “A-2-6-5”; design figure “1”
1350 – Red reverse; surcharge “A-2-6-5”; design figure “a”

<templatestyles src="Template:Hidden begin/styles.css"/>
1351 – 1354 Red reverse; surcharge “S-2-6-4”; (PS)

1351 – Red reverse; surcharge “S-2-6-4”; (PS); no design figures; fiber paper
1352 – Red reverse; surcharge “S-2-6-4”; (PS); design figures “1” and “a”; fiber paper In 2004, a Fr. 1352 (one of only three known), sold at public auction for $126,500.[30]
1353 – Red reverse; surcharge “S-2-6-4”; (PS); design figure “1”; fiber paper
1354 – Red reverse; surcharge “S-2-6-4”; (PS); design figure “a”; fiber paper

<templatestyles src="Template:Hidden begin/styles.css"/>
1355 – 1357 Red reverse; (AS) Colby and Spinner

1355 – Red reverse; (AS) Colby and Spinner; no surcharge or design figures
1356 – Red reverse; (AS) Colby and Spinner; surcharge “A-2-6-5”
1357 – Red reverse; (AS) Colby and Spinner; surcharge “A-2-6-4”; fiber paper

<templatestyles src="Template:Hidden begin/styles.css"/>
1358 – 1361 Green reverse; no surcharge

1358 – Green reverse; no surcharge; no design figures
1359 – Green reverse; no surcharge; design figures “1” and “a”
1360 – Green reverse; no surcharge; design figure “1”
1361 – Green reverse; no surcharge; design figure “a”

<templatestyles src="Template:Hidden begin/styles.css"/>
1362 – 1365 Green reverse; surcharge “A-2-6-5” (narrow)

1362 – Green reverse; surcharge “A-2-6-5” (narrow); no design figures
1363 – Green reverse; surcharge “A-2-6-5” (narrow); design figures “1” and “a”
1364 – Green reverse; surcharge “A-2-6-5” (narrow); design figure “1”
1365 – Green reverse; surcharge “A-2-6-5” (narrow); design figure “a”.
*narrow – spacing of the surcharge

<templatestyles src="Template:Hidden begin/styles.css"/>
1366 – 1369 Green reverse; surcharge “A-2-6-5” (wide)

1366 – Green reverse; surcharge “A-2-6-5” (wide); no design figures
1367 – Green reverse; surcharge “A-2-6-5” (wide); design figures “1” and “a”
1368 – Green reverse; surcharge “A-2-6-5” (wide); design figure “1”
1369 – Green reverse; surcharge “A-2-6-5” (wide); design figure “a”
*wide – spacing of the surcharge

<templatestyles src="Template:Hidden begin/styles.css"/>
1370 – 1373a Green reverse; surcharge “A-2-6-5”; fiber paper

1370 – Green reverse; surcharge “A-2-6-5”; fiber paper; no design figures
1371 – Green reverse; surcharge “A-2-6-5”; fiber paper; design figures “1” and “a”
1372 – Green reverse; surcharge “A-2-6-5”; fiber paper; design figure “1”
1373 – Green reverse; surcharge “A-2-6-5”; fiber paper; design figure “a”
1373a – Green reverse; surcharge “A-2-6-4”; fiber paper; (PS); no design figure
0.10$0.10 1869-07-14Fourth Issue 363479 x 46 mm Fr.1259 Ten-cent fourth-issue fractional note LibertyBust of Liberty 1257 – Large red seal; watermarked; silk fibers (pink)
1258 – Large red seal; silk fibers (pink)
1259 – Large red seal; silk fibers (violet); blue end paper
1260 – Does not exist
1261 – Smaller red seal; silk fibers (violet); blue end paper
0.15$0.15 1869-07-14Fourth Issue 409489 x 46 mm Fr.1269 Fifteen-cent fourth-issue fractional note ColumbiaBust of Columbia 1267 – Large red seal; watermarked; silk fibers (pink)
1268 – Large red seal; silk fibers (pink)
1269 – Large red seal; silk fibers (violet); blue end paper
1270 – Does not exist
1271 – Smaller red seal; silk fibers (violet); blue end paper
0.25$0.25 1869-07-14Fourth Issue 443996.5 x 46 mm Fr.1303 Twenty five-cent fourth-issue fractional note Washington9George Washington 1301 – Large red seal; watermarked; silk fibers (pink)
1302 – Large red seal; silk fibers (pink)
1303 – Large red seal; silk fibers (violet); blue end paper
1307 – Smaller red seal; silk fibers (violet); blue end paper[nb 9]
0.50$0.50 1869-07-14Fourth Issue 4982106 x 47 mm Fr.1374 fifty-cent fourth-issue fractional note LincolnAbraham Lincoln 1374 – Large seal; watermarked; silk fibers (pink)
1375 – Delisted Friedberg number
0.50$0.50 1869-07-14Fourth Issue 4738103 x 46 mm Fr.1376 fifty-cent fourth-issue fractional note StantonEdwin Stanton 1376 – Small red seal; silk fibers (violet); blue end paper
0.50$0.50 1869-07-14Fourth Issue 494095 x 52 mm Fr.1379 fifty-cent fourth-issue fractional note DexterSamuel Dexter 1379 - Green seal; silk fibers (light violet); blue end paper
0.10$0.10 1874-02-26Fifth Issue 413181 x 51 mm Fr.1265 Ten-cent fifth-issue fractional note MeredithWilliam Meredith 1264 – Green seal
1265 – Red seal; long, thin key (in Treasury seal)
1266 – Red seal; short, thick key (in Treasury seal)
0.25$0.25 1874-02-26Fifth Issue 4557.7588.5 x 51.5 mm Fr.1308 Twenty five-cent fifth-issue fractional note WalkerRobert Walker 1308 – Long, thin key (in Treasury seal)
1309 – Short, thick key (in Treasury seal)
0.50$0.50 1874-02-26Fifth Issue 5858.25109.5 x 53.5 mm Fr.1381 fifty-cent fifth-issue fractional note CrawfordWilliam Crawford 1380 – Red seal; light pink paper on obvserse; silk fibers
1381 – Red seal; blue end paper; silk fibers

“…no portrait or likeness of any living person…”

File:US-Fractional (3rd Issue)-$0.15-Fr.1274-SP.jpg
Sherman-Grant 15-cent 3rd issue exists only as an unissued specimen.

Three people were depicted on fractional currency during their lifetime: Francis E. Spinner (Treasurer of the United States), William P. Fessenden (U.S. Senator and Secretary of the Treasury), and Spencer M. Clark (Superintendent of the National Currency Bureau).[32] Both Spinner and Clark decided to have their portrait depicted on currency, which created controversy.[33] Republican Representative Martin R. Thayer of Pennsylvania was an outspoken critic, suggesting that the Treasury’s privilege of portrait selection for currency[34] was being abused.[nb 10] On 7 April 1866, led by Thayer,[36] Congress enacted legislation specifically stating "that no portrait or likeness of any living person hereafter engraved, shall be placed upon any of the bonds, securities, notes, fractional or postal currency of the United States."[37] On the date of passage, the plates for the 15-cent note depicting William Tecumseh Sherman and Ulysses S. Grant had not been completed and thus fell under the scope of the new law.[38] The Sherman-Grant notes exist only as specimens.[39]

See also

References

Notes

  1. ↑ All images are courtesy of the Smithsonian Institution.
  2. ↑ The payment obligation printed on first issue notes states they are "Exchangeable for United States Notes by any Assistant Treasurer or designated U.S. Depositary in sums not less than five dollars. Receivable in payments of all dues to the U. States less than five dollars."[1]
  3. ↑ The payment obligation for the second issue was slightly different: "Exchangeable for United States Notes by the Assistant Treasurer and designated depositories of the U.S. in sums not less than three dollars. Receivable in payment of all dues to the United States less than five dollars except customs."[1]
  4. ↑ The reverse of the first issue was originally printed by the National Bank Note Company. As a security precaution, the Treasury moved the printing contract to the American Bank Note Company who added their monogram ABC to the reverse of the remaining first issue notes.[1]
  5. ↑ Also known as membrane paper; two sheets of paper bonded together with fibers embedded.[24]
  6. ↑ Sort by size is based on the surface area of the note in millimeters-squared. Margins and cut may affect the listed dimensions, but generally not more than +/- 2 mm
  7. ↑ "Fr" numbers refer to the numbering system in the widely used Friedberg reference book. Fr. numbers indicate varieties existing within a larger type design.[28]
  8. ↑ Varieties are taken from the standard paper money reference by Arthur and Ira Friedberg,[23] with additional descriptions in the Kravitz collector's guide[29]
  9. ↑ Fr.1304, 1305, and 1306 are unassigned.[31]
  10. ↑ "But now we see upon our current paper money not only the heads of the illustrious men of our country long since gathered to their fathers, but of living secretaries of the Treasury, and even of such subordinate officers as the superintendent of the Currency Printing Bureau, Mr. S.M. Clark."[35]

References

  1. ↑ 1.0 1.1 1.2 1.3 Friedberg & Friedberg, p. 174.
  2. ↑ Cuhaj, p. 401.
  3. ↑ 3.0 3.1 Kravitz
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Anderson, p. 303.
  6. ↑ Reed, p. 298.
  7. ↑ 7.0 7.1 Mitchell, 1903, pp. 27–32.
  8. ↑ Mitchell, 1902, p. 537.
  9. ↑ Mitchell, 1903, pp. 37–38.
  10. ↑ 10.0 10.1 10.2 Mitchell, 1902, p. 552.
  11. ↑ Mitchell, 1903, p. 41.
  12. ↑ Mitchell, 1902, p. 540.
  13. ↑ 13.0 13.1 Mitchell, 1902, p. 553.
  14. ↑ 14.0 14.1 14.2 Mitchell, 1902, p. 554.
  15. ↑ 15.0 15.1 Blake, p. 32.
  16. ↑ Knox, p. 104.
  17. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Knox, p. 103.
  20. ↑ Reed, p. 302.
  21. ↑ Friedberg & Friedberg, p. 182.
  22. ↑ Knox, pp. 104 and 109.
  23. ↑ 23.0 23.1 Friedberg & Friedberg, pp. 174–81.
  24. ↑ Kravitz, p. 32.
  25. ↑ Kravitz, pp. 34–39.
  26. ↑ Kravitz, pp. 40–41.
  27. ↑ Kravitz, p. 41.
  28. ↑ Friedberg & Friedberg
  29. ↑ Kravitz, pp. 30–41.
  30. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  31. ↑ Friedberg & Friedberg, p. 178.
  32. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  33. ↑ Cuhaj, p. 407.
  34. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  35. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  36. ↑ Rothbard, p. 126.
  37. ↑ National Monetary Commission, p. 191.
  38. ↑ Kravitz, p. 67.
  39. ↑ Friedberg & Friedberg, p. 183.

Books and journals

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Additional reading

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