**Civil War Coins**

## Silver Dollars

Silver dollars were minted from 1794 through 1803, and then were
abruptly halted. Except for a small number of restrikes made for
diplomatic missions and influential collectors, no further silver
dollars were struck until 1836 (Seated Liberty design). The Heraldic
Eagle reverse shown here is based on the Great Seal of the United
States, which can be seen on the back of any current U.S. \$1 bill.

### Money and Tokens of the Civil War (1861-1865)

![](media/image1.jpeg){width="1.3541666666666667in"
height="0.90625in"}The Civil War brought many changes in the money used
throughout the country. In the North and East, silver and gold coins
were hoarded, leading people to use tokens, stamps, encased postage, and
fractional currency. The federal government issued paper currency in the
form of demand notes and legal tender notes, as well as gold
certificates and some interest-bearing notes. A new national banking
system was established that issued national bank notes. In the West, new
gold discoveries led to issues of private gold coins, while in the
South, the Confederacy issued its own paper money.

## \$1 Legal Tender (1862)

In 1862 Congress began issuing legal tender notes, also called U.S.
notes, to finance the war. Legal tender notes, as their name implies,
could be used to pay all debts, public and private (except for customs
duties). They were also nicknamed greenbacks. America's first \$1 bill
featured an engraving of Salmon P. Chase, President Lincoln's Secretary
of the Treasury, who was responsible for the words "In God We Trust" on
U.S. coins. The \$10 legal tender note, however, featured Lincoln's
portrait, as did the \$10 demand note. This is the only time U.S.
currency honored a President during his term of office.

## \$5 Demand Note (1861)

Congress initially authorized demand notes in 1861 as an emergency
measure at the beginning of the Civil War. Not backed by silver or gold,
these notes were the first federal paper money since the continental
currency of the Revolutionary War. Demand notes came to be called
greenbacks. This nickname---still used today to refer to currency---came
from the green ink used to print the backs of these notes.

## Civil War Tokens

The hoarding of all types of U.S. coins caused merchants to issue their
own one-cent-size private tokens that circulated widely. Over 10,000
different kinds were issued, some with patriotic themes (known to
collectors as "patriotics") and the rest with advertisements (often
called "store tokens").

## Encased Postage

Because of the shortage of coins during the Civil War, people began
using postage stamps to make change. But with frequent use, the stamps
wore out quickly. They also stuck together when the humidity was high.
An inventor patented a round metal case with a clear mica window to make
it easier to use postage stamps as money. Merchants embossed their
advertisements on the backs of these metal cases.

## Fractional Currency

To provide an alternative to using postage stamps during the coin
shortage, the U.S. began to print fractional notes in small
denominations. The first issue followed the postage stamp theme by using
engravings of postage stamps to make currency in five-cent, 10-cent,
25-cent, and 50-cent denominations. Later issues used more traditional
currency designs.

## Confederate Currency

The only facility that could produce coins for the Confederacy was the
New Orleans branch of the U. S. Mint. When New Orleans was re-captured,
all hope of minting coins for the Confederacy died and only paper
currency could be issued. Over 72 major types of Confederate notes were
issued between 1861 and 1864, but all became worthless at the war's end.

## National Bank Notes

In 1863, Congress enacted the National Banking Act to standardize the
nation's currency. Banks were granted a national charter authorizing
them to issue notes labeled "National Currency" with their own name and
charter number. The notes were backed by government bonds on deposit
with the Treasury. A bank's charter lasted 20 years and was renewable.
Notes had varying designs, even within each charter period. The note
shown is from the original charter period (1863-1882).

## National Bank Notes

After 1877, all national bank notes were printed by the Bureau of
Engraving and Printing. Even so, designs for these notes varied,
particularly on their reverse sides. President William McKinley appears
on this note from the third charter period.

## National Gold Bank Notes

Because of the California gold rush and Westerners' preference for
conducting business transactions in gold, Congress in 1870 authorized
the creation of 10 National Gold Banks. These gold banks were granted
the right to issue currency redeemable in gold in denominations ranging
from \$5 to \$500.