Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1890-11-14
THE POSTAGE CURRENCY.
How It Came into Use During the
Early Days of the War

The suspension Of specie payment by
the banks in December 1861, caused
disappearance Of the gold and silver
coins from circulation with marvellous
celebrity. They seemed to vanish IN
day: probably into the private boards OF
the people. since the specie Of the banks
failed to show any considerable increase.
War existed. no one could predict the
future. the thrift and caution Of the peo'
pie led them to lay something aside
which would not lose its purchasing
power. They fastened to lay hold oil
these coins, and secrete them where they
could be found when other means oil sub
S.stence failed.
The scarcity Of these coins produced
great inconvenience in business. 1t be-
came almost impossible to make change
in the ordinary purchases from dealers
and merchants. ShinplasteIs began 10
make their appearance to supply the de
fcicncv. In the Southern States these
were not only issued by private individ-
uqls and private corporations. but by
States. counties, cities, towns and all
other municipal corporations. A collec-
ton of these Confederate shinplasters
upon all kinds Of paper, from White
writing to brown wrapping, would now
be an interesting memento of the war,
but in a pecuniary sense absolutely
worthless.
The credit Of deyising lawful and
adequate remedy for this Inconvenience
belongs to General Francis E. Spinner.
Treasurer of the United States. He found
il impossible to facilitate rs he desired to
do the payment Of the soldiers and sail
ors. and 10 conduct the business Of the
Treasury with the small coins at his
command He therefore arranged with
the Post Office Department to redeem IN
unused stamps such poStage-stamps as
mleht be used for currency. IN short
time his department manufactured and
introduced new issue. All the demon
nations were of uniform size. \ piece
Of paper with one stamp pasted on It wa!
five cents: one with two stamps, tel
cents: five stamps, twenty-five cents; and
ten stamps, fifty cents. In this way, az
the cost Of little labor, a considerable
amount OF small change was manuiac-
turcl. This currency became popular
that, instead Of using stamps, plates we're
engraved for each denomination, IN lml-
tation of the manufactured notes, the
impressions from which had the same
LEGAL qualities and were used for the
same purposes. These impressions were
called the postage curre-cy." They
were afterwards authorized by the Act Of
July l.. 1862, which directed
the Secretary to furnish to the
Assistant Treasures 1.-THE postage
and other stamps OF the United States to
be exchanged by them on application Tor
United States notes. These stamps were
receivable in payment of all dues to the
United States of less than five dollars,
and could be exchanged for United States
notes when presented in sums OF not less
than five dollars. The same act put an
end to the further issue OF shinplasters by
making the issue or circulation by private
persons or corporations OF notes or tokens
for less than one dollar punishable -
fine and imprisonment.
The convenience of the postage cur
rency was great, and the amount called
for increased to an extent which became
troublesome to the Po,t-oilice Depart
ment. and the Secretary decided to take
it into the Treasury, where it legitimateiy
belonged. Accordingly an act was passed
which suspended its further issue, and
substituted IN its place currency OF
onotbor deecr;ption. -fIIarper's Maya
zinc.