Gilpin observer., 1912-05-30
FRAUD IN OLD BILLS
Confederate Money Still Used to
SwindIe Immigrants.
First Issue Of Currency In South
Problems That Confronted the
Treasury Of the confederaey
During tho War.

Observation-Disclosures money is still
a favorite medium Of the confidence
man in his dealings with the raw i'm.
migrant, though 1t Is hardly a cur.
rency to deceive any man acquainted
with the country's history or even
with the negotiable paper money of to.
day. 1t is not surprising that confed.
crate money Is 80 plentiful after q
half century as to make 1t more
valuable to the confidence man than
to the collector when one realizes the
immense amount turned out by the
Industrious presses of the Confed.
eracy.
The Confederate treasury kept on
printing paper money almost up to the
fall Of Richmond. A note dated Rich.
mond, February II, 1864, declares
upon its face: THE Confederate
States Of America will pay $40 to bear.
er two years after the ratification OF
a treaty of peace between the Confed.
crate States and the United States of
America" When the Confederate
treasury began business there was
clear enough perception among the
public men OF the Confederacy that
cheap money would be one of their
governments perils. They had been
brought up in the old democratic
monetary theory Of a currency com.
posed Of gold and silver at a fixed
ratio intended to correspond with
their relative bullion value, and paper
money based upon such currency.
Almost exactly fifty years ago the is.
sue of $1,000.000 in interest-bearing
notes was authorized. This was the
earliest Confederate paper money is.
sued. By July Of that year the treas.
ury had exceeded the authorized
amount, and the issue Of double the
original issue was then sanctioned by
law. The smallest denomination of
these early issues was $50, for the
treasury hoped that means might be
found for using silver and gold in.
minor transactions. Before the end of
the year the authorized issue had
again been exceeded, and in spite of
oft renewed good resolutions the Con-
federacy by July. 1863. had 81 1,OOO, ,0OO,-
600 Of notes outstanding. For few
months devoted Confederate patriots
permitted their gold deposits to get
into general circulation, but soon
everybody who had gold boarded 1t or
sent 1t out Of the country to a place
Of safety.
Almost at the very end of the Con-
federacy Jefferson Davis vetoed a bill
for the issue Of $S0,000.00O in paper
and congress passed the measure over
his veto. The funding plans resulted
in temporary contraction of the cur
rency and fall in prices, with the
consequent enrichment Of some Of the
desperate gamblers that hung about
Richmond and fattened upon the hard.
ships OF the Confederacy. After each
contraction Of the currency the con.
venient presses were set going again,
and instead Of circulating medium
of $175,000,000 as the treasury once
planned, Of OF 100000, 900 as 1t
planned at another time, the outstand-
Ing paper money swelled and swelled
until 1t had exceeded the 81 900 ,O0O,.
600 Of midsummer. 1863.
The banks Of Virginia tried to pro-
tect themselves and the treasury by
refusing to receive the deprecated
currency, but in vain. When soldiers
In the trenches Of Petersburg were
paying $40 for tin plate from which
to eat their frugal meals. and $500 or
$500 for a pair Of boots, the people
We're still clamoring for larger issues
OF paper.
You may still buy crisp. fresh look.
Ing Confederate notes at prices vary
Ing from two cents to two dollars per
hundred notes.