Paper Money

Immediately after specie payments were suspended in the early part of 1862, when gold and silver coins disappeared from circulation, the place of subsidiary silver coins was for a time supplied by tickets, due bills and other forms of private obligations, which were issued by merchants and corporations. Congress soon authorized the use of postage stamps for change and then a modified form of postage stamps called postage currency and finally fractional currency in denominations corresponding to the subsidiary silver coins. There is over $15,000,000 worth of this fractional currency still outstanding, about half of which is officially estimated to have been destroyed.

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