1862 - 1863 PCGS MS62 PPQ Fr. 1228 5¢ First Issue Fractional Currency 5 Cents USA
Item History & Price
Fr. 1228 5¢ First Issue PCGS New 62PPQ.
This is a lovely example of this first issue note with perforated edges and the ABNCo monogram on the back.
Fractional Currency Notes are the most unusual of all U.S. currency notes ever printed. During and after the Civil War, people hoarded coins for their Precious Metal c...ontent. A serious shortage of all denominations of coins developed. Since a way to make change was desperately needed in commerce, a remedy to this situation was found when the government printed various small denomination notes. These Fractional Notes were not well received by the general public at the time, but are highly collectible today! Fractional currency notes were active U.S. Notes for several years after the last issues were created.US Treasurer Francis 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). 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. Spinner proposed using postage stamps, affixed to Treasury Paper, 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. The intent, however, was not that stamps should be a circulating currency.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 and were receivable in payment of all dues to the United States, up to $5. 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.
This is a lovely example of this first issue note with perforated edges and the ABNCo monogram on the back.
Fractional Currency Notes are the most unusual of all U.S. currency notes ever printed. During and after the Civil War, people hoarded coins for their Precious Metal c...ontent. A serious shortage of all denominations of coins developed. Since a way to make change was desperately needed in commerce, a remedy to this situation was found when the government printed various small denomination notes. These Fractional Notes were not well received by the general public at the time, but are highly collectible today! Fractional currency notes were active U.S. Notes for several years after the last issues were created.US Treasurer Francis 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). 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. Spinner proposed using postage stamps, affixed to Treasury Paper, 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. The intent, however, was not that stamps should be a circulating currency.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 and were receivable in payment of all dues to the United States, up to $5. 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.
