Fractional Currency 1863

Recently, a friend showed me a piece of Fractional Currency that he found in his father's collection. This small object contains a wealth of information on US monetary history and the technology of money.

Briefly, why issue a note for 10 cents? This note was issued in late 1863, early in the US Civil War. Such notes were necessary because with the start of the war, gold and silver (used for small change) disappeared from circulation. So, people started using postage stamps for fractional amounts. This led to a shortage of postage stamps. Also, a lot of private businesses started issuing their own fractional money. To end both practices, Congress passed an act in March 1863, creating Fractional Currency and outlawing the use of stamps or private issues as money.

Notes like the one pictured were the first currency printed by the US Treasury. These notes were printed by hand in the attic of the Treasury building by the just established Bureau of Engraving and Printing. These notes are also unique because of technological advancements arising to create them. First, a special cutting machine was invented to separate the notes, there were probably 15 to 18 on a sheet. Second, the bronze circle around George Washington's face was a new anticounterfeiting device invented inside Treasury. This reflective metal dust placed on clear, wet ink prevented photographic reproduction of the note. In the era of black and white photography, bronzing would appear black in a photograph.

Also, look at the background vignette, showing the latest technology of steamships and trains. There's a lot packed into banknotes, even today.