When Lincoln Had His Own Banknotes

When the US starting issuing its own banknotes shortly after the start of the Civil War, there were no rules about who could appear on them. So, sitting President Abraham Lincoln could hold notes bearing his portrait. (See the pictured Demand Note, Series 1861.)

Not surprisingly, other politicians and notables wanted to get in on the act. But, then Secretary of the Treasury Salmon P. Chase kept a grip on who would appear on notes. Mostly, the portraits of Founding Fathers appeared and some Civil War military figures (who did not have political ambitions). However, Chase did allow himself to be portrayed on the $2 bill. After all, he wanted to be President in 1864.

By 1866, Congress was fed up with this situation and passed a law forbidding living people from appearing on US banknotes.

By the way, the same rules applied to Treasury securities. Lincoln, who was a savvy investor, owned many bonds bearing his image.