The Confederate States dollar was first issued just before the outbreak of the
American Civil War
The American Civil War (April 12, 1861May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States between the Union (American Civil War), Union ("the North") and the Confederate States of A ...
by the newly formed
Confederacy. It was not backed by hard assets, but simply by a promise to pay the bearer after the war, on the prospect of Southern victory and independence. As the Civil War progressed and victory for the South seemed less and less likely, its value declined. After the Confederacy's defeat, its money had no value, and individuals and banks lost large sums.
The first series of Confederate paper money, issued in March 1861, bore interest and had a total circulation of . As the war began to turn against the Confederates, confidence in the currency diminished, and the government inflated the currency by continuing to print unbacked banknotes. By the end of 1863, the Confederate dollar (or "Greyback", to distinguish it from the then-new "
Greenback" paper U.S. dollar, which was likewise put into circulation during the war) was quoted at just six cents in gold, and fell further still.
The Greyback is now a prized collector's item, in its many versions, including those issued by individual states and local banks. The various engravings of leading Confederates, gods and goddesses, trains, ships, and slaves on these hastily printed
banknote
A banknote or bank notealso called a bill (North American English) or simply a noteis a type of paper money that is made and distributed ("issued") by a bank of issue, payable to the bearer on demand. Banknotes were originally issued by commerc ...
s, sometimes cut with scissors and signed by clerks, continue to stimulate debate among antique dealers, with even some of the
counterfeit notes commanding high prices.
Background
The Confederate dollar, often called a "Greyback", was first issued into circulation in April 1861, when the Confederacy was only two months old, and on the eve of the outbreak of the Civil War.
At first, Confederate currency was accepted throughout the
South
South is one of the cardinal directions or compass points. The direction is the opposite of north and is perpendicular to both west and east.
Etymology
The word ''south'' comes from Old English ''sūþ'', from earlier Proto-Germanic ''*sunþa ...
as a medium of exchange with high purchasing power. As the war progressed, confidence in the ultimate success waned, the amount of paper money increased, and their dates of redemption were extended further into the future. Most Confederate currency carried the phrase across the top of the bill:
"SIX MONTHS AFTER THE RATIFICATION OF A TREATY OF PEACE BETWEEN THE CONFEDERATE STATES AND THE UNITED STATES" then across the middle, the "
CONFEDERATE STATES OF AMERICA WILL PAY mount of billTO BEARER" (or "
...WILL PAY TO BEARER mount of bill or "
...WILL PAY TO BEARER ON DEMAND mount of bill).
As the war progressed, the currency underwent the depreciation and soaring prices characteristic of
inflation
In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
. For example, when news of the
Confederate defeat at Gettysburg reached the public, the Confederate currency depreciated 20%.
Confederate President
The president of the Confederate States was the head of state and head of government of the unrecognized breakaway Confederate States. The president was the chief executive of the federal government and commander-in-chief of the Confederate Ar ...
Jefferson Davis
Jefferson F. Davis (June 3, 1808December 6, 1889) was an American politician who served as the only President of the Confederate States of America, president of the Confederate States from 1861 to 1865. He represented Mississippi in the Unite ...
asked private citizens to restore the value of the Confederate dollar by mutually agreeing to sell and buy items only at reduced prices.
[Flounderings of the Rebel Financiers]
. ''The New York Times'' October 16, 1863. p. 4. In October 1863,
Confederate States Senator
The Confederate Senate was the upper house of the Confederate States Congress, Congress of the Confederate States of America. Its members were, like those of the United States Senate, elected for six year terms by the state legislature of each sta ...
Louis Wigfall
Louis Trezevant Wigfall (April 21, 1816 – February 18, 1874) was an American politician who served as a Confederate States Senator from Texas from 1862 to 1865. He was among a group of leading secessionists known as Fire-Eaters, advocati ...
of Texas said that a Confederate soldier received per month in pay, which was worth the same as had been worth at the beginning of the war.
[ In September 1864, one Confederate dollar was worth the same as three cents in gold currency.][Grant's Army: Gold Out of Sight in Richmond: Rebel Paper Absolutely Worthless]
. ''The New York Times''. September 28, 1864. p. 5. People tried to retain their wealth by buying gold to such an extent that, in Richmond, it was impossible to find someone who would sell their gold.[ On Christmas Day, 1864, the Confederate dollar's worth had decreased to such an extent that a turkey sold for and a ham for . By the war's end, a cake of soap could sell for as much as , and an ordinary suit of clothes was ,700.
Near the end of the war, the currency became practically worthless as a medium of exchange. This was because, for the most part, Confederate currency was ]bills of credit Bills may refer to:
__NOTOC__ Music
* "Bills" (song), a 2015 by LunchMoney Lewis
* "Bills", a 1960 song by Louis Jordan
* "Bills", a 1962 song by Denny Denson
* "The Bills", a 1997 piano composition by Carter Pann
People
* Keaton Bills (born 19 ...
, as in the Revolutionary War, not secured or backed by any assets. The only two exceptions were in Mississippi, where in 1862 a series of notes were issued with the backing of cotton stored by the state's planters and in Florida, where notes were backed, in theory, by public lands. Just as the currency issued by the Continental Congress was deemed worthless (witness the phrase ";" and see ''The Federalist Papers
''The Federalist Papers'' is a collection of 85 articles and essays written by Alexander Hamilton, James Madison, and John Jay under the collective pseudonym "Publius" to promote the ratification of the Constitution of the United States. The ...
'', which also addressed this issue in the run-up to the ratification of the U.S. Constitution
The Constitution of the United States is the supreme law of the United States of America. It superseded the Articles of Confederation, the nation's first constitution, on March 4, 1789. Originally including seven articles, the Constituti ...
) because they were not backed by any hard assets, this too became the case with Confederate currency. Even though gold and silver may have been scarce, some economic historians have suggested that the currency would have retained a relatively material degree of value, and for a longer period of time, had it been backed by hard goods the Confederacy did have, such as cotton or tobacco. When the Confederacy ceased to exist as a political entity at the end of the war, the money lost all value as fiat currency
Fiat money is a type of government-issued currency that is not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Fiat currency is typically designated by the issuing government to be legal tender, ...
.
Designs
The Confederacy, being limited in skilled engravers and printers as well as secure printing facilities, often had to make do with unrelated designs in early banknote issues. Some such were abstract depictions of mythological gods and goddesses, such as the Goddess of Liberty. Typical Confederate themes included naval ships and historical figures, including George Washington
George Washington (, 1799) was a Founding Fathers of the United States, Founding Father and the first president of the United States, serving from 1789 to 1797. As commander of the Continental Army, Washington led Patriot (American Revoluti ...
. Of the 72 notes issued by the Confederate States of America, five designs depicted slaves.
Since most engravers and bank plates were in the Northern states, Confederate printers used offset or lithographic process to copy scenes that had been used on whatever notes they had access to. Many variations in plates, printing and papers also appear in most of the issues, due in large part to the limits on commerce resulting from the Union blockade
The Union blockade in the American Civil War was a naval strategy by the United States to prevent the Confederate States of America, Confederacy from trading.
The blockade was proclaimed by President Abraham Lincoln in April 1861, and required ...
and the inadequate Confederate railroads in the American Civil War
The American Civil War was the first conflict where large armies heavily relied on railroads for transporting supplies. The Confederate States Army's railroad system was fragile and primarily designed for short hauls of cotton to nearby rivers or ...
.
People featured on banknotes include Andrew Jackson
Andrew Jackson (March 15, 1767 – June 8, 1845) was the seventh president of the United States from 1829 to 1837. Before Presidency of Andrew Jackson, his presidency, he rose to fame as a general in the U.S. Army and served in both houses ...
, John C. Calhoun
John Caldwell Calhoun (; March 18, 1782March 31, 1850) was an American statesman and political theorist who served as the seventh vice president of the United States from 1825 to 1832. Born in South Carolina, he adamantly defended American s ...
, Christopher Memminger
Christopher Gustavus Memminger (; January 9, 1803 – March 7, 1888) was a German-born American politician and a secessionist who participated in the formation of the Confederate States government. He was the principal author of the Provis ...
, Robert M. T. Hunter
Robert Mercer Taliaferro Hunter (April 21, 1809 – July 18, 1887) was an American lawyer, politician and planter. He was a United States House of Representatives, U.S. representative (1837–1843, 1845–1847), Speaker of the United ...
, Alexander H. Stephens
Alexander Hamilton Stephens (February 11, 1812 – March 4, 1883) was an American politician who served as the first and only Vice President of the Confederate States of America, vice president of the Confederate States from 1861 to 1865, and l ...
, Jefferson Davis
Jefferson F. Davis (June 3, 1808December 6, 1889) was an American politician who served as the only President of the Confederate States of America, president of the Confederate States from 1861 to 1865. He represented Mississippi in the Unite ...
, Judah P. Benjamin, Clement Clay, George W. Randolph, and Lucy Holcombe Pickens
Lucy Petway Holcombe Pickens (June 11, 1832 – August 8, 1899) was a 19th-century American socialite of Tennessee and Texas, known during and after her lifetime as the "Queen of the Confederacy". She was also a First Lady of South Carolina. ...
, the wife of the Governor of South Carolina. There was also a bill featuring George Washington.
Signatures
Confederate Treasury Notes were hand signed by various clerks, with exception of the 50 cent issues that had the printed signatures of Robert Tyler and Edward C. Elmore. The first six notes issued were hand signed by the Register and Treasurer themselves. While hand signatures were considered an anti-counterfeiting tool, the sheer number of bills being produced could not reasonably be signed individually by two men each. Women were often hired as clerks to sign "for Register" and "for Treasurer". Up to 200 clerks were eventually hired for each.
Coinage
As the Civil War continued, the cost of the war loomed large. Any precious metal
Precious metals are rare, naturally occurring metallic chemical elements of high Value (economics), economic value. Precious metals, particularly the noble metals, are more corrosion resistant and less reactivity (chemistry), chemically reac ...
s available in the South often made their way to Europe to procure war goods, but the CSA did manage to mint a few coins. In 1861, Robert Lovett Jr. of Philadelphia
Philadelphia ( ), colloquially referred to as Philly, is the List of municipalities in Pennsylvania, most populous city in the U.S. state of Pennsylvania and the List of United States cities by population, sixth-most populous city in the Unit ...
was commissioned to design, engrave, and make a one cent piece for the Confederacy. On the obverse (front), he used the head of Minerva
Minerva (; ; ) is the Roman goddess of wisdom, justice, law, victory, and the sponsor of arts, trade, and strategy. She is also a goddess of warfare, though with a focus on strategic warfare, rather than the violence of gods such as Mars. Be ...
(French Liberty Head), which he had used on several store cards. The coins were struck using the then Federal standard of cupronickel
Cupronickel or copper–nickel (CuNi) is an alloy of copper with nickel, usually along with small quantities of other metals added for strength, such as iron and manganese. The copper content typically varies from 60 to 90 percent. ( Monel is a n ...
for cent pieces. He made a few samples, of which only 12 had been said to exist by the popular stories but research has shown that 14 are currently known to exist. Fearing prosecution for aiding the enemy, he stopped his work and hid the coins and dies in his cellar. The original dies were purchased later and used to make restrikes, first by John W. Haseltine and later by Robert S. Bashlow. The dies were donated to the Smithsonian Institution
The Smithsonian Institution ( ), or simply the Smithsonian, is a group of museums, Education center, education and Research institute, research centers, created by the Federal government of the United States, U.S. government "for the increase a ...
by Bashlow in 1962.
In the aftermath of secession, the Confederacy seized U.S. Mint
The United States Mint is a bureau of the Department of the Treasury responsible for producing coinage for the United States to conduct its trade and commerce, as well as controlling the movement of bullion. The U.S. Mint is one of two U.S. age ...
facilities at Charlotte, North Carolina
Charlotte ( ) is the List of municipalities in North Carolina, most populous city in the U.S. state of North Carolina and the county seat of Mecklenburg County, North Carolina, Mecklenburg County. The population was 874,579 at the 2020 United ...
, Dahlonega, Georgia
Dahlonega ( ) is the county seat of Lumpkin County, Georgia, United States. As of the 2010 United States Census, 2010 census, the city had a population of 5,242, and in 2018 the population was estimated to be 6,884.
Dahlonega is located at t ...
, and New Orleans, Louisiana
New Orleans (commonly known as NOLA or The Big Easy among other nicknames) is a Consolidated city-county, consolidated city-parish located along the Mississippi River in the U.S. state of Louisiana. With a population of 383,997 at the 2020 ...
. After seizing and appropriating the bullion reserves stored at the facilities, the Confederate Treasury, led by C. G. Memminger, determined that the cost of minting coins far outweighed the benefits. Circulating specie
Specie may refer to:
* Coins or other metal money in mass circulation
* Bullion coins
* Hard money (policy)
* Commodity money
* Specie Circular, 1836 executive order by US President Andrew Jackson regarding hard money
* Specie Payment Resumption A ...
would be virtually nonexistent in the Confederacy throughout the entirety of the war. A wide variety of local token and scrip would attempt to fill this void, to little avail.
In late April 1861, four Confederate half dollar
The term "half dollar" refers to a half-unit of several currencies that are named "dollar". One dollar ( $1) is normally divided into subsidiary currency of 100 cents, so a half dollar is equal to 50 cents. Although more than a dozen countries h ...
s were struck on a hand press by employees of the New Orleans Mint. Because of the high relief of the coin die
Mint (coin), Minting, coining or coinage is the process of manufacturing coins using a kind of stamping (metalworking), stamping, the process used in both hammered coinage and milled coinage. This "stamping" process is different from the method ...
, a test striking was made to determine if coins would release from the Confederate die. The die was made by a printing plate
Printing is a process for mass reproducing text and images using a master form or template. The earliest non-paper products involving printing include cylinder seals and objects such as the Cyrus Cylinder and the Cylinders of Nabonidus. The ...
engraver (A.H.M. Peterson) in New Orleans
New Orleans (commonly known as NOLA or The Big Easy among other nicknames) is a Consolidated city-county, consolidated city-parish located along the Mississippi River in the U.S. state of Louisiana. With a population of 383,997 at the 2020 ...
who was unfamiliar with techniques required to engrave coining dies. These coins were struck using a U.S. obverse die ( Seated Liberty) and the Confederate die made by Peterson. These coins are known as ''originals'', and the location of all four of the coins is known today.
As the result of an 1879 article about the Confederate cent printed in a New York City
New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
newspaper, Benjamin F. Taylor, M.D. (Chief Coiner, New Orleans Mint, CSA) contacted coin dealer Ebenezer Mason. Taylor informed Mason of the existence of the Confederate half dollar and the die. Mason bought the die and coin from Taylor and sold them to J.W. Scott Co. of New York City, a coin and stamp dealer. Scott bought 500 1861 United States half dollars from a New York bank that were supposedly struck at the New Orleans Mint. Scott had the reverse of the half dollars planed down and performed a one-sided strike using the Confederate half dollar die. The Seated Liberty obverse of the coins were flattened some because of the one-sided strike. In addition, Scott struck 500 half dollar-sized tokens in white metal
The white metals are a series of often decorative bright metal alloys used as a base for plated silverware, ornaments or novelties, as well as any of several lead-based or tin-based alloys used for things like bearings, jewellery, miniature f ...
using the Confederate die and a newly made die to commemorate the restrikes of the Confederate half dollars. The Confederate half dollar die went missing during the 1920s and has not been seen since.
Popular stories claim one of the Confederate half dollars was given to Confederate President Jefferson Davis
Jefferson F. Davis (June 3, 1808December 6, 1889) was an American politician who served as the only President of the Confederate States of America, president of the Confederate States from 1861 to 1865. He represented Mississippi in the Unite ...
. This story has no basis in fact. In an 1879 letter to Ebenezer Mason, Davis confirmed that a Union soldier (actually a Federal Officer) stole a coin from one of his wife's trunks, but could not confirm that it was like the then known Confederate half dollar. It is possible that the coin was a gold
Gold is a chemical element; it has chemical symbol Au (from Latin ) and atomic number 79. In its pure form, it is a brightness, bright, slightly orange-yellow, dense, soft, malleable, and ductile metal. Chemically, gold is a transition metal ...
so-called Jefferson Davis dime struck at the Paris (France) Mint, which Davis described to coin dealer Ed Frossard in an 1880 letter. All known Jefferson Davis dimes were struck in silver
Silver is a chemical element; it has Symbol (chemistry), symbol Ag () and atomic number 47. A soft, whitish-gray, lustrous transition metal, it exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. ...
at the Paris Mint. The Davis letter is the only known reference to a gold specimen, which was likely a special presentation piece made for Davis.
Banknotes
Confederate Treasury Notes (banknote
A banknote or bank notealso called a bill (North American English) or simply a noteis a type of paper money that is made and distributed ("issued") by a bank of issue, payable to the bearer on demand. Banknotes were originally issued by commerc ...
s) were ultimately issued in 50¢, , , , , , , , , and denominations with a variety of designs, issuers, and redeemable obligations. The amount of currency
A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general definition is that a currency is a ''system of money'' in common use within a specific envi ...
issued under the various acts of the Confederate Congress
The Confederate States Congress was both the provisional and permanent legislative assembly/legislature of the Confederate States of America that existed from February 1861 to April/June 1865, during the American Civil War. Its actions were, ...
totaled .7 billion. Bills were released in 72 different note "types" in seven "series" from 1861 through 1864.
Since there were many types of Confederate notes as well as notes issued by the states of the Confederacy, and since bank
A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
s could issue their own notes, counterfeiting
A counterfeit is a fake or unauthorized replica of a genuine product, such as money, documents, designer items, or other valuable goods. Counterfeiting generally involves creating an imitation of a genuine item that closely resembles the original ...
was a major problem for the Confederacy. Many of these contemporary counterfeits are identifiable today and they can be as valuable to a collector as a real note.
Confederate dollars and coins remain the subject of a lively trade, with careful grading of damage and deterioration similar to booksellers' gradings.
Series of CSA notes
Banknote printers and engravers
Complete typeset of CSA banknotes
See also
* Economy of the Confederate States of America
The Confederate States of America (1861–1865) started with an Agrarian economy, agrarian-based economy that relied heavily on Slavery in the United States, slave-worked Plantation complexes in the Southern United States, plantations for the King ...
* , which banned the Federal recognition of Confederate debts or currency
* Samuel C. Upham, a notorious counterfeiter of Confederate bills
* Texas dollar
The Texas dollar was the currency of the Republic of Texas. Several forms of currency were issued, but an ongoing economic depression made it difficult for the government to provide effective backing. The republic accepted the standard gold and s ...
* United States dollar
The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
Notes
References
Bibliography
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External links
The Story of Confederate Currency
Collecting Confederate Paper Money
Professional Grading Service
* ttp://cdm.bostonathenaeum.org/cdm/landingpage/collection/p16057coll13 Boston Athenæum: Paper Currency from the Confederate States of America, Digital Collection
Civil War Confederate Currency Collection from Georgia State University
{{Portal bar, American Civil War, Money, Numismatics
1861 establishments in the Confederate States of America
Economic history of the American Civil War
Confederate States of America currency
Currencies introduced in 1861
Dollar