Discussion - Member to Member Sales - Research Center
Discussion - Member to Member Sales - Research Center
I want to purchase a couple of these from a local antique dealer he has the 25 cent and a 5 dollar denominations. The price he is asking is significantly lower than EBay which makes me suspicious.
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It's my understanding (that is if I understand the Wikipedia article) that these were only printed in denominations of 5c, 10c, 25c, and 50c. No $5 value.
Tedski
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I clearly saw a $5.00 postal note. If it isn't postal currency as the dealer states what is it? 
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I'm learning this as we go along, here.
What you see here is the reverse of a 5c bill. All the denominations, from 3c to 50c, had this text. A person would receive these when owed less than $5 in change. You could, then, exchange these for US Notes in minimum sums of $5.
ref: Paper Money of the United States
Tedski
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Also, just as with Confederate currency, replicas of these items abound. 2 words come to mind: Caveat emptor.
Tedski
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Thanks Ted I am learning as I go along as well. The picture of the one I showed in the post is on EBay for $90.00. The antique dealer is asking $25 for each. I suspect the ones I am looking at and maybe the one pictured are counterfeit. The printing method, water mark or embossed paper design might validate their authenticity. If someone has examples of postal currancey I would like to know. I would think any serious US revenue collector would have some examples.
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Postage Currency is beyond my area of expertise, but I did elect to include an example in what I call the Beyond BOB part of my collection. This page includes a copy of postage currency and encased postage:
http://www.colp.info/stamps/pages/Z3a.htm
The text on the page is wrong, however. Postage stamps were not affixed to the postage currency. Postage stamp IMAGES were placed on the paper. I need to update that page.
Only the first issue of fractional currency used images from postage stamps. Subsequent issues fall more into the realm of numismatics than philately.
Tedski is correct, your image is from the reverse. There is a section for Postage Currency in the Scott Specialized US catalog with more information and pricing information.
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I have been collecting U.S. paper money for more than eighteen years (I started collecting coins before I began collecting stamps). Scott does not have very much information on postal currency, but I have included links and suggestions to a few resources below.
Condition is THE most important factor when collecting paper money. When collecting currency, you should look for notes that are VF (Very Fine) or better (the note in the picture you provided looks to be in VG to Fine). Notes in higher grades appreciate in value faster, so it is always better to hold out for a note in the best condition you can find given your budget. The following website offers a good introduction to grading U.S. currency (albeit with larger denominations as examples):
http://oldcurrencyvalues.com/GradingCurrency.html
Postal, also known as fractional, notes were printed in five issues between 1862-1876 in denominations ranging from three cents to fifty cents.
Fractional notes employed several different paper varieties. Some denominations are watermarked, and a few can even be found with the watermark "CSA," the result of paper seized from a Confederate blockade runner (the paper was originally intended to print Confederate currency, but federal officials decided that the paper should not be put to waste). Q David Bowers' Whitman Encyclopedia of U.S. Paper Money has a detailed description of paper varieties and a history of the printing process (this book is very expensive, but has nice color pictures of all varieties of U.S. currency).
Fractional currency is rarely counterfeited (most notes are very common compared to their larger denomination counterparts), and contemporary counterfeits are usually very crude and easy to distinguish. The following website has a page showing some examples of contemporary counterfeits (which are also collectible):
http://www.myfractionalnotes.com/
For identifying U.S. currency, Robert Friederg's Paper Money of the United States is the standard reference work. You will often see notes identified by their "FR" numbers.
(Modified by Moderator on 2013-05-11 05:02:47)
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I knew I could count on SOR members for more information. The links provided were helpful as well as the additional research I did on my own.
From what I learned fractional or postal currency was used as an effort to stop people from using stamps in lieu of coins for change. The very first government issue of postal currency was perforated like stamps. The demand was so high the perforation machines couldn’t keep up. The lack of coinage was a result of people hoarding gold and silver coins due to a lack in faith in paper money and inflation. Despite being illegal merchants and banks also printed their own paper coinage and some of them are quite beautiful, rare and very collectable.
I guess with all the complaining about coins costing more to produce than they are worth fractional currency could make a comeback.
I like the looks of the postal currency and they will be a nice addition to my album. For $50 I think I will take my chances and purchase them.
On a side note I have found several coins and old paper currency in lots of covers with letters I have purchased in the past. It is always a nice bonus.
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Fractional currency was introduced to facilitate commerce during the Civil War. Specie was scarce during the war and many Americans began using postage stamps for small transactions. Some merchants began encapsulating postage stamps in small holders to produce "encased postage stamps" (examples can be found in Scott specialized).
In 1862, the Secretary of the Treasury, Salmon P. Chase, urged Congress to authorize the printing of small denomination notes. The Postmaster General recommended that the notes resemble the designs found on postage stamps. Fractional currency was printed in five "issues" between 1862-1876.
It was not illegal in the nineteenth century for private banks to issue paper money. Beginning in 1863, the National Banking Act established a prohibitive tax on any note producing banks operating outside of the National Banking System. Collectors refer to notes issued by private and state chartered banks as "obsolete notes" or "broken bank notes."
Fractional currency would be less expensive to produce than many coins, but they would have to be replaced more frequently. The average paper dollar in circulation lasts about eighteen months, compared to thirty or forty years or more for most coins.
I would be happy to trade for any coins or old paper money you would be interested in trading; send me an email if you are interested.
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Bumped this up as the topic has been brought back.
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I am hoping someone on SOR can enlighten me on the specifics of collecting postal currency. I thought they would make a nice addition to my stamps from the same era. What do I need to look at as far as condition? How does condition affect the price? Are they often counterfeited? Is the paper watermarked? What printing method was used?
I want to purchase a couple of these from a local antique dealer he has the 25 cent and a 5 dollar denominations. The price he is asking is significantly lower than EBay which makes me suspicious.
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re: US Postal Currency
It's my understanding (that is if I understand the Wikipedia article) that these were only printed in denominations of 5c, 10c, 25c, and 50c. No $5 value.
Tedski
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re: US Postal Currency
I clearly saw a $5.00 postal note. If it isn't postal currency as the dealer states what is it?
Login to Like
this post
re: US Postal Currency
I'm learning this as we go along, here.
What you see here is the reverse of a 5c bill. All the denominations, from 3c to 50c, had this text. A person would receive these when owed less than $5 in change. You could, then, exchange these for US Notes in minimum sums of $5.
ref: Paper Money of the United States
Tedski
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this post
re: US Postal Currency
Also, just as with Confederate currency, replicas of these items abound. 2 words come to mind: Caveat emptor.
Tedski
Login to Like
this post
re: US Postal Currency
Thanks Ted I am learning as I go along as well. The picture of the one I showed in the post is on EBay for $90.00. The antique dealer is asking $25 for each. I suspect the ones I am looking at and maybe the one pictured are counterfeit. The printing method, water mark or embossed paper design might validate their authenticity. If someone has examples of postal currancey I would like to know. I would think any serious US revenue collector would have some examples.
Login to Like
this post
re: US Postal Currency
Postage Currency is beyond my area of expertise, but I did elect to include an example in what I call the Beyond BOB part of my collection. This page includes a copy of postage currency and encased postage:
http://www.colp.info/stamps/pages/Z3a.htm
The text on the page is wrong, however. Postage stamps were not affixed to the postage currency. Postage stamp IMAGES were placed on the paper. I need to update that page.
Only the first issue of fractional currency used images from postage stamps. Subsequent issues fall more into the realm of numismatics than philately.
Tedski is correct, your image is from the reverse. There is a section for Postage Currency in the Scott Specialized US catalog with more information and pricing information.
Login to Like
this post
re: US Postal Currency
I have been collecting U.S. paper money for more than eighteen years (I started collecting coins before I began collecting stamps). Scott does not have very much information on postal currency, but I have included links and suggestions to a few resources below.
Condition is THE most important factor when collecting paper money. When collecting currency, you should look for notes that are VF (Very Fine) or better (the note in the picture you provided looks to be in VG to Fine). Notes in higher grades appreciate in value faster, so it is always better to hold out for a note in the best condition you can find given your budget. The following website offers a good introduction to grading U.S. currency (albeit with larger denominations as examples):
http://oldcurrencyvalues.com/GradingCurrency.html
Postal, also known as fractional, notes were printed in five issues between 1862-1876 in denominations ranging from three cents to fifty cents.
Fractional notes employed several different paper varieties. Some denominations are watermarked, and a few can even be found with the watermark "CSA," the result of paper seized from a Confederate blockade runner (the paper was originally intended to print Confederate currency, but federal officials decided that the paper should not be put to waste). Q David Bowers' Whitman Encyclopedia of U.S. Paper Money has a detailed description of paper varieties and a history of the printing process (this book is very expensive, but has nice color pictures of all varieties of U.S. currency).
Fractional currency is rarely counterfeited (most notes are very common compared to their larger denomination counterparts), and contemporary counterfeits are usually very crude and easy to distinguish. The following website has a page showing some examples of contemporary counterfeits (which are also collectible):
http://www.myfractionalnotes.com/
For identifying U.S. currency, Robert Friederg's Paper Money of the United States is the standard reference work. You will often see notes identified by their "FR" numbers.
(Modified by Moderator on 2013-05-11 05:02:47)
Login to Like
this post
re: US Postal Currency
I knew I could count on SOR members for more information. The links provided were helpful as well as the additional research I did on my own.
From what I learned fractional or postal currency was used as an effort to stop people from using stamps in lieu of coins for change. The very first government issue of postal currency was perforated like stamps. The demand was so high the perforation machines couldn’t keep up. The lack of coinage was a result of people hoarding gold and silver coins due to a lack in faith in paper money and inflation. Despite being illegal merchants and banks also printed their own paper coinage and some of them are quite beautiful, rare and very collectable.
I guess with all the complaining about coins costing more to produce than they are worth fractional currency could make a comeback.
I like the looks of the postal currency and they will be a nice addition to my album. For $50 I think I will take my chances and purchase them.
On a side note I have found several coins and old paper currency in lots of covers with letters I have purchased in the past. It is always a nice bonus.
Login to Like
this post
re: US Postal Currency
Fractional currency was introduced to facilitate commerce during the Civil War. Specie was scarce during the war and many Americans began using postage stamps for small transactions. Some merchants began encapsulating postage stamps in small holders to produce "encased postage stamps" (examples can be found in Scott specialized).
In 1862, the Secretary of the Treasury, Salmon P. Chase, urged Congress to authorize the printing of small denomination notes. The Postmaster General recommended that the notes resemble the designs found on postage stamps. Fractional currency was printed in five "issues" between 1862-1876.
It was not illegal in the nineteenth century for private banks to issue paper money. Beginning in 1863, the National Banking Act established a prohibitive tax on any note producing banks operating outside of the National Banking System. Collectors refer to notes issued by private and state chartered banks as "obsolete notes" or "broken bank notes."
Fractional currency would be less expensive to produce than many coins, but they would have to be replaced more frequently. The average paper dollar in circulation lasts about eighteen months, compared to thirty or forty years or more for most coins.
I would be happy to trade for any coins or old paper money you would be interested in trading; send me an email if you are interested.
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12:22:00pm
re: US Postal Currency
Bumped this up as the topic has been brought back.
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