Fractional currency

Fractional currency, also referred to as shinplasters, was introduced by the United States federal government following the outbreak of the Civil War.

[nb 1] The Civil War economy catalyzed a shortage of United States coinage[4]—gold and silver coins were hoarded given their intrinsic bullion value relative to irredeemable paper currency at the time.

The United States Department of the Treasury suspended specie payments[8] and banks in New York City stopped redeeming paper money for gold and silver.

[10] This fueled currency speculation (e.g., redeeming banknotes for silver coin which was then sold at a premium as bullion),[12] and created significant disruption across businesses and trade.

[nb 3] They were more colorful with printing on the reverse, and several anti-counterfeiting measures were employed: experimental paper, adding surcharges, overprints, blue endpaper, silk fibers, and watermarks to name a few.

[15][22] Three people were depicted on fractional currency during their lifetime: Francis E. Spinner (Treasurer of the United States), William P. Fessenden (U.S.

[33] Republican Representative Martin R. Thayer of Pennsylvania was an outspoken critic, suggesting that the Treasury's privilege of portrait selection for currency[34] was being abused.