Sahara Coins

Grading Service

Pre-Civil War Treasury Notes (1812-1861)

Pre-Civil War Treasury Notes

It is generally thought that the Interest Bearing Treasury Notes of 1861 were the first paper money issued by the U.S. government, although this is not the case. Pre-Civil War Treasury Notes were first on the scene and followed with a long series of the Pre-Civil War Treasury Notes.

Due to the Nation�s financial straits following the War of 1812, the U.S. Treasury issued five separate series of notes between 1812 and 1815, originally intended as loans to the government. The notes in denominations that ranged from $3 to $1,000 were in fact receivable for debts, taxes and duties due the federal government and very quickly became circulated forms of currency.

These notes were considered �as good as Gold� compared to current private bank notes of the era. However, the notes of 1812 through 1815 and later issues up to 1861 were not ever actually legal tender for all debts, public and private. This fact highly distinguishes Pre-Civil War Treasury Notes from legal tender notes introduced into circulation in the Civil War.

Some characteristics of Pre-Civil War Treasury Notes are that most bear the date of the act that authorized them and an issue date (in ink) and the catalog section is arranged by authorization dates rather than issue dates.

Congress brought forth the following: Acts of June 30, 1812; February 25, 1813; March 4, 1814; and February 24, 1815 that authorized an entire series of interest bearing Treasury notes to provide spot cash and provide bridge financing. These Treasury notes were at 5.4% or 1.44 cents per day per $100. Congress however created the first �true currency� by the Act of 1815, with notes in denominations of $3 through $50 bearing no interest, but leaving $100 denomination notes bearing the annual 5.4% interest.

Several panics throughout the 1812-1861 period of time influenced through necessity, more series of Pre-Civil War Treasury Notes. Eight more series were issued due to the panic of 1837-1843. Those notes were engraved by Rawdon Wright & Hatch (RWH) and signed by the Treasurer of the United States which differed from that of the notes of the War of 1812 (1812-1815) which were signed by commissioners.

Two more series, signed by the U.S. Treasurer were the result of the Mexican War in 1846 and 1847. A general recession in 1856 paved the way for the panic of 1857 which brought about the next three series issued from December 1857 through March 1861. Rather than previous issues of predetermined rates, the notes of these last series were offered at competitive rates.

With confidence in the federal government being so exceedingly low, of the $10 million of 6% notes offered in December 1860, only $70,000 worth was taken up and the remaining notes in the last series had to be offered at rates above 6%. The Acts of July 17 and August 5, 1861 brought about the authorization of the final issues of the Pre-Civil War Treasury Notes.

Points of Interest: One of the largest private collections of Pre-Civil War U.S. Treasury Notes (1812-1815) ever assembled was that of a famous French politician and numismatist, Alexandre Vattemare which was sold at auction by Christie Manson & Woods International in 1982. Later re-auctions in 2000 placed the majority of the Vattemare collection into the possession of John J. Ford Jr.