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Civil War-era Currency and Scrip
Increasingly Rare and Valuable

Brad Meyer, Contributing Writer
 

The idea that state and local governments low on cash could just print money as needed to pay their bills is surprising to many, but it is a reality that happened all over the South during the Civil War - including here in Montgomery County.
 

A Cleveland couple has acquired a rare $1 bill issued Oct. 24, 1862, by Montgomery County during the Civil War. The note has been donated to the Heritage Museum of Montgomery County in Conroe where it will be on display for the public to see.
 

“To my knowledge, this may be the only Montgomery County Currency that anyone in Montgomery County has seen in the last 100 years,” said Larry Foerster, chairman of the Montgomery County Historical Commission. “It’s a rare find.”

 


Larry Foerster, chairman of the Montgomery County Historical Commission, displays a $1 piece of scrip recently discovered to be in the possession of a Cleveland couple. The bill, dating from 1862, is now at the Heritage Museum of Montgomery County and will soon be on display there.

As an independent republic, earlier Texas currency exists, but Civil War-era currency and scrip is particularly interesting and appealing to numismatic collectors. Scrip is a substitute form of currency, usually intended for a “warranty of payment” for a specific purpose or geographic area.
 

“When the Civil War began, the vast majority of banking, currency production and gold and silver reserves were in federal control in the north,” said John Post, senior official with the Texas Numismatic Association. “The Confederate government, Southern states and counties had to create some type of money for the exchange of goods and services.”
 

Without access to federal banking, Southern governments created their own currency. While most Confederate and state notes were issued on quality paper, many counties were forced to print currency and scrip on whatever paper stock was available.
 

“The back of the scrip may have a completely different look or have nothing to do with the currency factor,” said Post. “They used what they had on hand.”
 

The online Rowe-Barr Collection of Texas Currency features several bills in different denominations issued by Montgomery County during the Civil War era. Most are individually signed by then County Clerk Appleton Gay and Montgomery County Chief Justice Bell - the county judge.
 

The creation of local currency was authorized by the state of Texas, said Post, to enable local economies to function, collect taxes and pay bills. The currency was not, however, backed by gold, silver or other valuable asset.
 

“Southern currency was based on trust and confidence that the South would win the war,” said Post. “There was a fair amount of confidence early in the war.”
 

But Montgomery County scrip was intended for use in the local area. Attempting to exchange it for goods or services in other states - or other parts of Texas - would likely meet resistance, especially as the Civil War dragged on.
 

“You might get 50 cents on the dollar to redeem it outside the area,” said Post. “It would be hard for the recipient to redeem it without a national banking system in place.”
 

There was also the issue of counterfeit currency. During the Civil War, anyone with access to a printing press could attempt to replicate currency and scrip. And because many of the designs were fairly simple, so was counterfeiting. Bogus currency was a problem in both the north and the south, according to Post.
 

More than $2 million in treasury warrant currency and scrip was put in place in Texas, but because of a lack of backing, counterfeiting and loss of confidence, the currency and scrip began to depreciate in value as the war continued. While local merchants were encouraged - and is many cases coerced - to accept Southern currency and script - its value declined. By 1864, $50 in Confederate dollars had the purchasing power of $1 three years earlier.
 

Texas, however, was actually in better shape economically than other Confederate states. Tax payments were mandatory throughout the war, enforced by foreclosure sales. Among the uses of scrip in Texas was for the purpose of paying taxes. Prominently printed on the Montgomery County scrip is the notice: “Receivable for County Taxes and Dues.”
 

As the Civil War wound down and ended, Confederate and Southern currency and scrip collapsed completely.
 

“Confederate money was equated in value to shin splints - bandages,” said Post. “It was basically worthless.”
 

Beyond keepsakes and novelties, much of the money produced by the South during the Civil War was destroyed. Rarity plus time, however, has increased the value of authentic Confederate money - including scrip issued by Montgomery County.
 

“There’s a lot of interest in Civil War era currency and scrip,” said Post. “The right bills in the right condition can be worth tens of thousands of dollars or more.”
 

While the $1 scrip acquired by the Cleveland couple has not been officially graded, local numismatic expert Jim Bevill estimated its value in the low hundreds.
 

“There’s no doubt most authentic Civil War-era currency and scrip is a lot more valuable now than it was when it was created,” quipped Post.
 

Samples of Texas currency and scrip from the Rowe-Barr Collection of Texas Currency, including examples issued by Montgomery County, can be seen online at www.bit.ly/1j701rP. The Texas Numismatic Association is holding its annual convention and coin show May 17 in Arlington, Texas.

 

For more information on this currency and scrip, see Authentic Montgomery County Currency from 1862.

 

Conroe Courier

May 11, 2014

 

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