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.
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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.
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“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.”
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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.
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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.
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“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.”
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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.
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“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.”
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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.
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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.
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“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.”
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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.
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“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.”
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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.
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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.
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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.”
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As the Civil War wound down
and ended, Confederate and Southern currency and scrip collapsed
completely.
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“Confederate money was
equated in value to shin splints - bandages,” said Post. “It was
basically worthless.”
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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.
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“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.”
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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.
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“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.
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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.
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For more information on this
currency and scrip, see
Authentic Montgomery
County
Currency from 1862. |
Conroe Courier |
May 11, 2014 |
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Authentic Montgomery
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Currency from 1862
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