CIVIL WAR MONEY

 During the Civil War, coins disappeared from circulation.  People hoarded “hard money” and spent paper money.  Because almost no coins remained in circulation, it was a pain to make change for small purchases.

A solution came when New-York Tribune owner Horace Greeley suggested using postage stamps instead of small change.  Secretary of the Treasury Salmon Chase petitioned Congress to authorize Greeley’s idea.  On July 17, an act was passed allowing the Treasury to issue Postage Currency.