For sale is a rare 1861 CONFEDERATE STATES OF AMERICA $1,000 PROMISSARY NOTE – $40 BOND COUPON from Richmond, Virginia. This bond coupon is in excellent condition. This confederate bond paid an eight percent interest rate. The print on the note reads: “C.S. Loan of 1861 – The Confederate States of America WILL PAY TO THE BEARER FOFTY DOLLARS for Six Months Interest due Sept 1st,. 1864. On Bond No. 033, payable to the Treasury of the Confederate States. For the Register of the Treasury”. The bond is hand signed . This small bond coupon measures about 3 inches by 1 1/2 inches. An amazing historic collectible.
When the Civil War began the Confederate Government still accepted United States currency. To pay for the war, the Confederate government issued a vast array of paper currencies. Confederate States of America (CSA) promissory notes, also known as “graybacks,” were issued during the Civil War as a form of currency, promising payment after a Southern victory, but ultimately became worthless after the Confederacy’s defeat. The notes were nicknamed “graybacks” after the color of Confederate soldiers’ uniforms. In addition to the central government, individual states and even cities issued their own currency, further complicating the situation.
Making things even more confusing, state governments issued their own currencies — as did banks, insurance companies, and businesses. None of this paper money could be redeemed, or traded for, gold or silver — as was common in the early nineteenth century. The Confederate government had no gold or silver to make coins. Instead, Confederate paper money was like a loan — a promissory note or promise to pay at a later time. At the start of the war, when southerners expected to win the war, they were willing to trust that their paper dollars would continue to hold value. But as the South started to slide towards defeat, they lost faith in not only their chances of victory but their money as well.
The Confederate Government printed a million dollars’ worth of notes, which were treated more as bonds than bills since they were issued in such large denominations including $50, $100, and $500. Early in the civil war, much of the Confederate currency was produced in New York City. Eventually other printing firms such as the Southern Bank Note Company in New Orleans also made notes.
