Coins were hoarded during the Civil War in the 1860s. Coins in circulation often demanded more than their value in paper money. Merchants tried to solve the problem with various tokens now known as Civil War Tokens. Municipal, corporate, and local script and encased postage stamps all were tried but couldn't meet the need.
In 1862 the Treasurer of the US, F. E. Spinner, convinced Congress to address the problem by authorizing an issue of fractional currency and making postage stamps legal as money on July 17. These fractional notes were originally issued in 5c, 10c, 25c, and 50c denominations....