If you are keen on collecting old money you will probably know that a collector's item of old money is called fractional currency. I was really intrigued when I learnt that during the Civil War the United States began printing 50 cents, 25 cents, 15 cents, 10 cents and 5 cents paper money as they run short on change. Now such weird banknotes are highly desired by any true collector.

There is also other interesting fractional currency which is much sought after. These are private banknotes from the 1800s. Before the US government created a national banknote there were some banks issuing their own money without government backing. However, it was not long before these banks were closed down and the banknotes were counterfeited and altered.

Once the national bank system was established, privately issued bank money was declared to be illegal. Ever since US government money was issued it has retained monetary value. However, it is not the same case with the obsolete old bills from closed banks and this is the prime reason why these banknotes are worth finding. Actually private banknotes from the 1800s have remained an interesting item for collectors throughout the centuries.

It is pretty evident that a lot of old money has significant value nowadays. It is true that casual collectors cannot afford to have any authentic old money and notes from the 1800s and early 1900s as their value and consequently price are too high. That's how collecting souvenir cards are becoming more and more popular. Having them you can collect a piece of history without actually paying a high price for it.

If you are wondering where you can find old money, you probably won't like my answer. It is really difficult to find old money. Of course, you might still be able to collect a Thomas Jefferson two dollar bill, but those antique coins and notes you are seeking won't be easily found, nor purchased. The easiest way to satisfy your desire to collect old money is through dealers, collectors, auctions and old money paper shows.

You might also find the International Bank Note Society's Journal and webpage not only very interesting but useful, as well. They offer contact information for trades and auctions and what is the best, they provide you with images of old currency on their website. In conclusion, old money collecting is a unique and fun hobby. It has its challenges but it there is no doubt it is worth taking.

About the Author

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning credit. Learn more at Collecting Old Money

Because they appeared much the same to the 5 cent and 10 cent postage stamps, the first issue of these notes were referred to as Postage Stamp Currency. The Postage Stamp Currency was never allowed as legal tender and the only two uses of it was: 1.) To be traded for United States Notes in $5 increments and 2.) To be receivable as payment for dues to the United States government in $5 amounts or less.

In the beginning months of being produced, the bank notes were printed in perforated sheets sold to both banks and the public so that people could easily rip off what they needed.  After a while, the notes were just printed to be cut with scissors because the perforating machine could not handle the amounts of notes.

A new order of Fractional Currency bank Notes were printed in 1863. These bank notes were more colorful and more difficult to counterfeit than the Postage Currency of 1862. This was requested by U.S. Secretary of the Treasury, Salmon P. Chase.

There was a controversy with the third order of the 5 cent bank note because Spencer M. Clark's ( the National Currency Bureua's first superintendent) portrait was on the note which was illegal due to the law that requires notable U.S. citizens on currency to be deceased for at least two years.

In September of 1883, United States Fractional Currency was replaced by postal notes. Postal notes were made for the purpose of sending amounts of money $5 or under to distant places both securely and at a low cost.

1863-67 25¢ US Fractional Currency CRISP BEAUTIFUL NOTE    US $99.99

1874 TWENTY FIVE CENT US FRACTIONAL NOTE    US $39.00

1876 FIFTY CENT US FRACTIONAL NOTE    US $49.00