2016-10-03 Mon

Shinplasters like the 50-cent note depicted alongside issued by coffeehouse owner George W. Holt replaced coins during the Civil War. The union forces attacked the New Orleans in April 1862. The city tried to survive even after cotton which was considered to be the wealth of the South was burned before the Union could capture it. Even the precious metals were removed from the city.

General transactions happened through Confederate bills, privately issued bank notes and shinplasters which replaced coins during the war. Coffeehouse owner George W. Holt advertised that his shinplasters were good a few weeks before the Union takeover.

The city’s 13 banks discussed how to settle accounts before the city collapsed. Most of them decided to liquidate. Some redeemed their deposits in either gold or silver, while others redeemed only in specie: and others offered 50 percent in specie and the remaining in Confederate treasury notes. Confederate currency had depreciated considerably and a gold dollar was redeemed for a 2 dollar note.

On 25th April, Union warships attacked New Orleans and asked for surrender. A report stated that most banks redeemed their circulation in specie up to 23rd April and discontinued after that with the orders of the government at Richmond.