Secession & Specie

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The history of Mississippi’s paper money issued during the Civil War is full of twists and turns, with a bit of intrigue and mystery sprinkled in. It spans from the earliest days of secession to the war’s final weeks. Mississippi’s commitment to King Cotton resulted in a majority (55 percent) of the state’s population being enslaved persons in the 1860 census. Unlike some other southern states, Mississippi’s decision to secede from the Union came swiftly and with little debate. In fact, it became the second state to do so (after South Carolina) on January 9, 1861, and Mississippi was admitted into the Confederacy on February 4.

ABNCo’s Dual Locations 

Less than three weeks after seceding from the Union, the state legislature passed the Act of January 26, 1861, that authorized $1 million in $10, $20, $50, and $100 notes that paid a rather generous 10-percent interest rate. The state chose American Bank Note Company (ABNCo) to print the notes, with each note (Figure 1) bearing the imprint: “American Bank Note Co. N.Y. and N.O.” This is significant because no attempt was made to disguise the company’s identity or location (New York and New Orleans appear as office locations). 

Months later, the company would take a different tack, using an old trade name, Southern Bank Note Company, on notes its New Orleans office produced for the Confederacy. This was, in my opinion, a way to give just a little bit of plausible deniability to the company in New York. The dual location imprint used on the Mississippi notes may also indicate that the plates were engraved in New York and then sent to the company’s tiny New Orleans branch office for printing, a practice that was not uncommon at the time.

The notes were issued between 1861 and 1863, with one-third scheduled for retirement in 1862, 1863, and 1864. However, the rather rich 10-percent interest rate led the state to call the notes early and suspend interest payments as of December 5, 1863.

Backed by Cotton

The Union blockade of southern ports prevented access to traditional northern printers early on, and the state’s next issues were artistically more humble lithographed notes. The earliest 1862 issues were uniquely backed by cotton stored by the state’s planters rather than specie or other hard assets. In 1862 $5 million of these so-called “Cotton Pledged” series notes (Figure 2) were issued in denominations of $1, $2.50, $3, $5, $10, $20, $50, and $100. 

State Security

This method of providing security soon proved to be cumbersome, and the “Cotton Pledged” notes were replaced with notes whose security was simply the faith and credit of the state. This third emission of “Faith of the State Pledged” notes (Figure 3) was fundable in 8-percent bonds and was issued in denominations of $5, $10, $20, and $50. Issuance continued until Jackson, the state capital, fell to Union forces on May 14, 1863, and possibly on a limited basis afterward. A total of $150,000 was stamped RE-ISSUED (Figure 4) and placed in circulation on March 3, 1865.

By mid-1863, the seat of government had been moved to Macon, Mississippi, about 125 miles northwest of Jackson, where it remained until the end of the war. It was from Macon that the state’s fourth issue of notes, the so-called “Change Note” series, was made in 1864 (Figure 5). The denomination lineup was limited to small values: 25-cent, 50-cent, $1, $2, and $3 notes. These notes were printed by J.T. Paterson & Co. at its Augusta, Georgia, facility that was focused on the production of Confederate States of America (CSA) postage stamps as well as state and local bank notes and scrip. The designs are relatively plain, typical of late war issues.

Final Series

Perhaps the most intriguing emission is the enigmatic final 1865 issue, made—or at least intended to be made—in the waning months of the war. The surviving notes identified as part of this issue were all printed by J.T. Paterson & Co. of Augusta, who had printed the small denomination “Change Note” series in May 1864. The known denominations from this last series are $20, $50 (Figure 6), and $100 (with evidence that a $10 was contemplated), which were probably viewed as complementing the smaller denomination “Change Note” issues that were presently in circulation. Add in the $150,000 in RE-ISSUED third series $5, $10, $20, and $50 notes mentioned earlier, and an entire range of denominations from 25 cents to $100 could have been cobbled together from the last three series of notes produced. The only denomination known to have been issued in the final year of the war was the $50, with virtually all dated April 1, 1865.

Based on certain assumptions, the most likely scenario went something like this in the early months of 1865. The state, anticipating the war to continue, ordered additional notes from Paterson to replace depleted stocks of older notes in higher denominations. It placed notes in circulation for what would turn out to be the last time in March and April 1865. The issue comprised primarily old RE-ISSUED $5, $10, $20, and $50 third-issue notes that were on hand, supplemented by “Change Note” small-denomination bills as needed. It is likely that either the new 1865 notes arrived too late or were deemed unnecessary, except for some of the new $50s that were placed in circulation around April 1. The war ended weeks later, making further issues unnecessary. 

Mississippi Artifacts

All the Mississippi state issues are available today, many at quite reasonable prices. Some of the first-issue American Bank Note Company-produced notes can be a bit expensive in top grades, and the few remaining unissued $20 and $100 notes from the 1865 issue also command higher prices due to their rarity, but all can be obtained with a little patience, particularly in circulated grades. 

The Mississippi state issues are historic reminders and artifacts of Southern ingenuity and flexibility in meeting financial needs during the Civil War.

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A version of this article appears in the July 2025 issue of The Numismatist (money.org)