Small Change, Big Value at Heritage Auction's Fractional Currency and Encased Postage Showcase Auction

During the Civil War, Americans faced shortages of basic necessities, often with little or no food and limited access to clothing and medical supplies. During this difficult time, coinage was also in short supply, and innovative paper-based methods were developed to address this currency problem. Among the results were fractional bills of cent denominations and encased postage that utilized the value of postage stamps while also protecting the fragile material with brass and mica casing. Although better times came and made these forms of currency obsolete, they now hold a new status as artifacts of wartime currency and are prized by collectors.

At Heritage Auctions' July 20 Fractional Currency and Encased Postage Showcase Auction, the value of this once-small change has proven to be worth much more than original values, as the event earned over $149,000 between the two specialties.

Fr. 1268 15¢ fourth issue. All images are are courtesy of Heritage Auctions.

The fractional currency at the auction consisted of a selection of multiple issues that varied in design and type. An important detail for fractional currency is margins, as they can reveal the printing process, condition, and series type to the eye. Heritage offered several pieces that fit within the lines that collectors wanted. Some were well-spaced, like a Friedberg 1268 15¢ fourth issue (PCGS Banknote Choice Unc 64 PPQ) that sold for $2,160.

Others weren't perfect, but because of these imperfections, they were highly sought after by bidders. Sitting between a vast expanse of margin space were the faces of an uncut Milton 25¢ second issue proof set (PMG Choice Very Fine 35). Purchased for $2,880, this pair tells a vivid story through its mistakes: a 25¢ overprint on one of the notes and an ink shade difference between the pairs. Additionally, neither note features a bronze oval overprint, and annotations from the printer sat within the extra-wide margins.

Milton 25¢ second issue uncut face proof.

Although attracting a different category of collectors than the fractional currency, the encased postage at the auction was equally attractive to bidders. For sale were pieces from the Larry and Patricia Briggs Encased Postage Collection, which, according to Heritage, is noted for its diverse offering of merchant issuers and advertising designs.

An interesting example from the Briggs collection was a 1¢ Joseph L. Bates "Fancygoods" (Choice About New) encased postage. This high-grade example from a Boston merchant features the word "fancy goods" as a single word, "FANCYGOODS," on its silvered advertising side. Aside from that, imperfections were challenging to find on this piece, as the mica and silvering have remained in good condition, with only a slight wrinkle at the center of a blue and white Benjamin Franklin stamp. Despite being originally worth a cent, it now holds a value of $780.