Third Issue - Introduction
The Third issue of notes was authorized by the Act of August 19, 1861
and was not to exceed $100,000,000 "outstanding at any one time, including
the amount authorized under former acts." An additional $50,000,000
was authorized by the Act of December 24, 1861, and the Act of April 18,
1862 provided an additional $50,000,000 with $10,000,000 in reserve funds.
In all $210,000,000 in funds were authorized for this issue.
This issue is also notable in that it authorizes payment "six months
after the ratification of a treaty of peace" instead of two years as
had been the case in the first two issues. This optimism likely originated
from the Confederate victory at the first Battle of Bull Run on July 21,
1861.
The large size of this issue placed a heavier burden
on the South's low paper supply. There had always been difficulty in obtaining
enough, but this issue strained supply even more. Much paper was captured
or smuggled from the North, but even more smuggled paper came from England.
This English paper makes its first appearence in the third issue. English
paper can be identified often from the existence of watermarks on the bill.
Some of the most common watermarks are: CSA in block letters; CSA in block
letters with a wavy borderline; CSA in script letters; J Whatman 1862; Hodgkinson
& Co Wookey Hole Mill; FIVE; TEN.