Seventh Issue - Introduction
The Act of February 17, 1864 authorized a new issue of notes to be printed
in unlimited quantities (approximately one billion dollars). Notes of earlier
issues were to be retired by being converted into bonds or taxed. This did
little to alleviate the existence of these earlier notes. By this time,
however, the Confederate dollar was not of high value.
A problem with the currency reduction provisions of this act was the scarcity of printed bonds. The bonds were not immediately available, and they were usually not sufficient after their introduction. Section 2 of this act provided for the existence of Certificates of Deposit to supplement the bonds. These could be exchanged for bonds at a later date or be used to pay taxes. These bonds read "This will certify that ______ has paid in at this office ______ Dollars, for which amount Registered Bonds, of the Confederate States of America, bearing interest from this date, at the rate of four per cent per annum, will be issued to him, under the 'Act to reduce the currency, and authorize, a new issue of notes and bonds,' approved February 17, 1864, upon surrender of this Certificate at this office."
Notes from $1 to $500 have a reddish-pink web background on the obverse while the 50¢, $1, $2 and $500 notes have plain reverses. Other notes have blue ornate reverses.
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