In addition to the bills ranging in denomination from one dollar to one thousand, the government brought into distribution what was called "postal currency." I landed in New York in August, 1862, having returned from a University in Germany for the purpose of enlisting in the army. I was amused to see my father make payment in the restaurant for my first lunch in postage stamps. He picked the requisite number, or the number that he believed would be requisite, from a ball of stamps which had, under the influence of the summer heat, stuck together so closely as to be very difficult to handle. Many of the stamps were in fact practically destroyed and were unavailable. Some question arose between the restaurant keeper and my father as to the availability of one or two of the stamps that had been handed over. My father explained to me that immediately after the outbreak of the War, specie, including even the nickels and copper pennies, had disappeared from circulation, and the people had been utilising for the small change necessary for current operations the postage stamps, a use which, in connection with the large percentage of destruction, was profitable to the government, but extravagant for the community. A little later, the postal department was considerate enough to bring into print a series of postage stamps without any gum on the back. These could, of course, be handled more easily, but were still seriously perishable. Towards the close of the year, the Treasury department printed from artistically engraved plates a baby currency in notes of about two and a half inches long by one and a half inches wide. The denominations comprised ten cents, fifteen cents, twenty-five cents, fifty cents, and seventy-five cents. The fifteen cents and the seventy-five cents were not much called for, and were probably not printed more than once. They would now be scarce as curiosities. The postal currency was well printed on substantial paper, but in connection with the large requirement for handling that is always placed upon small currency, these little paper notes became very dirty and were easily used up. The government must have made a large profit from the percentage that was destroyed. The necessary effect of this distribution of government "I.O.U.'s," based not upon any redemption fund of gold but merely upon the general credit of the government, was to appreciate the value of gold. In June, 1863, just before the battle of Gettysburg, the depreciation of this paper currency, which represented of course the appreciation of gold, was in the ratio of 100 to 290. It happened that the number 290, which marked the highest price reached by gold during the War, was the number that had been given in Laird's ship-yard (on the Mersey) to the Confederate cruiser _Alabama_.