50 Cents 'Fractional Currency' - 3rd issue

Third Issue Fractional Currency emerged from a genuine emergency: the hoarding of coins — silver especially — that followed the outbreak of the Civil War left ordinary commerce paralyzed. Small transactions simply could not be completed. The earlier First Issue notes had been printed on ordinary postage stamp paper with gum on the reverse, an embarrassing improvisation that the Treasury moved quickly to correct.

The Third Issue introduced the colored fiber paper and surcharge overprints specifically to defeat increasingly sophisticated counterfeiters. Fr. 1331 carries a red reverse surcharge, one of several surcharge variants in the series — distinguishing them requires attention to both face and back.