Financial History 100th Edition Double Issue (Spring/Summer 2011) | Page 45

appeared in response to the severe shortage of precious metals that was a persistent problem of colonial life. In 1690, colonial Massachusetts began printing “bills of credit” to pay its expenses from a war with French colonists. The crude quality of these notes made forging them fairly easy. Soon other colonies followed suit with their own notes. After the Revolution, paper money became even more pervasive. Although the Constitution forbade individual states from producing currency, the states evaded this restriction by chartering private banks to print it for them. As the number of these banks increased, so did the quantity and variety of their bills. In 1800, there were 29 banks in the United States; 16 years later, the number had soared to 250. The nation’s mushrooming financial sector benefited counterfeiters enormously. The dizzying diversity of American paper currency gave them an array of bills to forge. And with too many kinds of paper changing hands for the average American to be familiar with all of it, it became even easier to pass off a fake note undetected. By the 1850s, there were more than 10,000 different kinds of notes circulating in the US. The arrival of the Civil War created a new kind of counterfeiter: someone who could forge currency without breaking the law. This paradox of a profession was perfect for Upham, whose own personality contained more conflicts and contradictions than would have been apparent to those who knew him only as a middle-aged shopkeeper. Only a few months after he started printing his “facsimiles,” his name had become notorious in the Confederate capital of Richmond. The $5 bills he copied from the Inquirer surfaced there as early as April 1862, and caused a sensation at the Confederate Treasury Department. A Treasury officer persuaded the editors of the Richmond Daily Dispatch, the most popular of the town’s papers, to spread the word about the new counterfeits. “This note is well calculated to deceive, and in nearly every particular is a fac-simile of the original,” they wrote, condemning the forgeries as “Yankee scoundrelism.” As more of Upham’s bills poured in, their outrage grew. Upham provoked such vitriol because he enabled people to undermine the Confederacy’s authority. The South was prepared to send its citizens to the most gruesome deaths imaginable to secure its sovereignty. Its paper notes were symbols of that sovereignty, rectangles emblazoned with images that reminded people from tiny towns in Georgia or North Carolina that they were part of a proud, powerful country. “The attempt to pass a counterfeit Confederate note is certainly an act of hostility against our government,” said the Daily Richmond Examiner. The fact that Upham challenged the Confederacy so openly — that he was brazen enough to put his name and address on his counterfeits — made Southerners even angrier. At 403 Chestnut Street in Philadelphia, a shopkeeper was selling stacks of fake Southern cash, and the Confederates couldn’t do anything about it. While Upham owed his success partly to the quality of his imitations, what really distinguished him was his skill as a salesman. Thanks to the Civil War, he could treat counterfeiting like a legitimate business. While steadily enlarging his catalog of Confederate currency, Upham attracted new customers by placing full-page advertisements in various Northern publications. As his business ev