— SECTION I —Encased Postage Stamps as Emergency Money

By Brian Latonas

Encased Postage Stamps are regular postage stamps inserted into a small coin-size cases with atransparent front of mica or cellophane. Such stamps were circulated as legal tender during periods whencoins were scarce — usually as a result of war or territorial disputes. It is estimated that at least fifteencountries encased postage stamps to function as emergency money.

UNITED STATES — American Civil War (1862-1863)

In 1862, the US government reacted to a shortage of coins by passing a law that allowed postage stampsto be used as currency to pay off debts under five dollars. Stamps were accepted as having value acrossthe US because they were evidence of having paid for postage. However, because of their fragile nature,postage stamps were easily torn and damaged when constantly handled. John Gault— an American entrepreneur and inventor — proposed a solution to this problem when he patented his idea of the“encased postage stamp”. As suggested by its name, the encased postage stamp consisted of an encasedstamp sandwiched between two metallic covers. Gault cut a hole in the front cover, and this acted as aframe for the stamp. He placed a layer of mica between the stamp and the front cover, which allowed thestamp to be visible while maintaining its integrity. Gault used a button-making machine to press thepieces together and to fold the metal covering over the backing of the “coin”. Initially, Gault constructedthe cases out of silver to most closely resemble real coins; however, he soon switched to brass becausesilver-encased stamps were too expensive to manufacture and the case quickly lost its silver colouringthrough continuous handling. Most of the encased postage stamps were sold in denominations of 5 and10 cents. However, Gault produced his currency in all the other US postal values then in use: 1, 2, 3, 12,24, 30, and 90 cents.

Today, Gault’s encased postage stamps are rare. Production slowed as Gault began to lose business.People began to tear apart the encased stamps in order to retrieve the value of the stamp inside. Of the750,000 pieces that were sold (1862-1863), only 5,000 are thought to have survived. Encased postagestamps created by Gault, kept in mint condition, can sell for upwards of 4000 dollars. The stamps,themselves, are also scarce and costly.

Worldwide Encased Postage Stamps

Worldwide encased postage stamps are numerous. Because styles differ from those of the US, it is likelythat most of them developed independently of Gault, but they did so for similar reasons: that is, aprotective covering was needed for postage stamps that were pressed into use as currency in lieu ofhoarded coins.

ARGENTINA (1920)

Argentina used 1908 San Martin one centavo buff (Scott 145) and five centavoscarmine (Scott 149) with aluminum “advertisement” backs produced by La Mayordel Mundo and Farmacia in response to coin shortages of those particulardenominations. Examples are rare. Unlike US Gault issues, the holders for foreignencased postage stamps are generally large enough to hold the entire stamp withoutmore than minor corner folding, and with most of the stamp showing.

AUSTRIA (1919-1922)

In Austria, a good dozen merchants issued encased postage stamps with embossedmetal advertising backs. All were produced by the company Reklame-Geld, whoseown issue is very scarce. Various 1919-1922 stamps were used: 30 and 50 heller(Scott 211; 215) showing a man planting a tree; and, ½ to 500 kronen depicting wheat (Scott 250-277). The stamps were placed against a varied-coloured or foilbackground. A variety of materials were used: dull steel (zinc plated); bright steel(tin plated); copper-finished steel; celluloid backs; and, (very scarce) plastic backs.

BELGIUM (1919-1922)

Belgium encased 1919-1920 5c green stamps of King Albert (Scott 94) with aluminum backsand celluloid fronts. The encased postage stamps are rare, as only a few companies producedthem.

CZECHOSLOVAKIA (1920)

Czechoslovakia encased postage stamps in square metal and celluloid holders, which werelightweight and had advertisements. The encased postage stamps are rare. Twenty haleru red(Scott 68) and 30 haleru red violet (Scott 70), both featuring the 1920 “Freedom fromChains” design, are known to have been used.

DENMARK (1921)

Due to scarcity of small change in Southern Jutland after the union of NorthernSchieswig with Denmark (1920), the Postal Directorate General authorized twostamps (10 and 25 ore) to be used as emergency money. The stamps were,respectfully: Scott 156 (Kronborg Castle from the Reunification Set) issued 1920;and, Scott 107 (Christian X) issued 1918. Postreklamen was commissioned to

encase the stamps; the American Tobacco Company in Copenhagen paid for production with (at least) tendifferent advertisements on the reverse of the holders. The holders were fashioned from tin-plated steel inboth plain and painted varieties.

DENMARK (1941)

During WWII, the Nazis confiscated most copper coins to be melted down formilitary purposes. For this reason, companies created their own small change byencapsulating stamps in square celluloid holders. These holders were probably themost economical and practical of all encased postage stamps. Unlike encasedpostage stamps issued in 1921, all of the private issues (produced around 1941)were not obligated to be accepted as payment. The following stamps were used:1933 1 ore black (Scott 220); 1933 2 ore scarlet (Scott 221); 1938 5 ore rose (Scott224) and 1938 10 ore yellow-orange (Scott 228).

FRANCE (1919-1923)

Following WWI, as the shortage of coins became more acute, shopkeepers andcustomers in France began using postage stamps as small change. To give some form ofprotective cover, the stamps were initially placed in tiny sachets or envelopes(pochettes) made of translucent paper, silk or other suitable material. The pochetteswere often sealed with a small label (étiquette) which named the supplier, and often alsohad the face value of the enclosed stamp, or stamps, hand-written, or printed, on theoutside.

To give even greater protection to the stamps, Grands Magasin du Louvre, Au Printemps,Grands Magasin de la Samaritaine and others printed cardboard booklets, with theirname on the outside, into which they gummed or stapled strips or blocks of stamps —usually between four and twenty stamps to values between one and five francs. Thesebooklets (1920) were the forerunners to those with attractive advertisements on thecovers and stamp margins that flourished from 1925 onwards.

Also in 1920, pochettes and booklets were supplemented by privately-manufacturedmetal encasements known as jetons (timbres-jetons). Somewhat like John Gault inthe US, Edouard Bouchaud-Praceiq lodged his own patent and assigned the licenseand rights of production to Robert Binds Shedler of Saint-Denis who owned acompany specializing in the stamping and impressing of tin. Jetsons were fashionedout of aluminum or tin, either plain or painted, all with advertisements and anumeral indicating the value of the encased stamp. The typical encased stamps werethe same as those used in pochettes, and were from the 1906-1937 “Sower” issue:

5c green (Scott 159); 5c orange (Scott 160); 10c red (Scott 162); and 25c blue (Scott 168). Also encased(but scarce) is the 1903-1938 15c olive (Scott 139).

GERMANY (1919-1923)

The German issues are the most extensive of all encased postage stamps and were issued by severalhundred firms in various denominations. A few Bavarian stamps (Scott 238-275 overprinted “DeutchesReich”) were used, as well as stamps from the 1921 “Worker” series (Scott 144-149) and “Posthorn”series (Scott 150-152). Typically, German encasements have a coloured paper background, usually blank,

but sometimes with advertisements at the sides of the stamps, in addition to the normaladvertisements on the reverse. Materials include aluminum, bright tin-plated steel, brassfinish, coloured metal (blue or green), celluloid with metal rim, celluloid back withadvertisement or scenic photograph (scarce), cardboard back with celluloid front(scarce) and cardboard back with glassine front (also scarce). The most commondenominations are the 5 and 10 pfennigs from the 1900 “Germania” series and the 1921“Lozenges” series (respectfully, Scott 54, 68, 137 and 138).

GREECE (1920)

Over 100 varieties of Greek enclosed postage stamps were issued during thesmall coin shortage of the early 1920s. They rank among the rarest of foreignencased postage stamps and therefore, limited information is available aboutthem. Nevertheless, it is known that Greece 5 litre green (Scott 201) and 10 litrecarmine-rose (Scott 202) were encased.

ITALY — KINGDOM (1919)

Encased postage stamps of Italy are similar to those of Germany and France.Although German encased postage stamps are the most extensive, Italianencasements are the most diverse. Holders were manufactured out of aluminum orplastic by the firm Solari Milan. They were issued by companies such as Singer andPirelli, chocolate companies such as Talmone, banks such as Credit Biella andItalian Banca Agricola, and liquor producers such as Trinchieri Vermouth. Stampsencased for use in Italy were Leoni definitives (1906-1919) and Michetti definitives(1908-1927). Denominations ranged from 5 to 50 centesimi (Scott 94-105).

ITALY – REPUBLIC (1946)

The first encased postage stamp of the Republic was the 2-lire“Worker Tying Tree” stamp in dark claret-brown (Scott 470). Thestamp was encased in a conventional aluminum and cardboardholder with an advertisement for Cognac Sarti on the reverse. Somewere printed in white on a red background, and others in red on awhite background.

ITALY – REPUBLIC (1961)

Due to a worldwide shortage of silver, Banca Popolare Modena encased 500l stampsfeaturing Adam from the “Works of Michelangelo” (Scott 830) in rectangular translucentholders to address a shortage of 5-lire coins due to hoarding.

ITALY – REPUBLIC (1971-1985)

Beginning in the 1970s, there was another serious shortage of coins in Italy— particularly 50- and 100-lirecoins. The cause of the shortage was famously mythologised at the time, but the most probable reason was

that the Italian government abandoned plans for a new mint and hence, the old mint could not keep upwith demand. Whatever the exact reason for the shortage, venders resorted to giving items (candy, fruit,phone tokens, etc.) to customers as change. Vendors also began to issue their own coupons and cheques(miniassengi) in amounts of 50 to 350 lire. Banks also started issuing their own miniassengi that could becollected and then exchanged for larger bills.

Aside from miniassengi, many companies encased postage stamps in conventional aluminum/cardboarddisks with the typical advertisements on thereverse, and these also circulated as smallchange. The Merchants Association producedsimilar encasements using plastic disks in brightcolours with the city name printed on thereverse. In all cases, “Italia” definitives —showing the “La Siracusa” design — wereaffixed to the disks. Interestingly, these stamps

were inspired by silver drachmas of Syracuse dating back to the fifth century BCE and therefore, have adefinite association with coinage. (For a complete list of these postage stamps, see Coin on Stampscollection: Italy.) “Italia” definitives from three series appear to have been used: 1953-1954; 1955-1958;and, 1968-1976. Confirmed denominations used as emergency money are as follows: 5l slate (Scott 626;674; 998B); 10l orange (Scott 627; 676; 998D); 25l purple (Scott 630; 681; 998G); 50l olive (Scott 683;

998J); 90l red-brown (Scott 687; 998O); 100l brown (Scott 988P); and, 200l gray-blue(Scott 988U).

In addition to “Italia” definitives, a few companies used other stamps and materials:Electronia Appliances placed 1970 20l stamps (Scott 1009 featuring Galatea by Rafael)into translucent celluloid holders and used them as small change. IRA Autotrade S.P.A.similarly used 1974 50l stamps (Scott 1161featuring a fifteenth-century mural) intranslucent celluloid holders. Autotrade S.P.A SALT used 1975 100l stamps (Scott1211featuring the Nativity) and, like the aforementioned stamps, placed them intotranslucent celluloid holders to be used as emergency money. PAM Supermarket placedtwo 1973 50l stamps (Scott 1136 commemorating the 50th Anniversary of the GoldMedal of Valour) into single translucent celluloid holders to create a 100-lire coin

equivalent. Giac Cinima used 1975 100l stamps (Scott 1197 featuring the Emblem of United Legal Groupscommemorating the Centenary of Italian Legal Organizations) to address theongoing shortage of 100-lire coins. Navigation Lake Miggiore placed 1975 100lstamps (Scott 1186 from the Italian Resistance Movement Victory series) intotranslucent celluloid holders. Other companies may have issued similaremergency money; however, the above companies are confirmed to have usedpostage stamps other than the “Italia” definitives as a substitute for small change.

ITALIAN SOCIAL REPUBLIC (1943-1945)

Proclaimed on September 23, 1943, the Italian Social Republic (RSI) was a short-lived state in NorthernItaly headed by the fascist dictator, Benito Mussolini.

Initially, the RSI overprinted stamps from the Italian “Imperial” set (1929-1942) with the letters “G.N.R.”(Republican National Guard). On Jan 21, 1944, the RSI again used stamps from the “Imperial” setoverprinted with the fasces (an ancient Roman symbol of power) and/or the words: “Repubblica SocialeItaliana”. The fasces overprints were also applied to postage due, authorized delivery, special delivery andparcel post stamps. Beginning on June 5, 1944, the RSI issued a set of four definitive stamps featuring

various destroyed monuments, as well as a drummer design. Additional designs were introduced inAugust, 1944. In December 1944, a set of three stamps were issued to commemorate the 100th Anniversaryof the execution of the Bandiera brothers for their activities as members of Giovine Italia, a revolutionarysecret society. Although some of the aforementioned stamps continued to be used after the fall of theregime, they were replaced by stamps of the Kingdom of Italy.

Due to a shortage of coinage during WWII, RSI stamps wereaffixed to advertising or propaganda cards and used as smallchange. Use of the following stamps have been confirmed: 25cgreen, 30c brown and 50c purple overprints (Scott 1-3); 20ccrimson, 25c brown and 30c brown from the first 1944 definitiveset (Scott 18-20); and 10c brown from the second definitive set(Scott 23). In addition, several definitives of the Kingdom of Italywere used from the 1929-1942 set: Romulus and Remus 5c brown(Scott 213); Augustus Caesar 10c dark brown (Scott 215); Italia15c slate green (Scott 216); Julius Caesar 20c rose (Scott 217); and, Italia 35c deepblue (Scott 220). In addition, the Augustus Caesar 10c dark brown (Scott 215) was alsoaffixed to cardboard disks of bright blue, yellow green and red with “CreditoVaresino” printed on the reverse. Varesino is a municipality of the Province of Comoin the Italian region of Lombardy.

NEW CALEDONIA (1922)

New Caledonia — a French Colony — typically used postage stamps affixed tocardboard as a response to coin shortages (see Section II — Postage Stamp Money).However, an additional post-WWI issue was produced by the Banque L’Indo China(Indochina) encasing 25c and 50c “Landscape” stamps from the 1905-1928 series (Scott143 and 148) in aluminum holders (Pick 28-29).

NORWAY (1941)

For similar reasons as Denmark (above), following the Germanoccupation of Norway during WWII, Norway replaced the bronze 1-orecoin with a 1-ore encased postage stamp (Scott 74). Unlike Denmark’suse of square celluloid holders, Norway’s encasements were of threetypes: square metal, round aluminum and heavy paper with metal rims,all with the usual advertisements on the reverse.

SPAIN (1938-1939)

During the Spanish Civil War, the Republic — under an Order of the Ministry of Finance, dated February24, 1938 — printed small brown disks from cardboard with the Spanish crowned arms impressed on one

side. Banks distributed these disks to anyone who wished to have them. In this manner,each person or business could attach a current stamp to the reverse of the disk therebycreating the desired value (Pick 96-96T). Officially authorized for this use were the 5cand 25c postage stamps of 1931-1934 (Scott 528 and 534) and the 10c and 15c “EspecialMovil” revenue stamps. However, an Order of October 22, 1938 provided for thesubstitution of any 10c postage stamp for the 10c revenue stamp because of confusionrelated to the new 10c revenue stamp being of the same colour as the 15c stamp.However, because unauthorized stamps were also attached to the cardboard disks, many

varieties and values abound. Another issue, from Barcelona, shortly after the end of the Civil War, used1936-1939 Franco “El Cid” 5c, 10c and 15c stamps (Scott 641-44) placed in conventional encasementsmade of aluminum, with advertisements of various Barcelona firms on the reverse, and celluloid fronts(probably using unexposed film). All were issued to address the shortages of metal coins in postwar Spain.Spain also made available similar emergency money for its possessions in Africa: Morocco, Tangier andSpanish Sahara.

PORTUGAL (1917-1922)

With declaration of the republic (1910), Portugal introduced a new monetary systembased on the escudo of 100 centavos. With exception of the 10-centavo coin, lowerdenominations were issued only briefly. Because of high inflation following WWI,metal coins (already valued and scarce) disappeared out of circulation due tohoarding. Similar to the purpose of encased stamps used during the US Civil Warand elsewhere following WWI, Portugal encapsulated “Ceres” 1-, 2-, 5- and 10-centavo stamps (Scott 209; 210; 213; 214; 223; 224; 235) in metallic cases for use asemergency money. The encased stamps are not as well known as those of the same

period from other countries (Austria, Denmark, France, Germany and Italy). They are very scarce anddifficult to find.

PORTUGAL (1934-1945)

To fill the absence of 5-centavo coins (last minted in 1927), 5c stamps (Scott562 featuring the Roman Temple at Evora) were encapsulated beginning in1934 and used as emergency money until 1945.

UPPER SILESIA (1920)

Silesia is a region of Central Europe, now divided between Poland, the Czech Republic and Germany. The Polish portion consists mostly of the former Prussian provinces of Upper Silesia andLower Silesia, both of which were transferred to Polish administration at the PotsdamConference in 1945. The Polish portion also includes those parts of Upper Silesia that wereceded by Germany to Poland after WWI, along with part of the former Austrian principalityof Teschen. A second, much smaller, part of Silesia belonged to Czechoslovakia since 1918,and became part of the Czech Republic with the dissolution of Czechoslovakia in1993.

Upper Silesia issued their own stamps from 1920-1922. The country also produced a little-known squaretin-encased 10pf stamp with an advertisement for Stadgarten Conditorei (a confectionery).

References

References to be added soon.