# How Did Money Work Circa 1870 (USA) **URL:** \ **Category:** Factual Questions\ **Created:** [August 25, 2016, 3:18pm UTC](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913 "2016-08-25T15:18:01Z")\ **Posts on this page:** 5\ **Page:** 2
**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\ **Post date:** [August 29, 2016, 6:04pm UTC](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913/21 "2016-08-29T18:04:12Z")
> [@Whiskey\_Dickens](#): > > I don’t think stamps are a fiat currency. Part of the definition of a fiat currency is that it’s inconvertible. You can get a letter delivered with a stamp, it has an inherent value. Non-denominated “forever” stamps have an inherent value, because you can be assured that whatever future rate hikes occur, they will always have the value of a letter being delivered. Stamps with a dollar/cent denomination on them, on the other hand, don’t have an inherent value because you can’t be assured that their face value will buy a delivery in the future. They have no more inherent value than the dollar/cent fiat currency in which they’re denominated. ---
**Author:** ![installLSC](https://avatars.discourse-cdn.com/v4/letter/i/54ee81/32.png) [@installLSC](https://boards.straightdope.com/u/installLSC)\ **Post date:** [August 29, 2016, 6:13pm UTC](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913/22 "2016-08-29T18:13:37Z")
I don’t know about domestic Confederate counterfeiters, but [heavy northern counterfeiting of Confederate money badly damaged the Southern economy.](http://www.annmarieackermann.com/paper-bullets-counterfeit-confederate-currency-civil-war/) Note in the story, the counterfeits were often better made than the real thing. ---
**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\ **Post date:** [August 29, 2016, 6:38pm UTC](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913/23 "2016-08-29T18:38:36Z")
> [@Schnitte](#): > > Non-denominated “forever” stamps have an inherent value, because you can be assured that whatever future rate hikes occur, they will always have the value of a letter being delivered. Stamps with a dollar/cent denomination on them, on the other hand, don’t have an inherent value because you can’t be assured that their face value will buy a delivery in the future. They have no more inherent value than the dollar/cent fiat currency in which they’re denominated. They can still be used. You just might have to add a few cents of additional stamps. So yes, they have a value. ---
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [August 31, 2016, 5:22pm UTC](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913/24 "2016-08-31T17:22:45Z")
> [@mhendo](#): > > Here is an [1840 advertisement](https://books.google.com/books?id=tp7VAAAAMAAJ&dq=counterfeit%20detector&pg=PA163#v=onepage&q&f=false) for the sort of counterfeit detection guide he mentions. I like that it lists “Broken Banks and Fraudulent Institutions.” Two ways for a bank note to be worthless without being counterfeit. ---
**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\ **Post date:** [August 31, 2016, 5:44pm UTC](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913/25 "2016-08-31T17:44:47Z")
> [@md2000](#): > > They can still be used. You just might have to add a few cents of additional stamps. So yes, they have a value. I’m not saying they don’t have any value at all; I’m just saying the value is no more intrinsic than that of the currency in which they’re denominated. Take the rate increase from 46 to 49 cents. Sure, you could still use an old 46 cents stamp, throw in another three cents, and you’d get delivery; but the same was true if you had 46 cents in cash - you could throw in another three cents and buy the delivery of a letter. If U.S. currency is fiat money, then so is a stamp denominated in U.S. currency. [Previous page](https://boards.straightdope.com/t/how-did-money-work-circa-1870-usa/763913.md?page=1)