The secession of the southern states in the early 1860s led to the formation of the Confederacy. After South Carolina seceded on December 20, 1860, seven states followed although it was thought that there would be double that initially. Secession was a delegate decision state by state and after the election and fall of Fort Sumter in April of 1861, some states decided against it. However, once the Confederate States were established, currency circulated heavily throughout the South during the American Civil War. But as we have come to learn throughout this blog series, that currency still was not enough in the South. This led to the enactment of individual states issuing their own currency.
Alabama
The state of Alabama became the fourth state to leave the Union after 61 delegates voted for secession and 39 against in Montgomery on January 11, 1861. The state encountered a great divide between those Union and Secession parties during President Lincoln’s election in 1860. Alabama became a centric force for the Confederacy until Virginia seceded in April. However, Alabama did not start issuing its own currency notes until 1863. All issues came from the capital of Montgomery and would have a number of denominations from Five Cents all the way to $100 notes.
Arkansas
A slave state with a quarter of its 435,000 population comprised of slaves in 1860, Arkansas was opposed to the idea of seceding from the Union. However, wealthy plantation owners made up most of the political power in the state, resulting in their secession in May of 1861 as the ninth state to join the Confederacy. Uniquely, the Battle of Pea Ridge from March 7-8 in 1862 handed the Union a large portion of the southern state. Despite a small portion of the state of Arkansas being in Confederate control during the duration of the Civil War, it had one of the most comprehensive currency collections. Minor varieties in addition to different color papers and inscriptions led to this fact. From $1 denominations to written denominations, Arkansas has one of the most complicated series of notes that came from the Confederate States.
Source: Confederate States Paper Money: Civil War Currency From the South (12th Edition) by George S. Cuhaj & William Brandimore