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.
Indian Territory
During the Civil War, it was assumed by the Confederates that the Five Civilized Tribes (Cherokees, Chickasaws, Choctaws, Creeks, and Seminoles) of the Indian Territory were cemented allies. They had been moved from the South by the government in the 1830s and since had adapted to the ways of white men and even owned slaves themselves. The Confederacy even recognized the importance of having them help protect the western flank.
By early February of 1861, the Choctaw Nation passed a resolution that favored the southern states. It was then that Albert Pike, a lawyer that helped the Indians when it came to legal matters between them and the Federal Government in the past, was sent to travel to the Indian Territory to negotiate treaties. The treaties arranged were only partially successful as it was found that even though part of the Indians were pro-Southern, some were still very loyal to the North.
The Cherokee Nation is said to have issued currency in multiple low denominations in June of 1862. The notes read “Notes of the Confederate States, whichever the sum of $20, $50 or $100 is presented at the Office of the Treasurer, Tahlequah”. Tahlequah was the capital of Cherokee. Those notes were reminiscent of the ones delivered to the Nation by Albert Pike earlier in the year. All of similar design, the Cherokee Nation had Confederate currency notes in the form of 25 cents, 50 cents, $1, $2, and $5. The Choctaw Nation had notes with denominations of 50 cents, $1, $2.50, and $5. All the notes, regardless of Indian Tribe, are very, very rare.
There are some notes from the Indian Nations that had written amounts. A lot of the notes were printed on colored paper and bore endorsements reissued under an Act of October 17th, 1865, that came with an interest rate of 5%. The Federal Government ended up penalizing the Indians that supported the Confederacy in 1866.
Source: Confederate States Paper Money: Civil War Currency From the South (12th Edition) by George S. Cuhaj & William Brandimore