Encased postage

Encased postage was an idea to provide small change during periods of coin shortages and/or hoarding.

Low value stamps would be used for making change but these would quickly become dirty and worn out. Small envelopes of stamps could also be used. Private tokens (with limited acceptance), credit notes, scrip, etc. were also used.

In the US in early 1862 after the outbreak of the Civil War, hoarders reduced the supply of circulating coins significantly. John Gault patented the process of enclosing coins in coinlike brass holders, covered in mica sheeting. To offset costs, advertising was embossed on the back for various businesses. Production ended in August 1862 when the US government issued postage currency, banknotes in small denominations with images of stamps.

The idea was revived by private companies in Austria, Denmark, France, Germany and Italy during post-World War I coin shortages, with coin faces now covered in celluloid. Some versions were all-celluloid round containers. Once again, advertising on their backs were used to pay for production. Encased postage also appeared during the Spanish Civil War c.1936. 

