But at the onset of the American Civil War, Lincoln's postmaster general, Montgomery Blair faced a federal postal system regionally disabled by seceding states and disloyal postmasters. To prevent possible fraud potentially amounting to $270,000 in postage and stamped envelopes held in the South, the existing stamps were withdrawn and demonetized, and a new series of stamps was hurriedly issued. With the previous contract ending June 10, 1861, the Post Office Department signed a contract with the National Bank Note Company of New York City. Loyal postmasters in seceded states returned stamps to the Department. The new stamps were in use across the Union by mid-August 1861 with the same denominations and honoring the same people as the previous issue, but all of the designs had changed."1861 Issues" Smithsonian National Postal Museum. viewed January 31, 2014.
