John Gault

John Gault was an American entrepreneur and inventor who created the encased postage stamp. Gault used these encased postage stamps as a means to solve a coin shortage during the Civil War as well as ultimately profit from their sale.

Encased postage stamp

In 1862, Gault and the American population were faced with a shortage of coins. Postage stamps were easily torn and damaged when constantly handled. Gault proposed a solution to this problem in August of that year when he patented his idea of the encased postage stamp. He advertised his invention in the local newspapers as “New Metallic Currency.” His ingenuity was simple and his invention was based on the familiar roundness of coins. As suggested by its name, the encased postage stamp consisted of a postage stamp encased, or sandwiched between two covers made out of brass. Gault constructed the original postage cases out of silver in order for them to more closely resemble real coins.

Profit motive

Gault was a savvy business man and saw two ways that he could profit off the implementation of these new “coins.” First, Gault sold his currency to businesses and stores with high demand for coins at 120% the face value of the stamp. He soon realized that the bare back covering of the currency provided space that could be used for advertising. Companies paid Gault a two-cent premium on top of the cost of the stamp in exchange for a customized case to the specifications of the companies advertising desires. One of Gault's largest business partners was J.C. Ayer who took advantage of Gault's advertising space during the preliminary months of the creation of the currency. Encased postage stamps created by Gault kept in mint condition can sell for upwards of 4000 dollars.