This is a specimen, printed after 1863. The design was never used. Congress objected to its use of living persons (who might someday be President). Only the obverse was printed and signed.

Fractional currency was issued between 1862 and 1874 to attempt to put an end to the practice of using postage stamps for small change. Coinage was scarce and valuable; the practice of using private copper tokens in lieu of cents, and stamps in lieu of silver, was widespread. The post office disliked selling stamps for that use. After 1862 Congress and the Treasury elected to issue paper notes in amounts ranging from five cents to fifty cents.

The first issue was, in fact, very stamp-like, using engravings adapted from postage stamps. They were printed in perforated sheets, like stamps, so that they could be easily separated. However, the perforation presses failed often under the load so in subsequent issues they eliminated perfs but added line guides for scissors. Colors and intricate engraving were added later to inhibit counterfeiting.

While currency issues do not fall under the "numismatics" bailiwick, I know the Pbase crowd is a generous and forgiving group of fine people who will cut me some slack.