jan 1, 1865 - Financing the War: Greenbacks (NAT)(POL)

Description:

Greenbacks were a form of paper money used by the union during the civil war because of the vast economic pressure and stress that this war was causing . It was an experiment on the economy by the US Treasury. Approximately half a billion dollars in these greenbacks would be printed very quickly causing inflation throughout the United States. Because of this, the national banking system was enacted in 1863 to regulate expenditure by the government as well as the printing and destroying of paper money in order to keep the value of the money stable.

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