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Article: Greenbacks
- Article from:
- Gale Encyclopedia of U.S. Economic History
CopyrightCOPYRIGHT 1999 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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GREENBACKS
Greenbacks were the paper money printed and issued by the U.S. government during the American Civil War (1861
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65). The financial demands of the war quickly depleted the nation's supply of specie (gold and silver). In response the government passed the Legal Tender Act of 1862, which suspended specie payments and provided for the issue of paper money. About $430 million in notes were issued. The notes were legal tender
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money that had to be accepted in payment of any debt. Because the bills were supported only by the government's promise to pay, it was somewhat derisively observed that the bills were backed only by the green ink they were printed with on one side. ...