Join Yahoo Answers and get 100 points today. The value of the greenbacks, which were printed with green ink on one side, fluctuated with the war's progress. By 1867, the wartime economic boom was over. Greenback is a synonym of money. But though the decline was substantial, it was nothing like the collapse of the Continental dollar. What do the greenbacks and the soft/hard money debate of the late 1870s have to do with the Panic of 1873? But it is a congressional responsibility to maintain gold and silver as a legal tender.” -Dr. Ron Paul. Greenbacks | Paper Money with a Promise to Pay, http://www.infoplease.com/encyclopedia/history/greenback.html, Colonial Scrip | Paper Money backed by Land, Hillary Clinton Raped MK Ultra Mind Control Slave Cathy O'Brien, Operation Dark Room: Norwegian Authorities Crack International Pedophile Ring, Superiority vs Supremacy? Hi, In my US history class we're learning about the Gilded Age (aka 1870's to the 1900's). By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. Hard Money vs. Soft Money: An Overview . Hard money vs private money loans is also good when you compare them to traditional loans like bank loans. FBI Had Possession of Biden-Burisma Wire Transfers—Why Didn’t They Do Anything About it? As a way to finance the Civil War the government began printing legal tender notes that were not backed by gold or silver, this caused an inflationary impact on the Northern economy. For an even deeper dive on this greenback vs gold dollar topic, the following video will give you further details on this critical matter which arguably helped usher in the founding of the private Federal Reserve central bank by 1913. A unit of American currency issued during the Civil War by the Treasury Department. ( Log Out /  [3] Within a few months it was clear that the costs of the war would run far beyond the government's limited income from tariffs and excises. Change ). National governments had in the past issued paper money and made it legal tender, but usually with at least the pretense that the notes would be redeemable for specie at some time. A long term gold price chart in US dollar terms can tell you as much. See W. C. Mitchell, A History of the Greenbacks (1903, repr. Such notes had value only if the bank could be counted on to redeem them. Change ), You are commenting using your Google account. It was indeed the first time the then restricted democratic republic of the United States had officially issued a full fiat currency legal tender note. 1 decade ago. ( Log Out /  They were not legal tender (before March 1862), but like Treasury Notes could be used to pay customs duties. The later United States Notes could not be used to pay customs duties or interest on the public debt, only gold and Demand Notes could be used for those. gold vs dollar). Congress provided in 1878 that the greenbacks then outstanding ($346,681,000) remain a permanent part of the nation’s currency. The Greenback's low point came in July of that year: 258 greenbacks equal to 100 gold. Lv 5. But yet one in which gold price speculators could have traded gold at nearly 8Xs its typical $20.67 oz price for over a century’s time spanning well before and after the Civil War era. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. Gold was more available on the West Coast and merchants in those states did not want to accept greenbacks (U.S. Notes) at face value. In July 1861, Congress authorized $50,000,000 in Demand Notes. By spring of 1863 the greenback declined further, to 152 against 100 dollars in gold. gold vs dollar). Text is available under the Creative Commons Attribution/Share-Alike License; additional terms may apply. The Columbia Electronic Encyclopedia, 6th ed. demand notes were usable in paying various taxes at the time, customs duties, etc.).

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