Section 13: The Civil War era Previous Section | Main Menu | Next Section
Both Union and Confederate governments issued paper money to fund their war efforts, much like the Continental Congress had done in 1775. As before, issuing too much paper money caused inflation.
Union and Confederate governments both issued notes

$1 Confederate note, 1864

$10 Confederate note, 1861

$500 Confederate note, 1864

United States note, 1862: A “legal tender note”

$5 demand note, 1861: A “greenback,” front

$5 demand note, 1861: A “greenback,” back
The Union government established national banks

$1 note of First National Bank of Chelsea, Vermont

$20 note of Lowry National Bank of Atlanta

$20 note of Andalusia National Bank, Andalusia, Alabama
The use of deposit money got an unintended boost


Earning interest made these notes more acceptable Stamps as small change

Compound-interest-bearing $10 Treasury note, 1864

Interest-bearing $10 Treasury note, 1864

Encased postage stamp
Paper money filled the gap

3¢ fractional note

15¢ fractional note

5¢ fractional note

25¢ fractional note

50¢ postage note

10¢ postage note