The Story of Money: 13--The Civil War Era

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
$1 Confederate note, 1864
$10 Confederate note, 1861
$10 Confederate note, 1861
$500 Confederate note, 1864
$500 Confederate note, 1864
United States "legal tender" note, 1862
United States note, 1862: A “legal tender note”
$5 "greenback" demand note, 1861
$5 demand note, 1861: A “greenback,” front
$5 "greenback" demand note, 1861
$5 demand note, 1861: A “greenback,” back
 
The Union government established national banks
$1 First National Bank of Chelsea, Vermont, not
$1 note of First National Bank of Chelsea, Vermont
$20 Lowery National Bank of Altanta note
$20 note of Lowry National Bank of Atlanta
$20 note of Andalusia National Bank, Andalusia, Alabam
$20 note of Andalusia National Bank, Andalusia, Alabama
 
The use of deposit money got an unintended boost
deposit money receipt
Receipt
check
Check
 
 
Earning interest made these notes more acceptable Stamps as small change
compound-interest-bearing $10 Treasury note from 1864
Compound-interest-bearing $10 Treasury note, 1864
interest-bearing $10 Treasury note from 1864
Interest-bearing $10 Treasury note, 1864
encased postage stamp used as small change
Encased postage stamp
 
Paper money filled the gap
$0.03 fractional note
3¢ fractional note
$0.15 fractional note
15¢ fractional note
$0.05 fractional note
5¢ fractional note
$0.25 fractional note
25¢ fractional note
$0.50 postage note
50¢ postage note
$0.10 postage note
10¢ postage note