Greenbacks

Congress authorized the first printing of paper money on July 17, 1861. These bills were quickly called greenbacks, because the backside was printed in green ink.. There had been other temporary paper money in the past, most to serve a special need, but this was the first permanent paper money to be used for legal tender.

The paper money came about because of the Civil War. Within a short period of time leaders began to see they'd underestimated the cost of the war.  When President Lincoln sought loans from banks, mainly ones in New York, they wanted to charge  24-36 % interest, which he found unacceptable. He charged Secretary of Treasury, Salmon P. Chase with finding another way.

This money's use evolved over the next months. The value of the greenbacks also fluctuated At it's low, it took 258 dollars in greenbacks to equal 100 in gold, but the victory at Gettysburg caused it to rally and be worth 131 dollars to 100 in gold. The idea of paper money had come to stay.

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