Political Problems of American Development

Cover Political Problems of American Development
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It was a vast relief to the country to have the note- issuing function transferred to the supervision and control of the national government. Unfortunately, the states- men of the Civil War period, in their financial exigency, did not see how to keep the country's business upon its established standards of the gold and silver dollar. Taxes were increased in all sorts of ways, and bonds were sold as rapidly as possible; but the demands of war expenditure remained unsatisfied and the policy of is
...suing non-interest- bearing government notes for purposes of circulation - the so-called " paper money" or " Greenbacks" of the war period was entered upon as a practical method of ob- taining necessary war supplies.
As I have already said, the value for practical pur- poses of such government notes depends upon the pre- vailing confidence of the business community in the prac- tical ability of the government to protect and redeem its issues at their face value. The government made its green- backs receivable for taxes and declared them a legal tender for the payment of ordinary debts.


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