February 25, 1863: National Bank Act

Greenback

Originally called the National Legal Currency Act, the National Bank Act was signed into law on February 25, 1863.  The Act created National Banks that could issue notes printed by the United States Treasury that would serve as currency, the famous Greenbacks.  Precisely one year before the Congress had authorized the treasury to issue paper currency in an amount not to exceed 150 million dollars.  Although the move to a fiat currency not backed in gold was widely unpopular around the country, the nickname of the notes, Greenbacks, coming from people complaining that the notes were backed only by the green ink used to print the backs of the notes, when the economic house did not fall in from the issuance of the Greenbacks in 1862, Congress placed no limits on the issuance of the currency in February of 1863. (more…)

Published in: on February 25, 2019 at 5:30 am  Comments Off on February 25, 1863: National Bank Act  
Tags: , , , , , , , , ,