US History Greenbacks Quiz

Greenbacks

• Greenbacks were non-interest bearing Treasury notes issued by the U.S. government during the Civil War.
• Authorized issuance: $150 million initially, followed by two additional issues in 1862 and 1863, and $415 million in 1864.
• These notes doubled the U.S. money supply, functioning as fiat money for all debts except customs, duties, and national debt interest.
• Not redeemable for specie, they provided a legal tender option for government debt payments and bond purchases.

Seignorage and Its Effects

• Seignorage during the Civil War referred to the inflation tax resulting from excessive government money printing.
• The government printed money to finance war efforts, leading to a rapid decline in money value and purchasing power.

Union vs. Confederate Note Issuances

• The Union financed 74% of its expenditures through the sale of interest-bearing bonds, maintaining value and stability.
• The Confederacy issued notes without legal tender status, resulting in their rapid devaluation to 1/1000 of their original gold value by war's end.
• The South experienced hyperinflation, accumulating $2 billion in debt by the war's conclusion, severely impacting note holders and debt holders.
• The Union did not redeem Confederate debts, rendering Confederate bonds and notes worthless post-war, a contrast to Union financial management.

Test your knowledge about Greenbacks, the non-interest bearing Treasury notes issued during the Civil War era. This quiz covers key facts, figures, and implications of the Greenbacks on the economy. Challenge yourself to understand their role in American financial history!