Monday, February 25, 2013

Creating The Greenback

President Abraham Lincoln signed the “First Legal Tender Act” February 25th 1862, authorizing the issue of United States Notes for Legal Tender.

A private meeting, held between President Abraham Lincoln and Colonel Edmund Dick Taylor on January 16th 1862 led to the issuance of “greenbacks”.  Buffalo banker and Congressman Elbridge G Spaulding prepared a bill to speed its issue he introduced it to Congress in early February to permit the Unites States Treasury to issue $150 million in legal tender notes.  There was controversy in Congress over the bill being un-Constitutional, but Spaulding argued that the notes were a “necessary means of carrying into execution the powers granted in the Constitution 'to raise and support armies,' and 'to provide and maintain a navy.”  President Lincoln signed the First Legal Tender Act into law February 25th 1862 authorizing the issue of paper currency.

1 comment:

name789 said...

Insterestingly, you post an image of a demand note, issued in 1861.....

the bill (H.R. 240) was reported in the House on January 7th, a week before Lincoln spoke to his Dick