civil action by all initially expected to close by Christmas 1861, is now to confirm his third year. The Union was not prepared for action in terms of personnel, equipment and ammunition. To catch up and then continue financing during the war would need money -. A large part of
When President Lincoln went shopping for a loan, while in England, the grant made excess associated tag – 24% to 36% color. Knowing that eventually ruin the bucolic, Sir.Lincoln declined the offer and instead asked his Treasury Chase Slamon P to print resources.
The law of 17 July 1861 authorized the Secretary Chase to raise funds through the issuance of $ 50 Cardinal government bonds, payable to raise connected application. In December, with clearly is not the end of the war in sight, the national government has continued to repurchase these notes currency.
The beginning of 1862 found mounting expenditure of the Union and the government to fight to the escalation of the war were used to finanzieren.US demand notes payable, inter alia, Union soldiers were sunk, and the value of the notes began 16th January 1862 détériorer.Le, in a private meeting with President Lincoln, Edmund Dick Taylor, Illinois Democrat, proposed the provision of securities and interest-free and on the best paper bank.
Congress and Bison dealer Elbridge G Spaulding prepared a draft law on the decree Free Banking in New Dynasty basiert.Der knowledge that it will take several months to pass Congress, Spaulding introduced another bill to allow the U.S. Treasury to $ 150 million in spending as legal tender. Spaulding argues that “mouth in front of us a measure of action, a measure of necessity and not of choix.Ce are extraordinary times and extraordinary measures must be resorted to in order to save within our government, and the preservation of our nationality. “
Despite strong opposition, President Lincoln signed the first proclamation of legal tender call 25 February 1862, which authorized the issuance of United States notes that legal or paper called change soon “greenbacks” for the color of the ink used to print them.
The Legal Tender initial Feat limits the issuance of U.S. Treasury bill to 150 million.Legal prestige ensured that lenders notes despite the certainty that they are not supported by gold, bank deposits or reserves of the government, and was not sharp. Take
At the time, the action has a cost of about $ 1 million per year. It costs very soon about 2.5 million per unit time. The limit of $ 150 Cardinal was reached, but the war continues. When the people in the field of payment of transport home valuable for those who asked Mr. Lincoln to the Senate and the House to allow him to pay the soldiers.
President Lincoln sent the following letter to the Senate and House of Representatives everything for your interest in a single currency, which is used to pay for all transactions back to.
For the Senate and House of Representatives:
, I signed the joint resolution for immediate payment of the Army and Navy of the United States, by the House of Representatives on 14 adopted to ensure and. by the Senate to 15 seconds
The resolution is a gross combined authority, an amount, but in the current situation, one way to determine the Secretary of the Treasury, an additional $ 100 million in the United States exhibit that is a lot of money for the Payment of the Army and Navy needs.
My permission is given in the row to be granted any system for the timely fulfillment of all arrears of salary payable to our soldiers and sailors.
Spell gives his consent, but I think it is my duty to express my sincere regret that it was deemed necessary to allow for a large additional issue of United States notes, when traffic and banks have also been to revoke if the release is to increase the prices on real values, thereby reducing the cost of living in the breach of employment? PIECE and the cost of care, the breach of the whole country.
It seems extremely strict non-stop notes of the United States problems exposed lack of control over issues botanist and without adequate conditions for raising funds through borrowing and the questions are then supported to be limited by, must soon have catastrophic consequences . And this question seems to me so important that I owe it to myself to take advantage of this opportunity to provide the special attention of Congress it.
that Congress has the power to regulate the currency of the country simply does not admit of doubt, and carefully examined in order to prevent the deterioration of the currency, reasonable taxation peak hours or is otherwise required, as this seems clair.Indépendamment general consideration, it would be unfair to the race in general exempt botanist to enjoy the special view traffic from their fair share of the public burdens.
To raise money in the form of loans more easily and at lower cost, it is absolutely necessary to all assistance possible to give public recognition.For this purpose, a uniform change, taxes, subscriptions to loans, and all other public charges usual all private contributions may be granted as cured, almost, but absolutely necessary. Such a cent, the associations organized under a general behavior of the Congress be provided, as in my message at the opening of this meeting vorgeschlagen.Getting this traffic through the commitment of States cohesive bonds, as proposed, could further facilitate loans through increased presence and cause a need for the future, such as bonds.
on the actual financial difficulties of the government and most secure future embarrassment if the necessary funds for relief is not granted, I guess I should not do my duty by a simple process my approval of the basis in the joint resolution, can provides relief by the circulation in need, my earnest desire that measures such substances express how I keep just mentioned, acquire the sanction early Congress.
By these measures, in my opinion, most certainly will pay country, not just in the army and navy, but to all honest creditors of the government and the satisfactory completion of all future demand for Treasury.
17 January. 1863.