When the Civil War started, there were two types of money in circulation in the North: The largest part was "hard" money - silver and gold coins of the United States Government; the rest was paper money issued by prominent state banks. As the war progressed, more and more hard money disappeared as people began to hoard coins.
In 1862, the U. S. Government began issuing "Greenbacks" (as Federal currency became called) to supplement the states' paper money. Greenbacks were soon in widespread use, amounting to more than half of the currency in circulation. Fractional currency ("paper coin") also became prominently used.
The Federal government passed strict banking laws in 1863: these laws along with heavy taxes soon caused most of the paper money of the private banks to disappear. The laws did not become effective in the South until after the Civil War was over in 1865
The reproductions in this set include antiqued parchment reproductions of original banknotes - they even feel old! This set includes:
$1 Pennsylvania 1865, Bank of Montgomery County
$1 Illinois 1861, Bank of Quincy
$1.50 Washington, D.C., 1862, Farmers & Merchants Bank
$1 New York 1862, Merchants Bank
$2 Maine 1861, Sanford Bank
$1 Nebraska 1863, Bank of De Soto
This is a wonderful way to study history and to preserve the knowledge of one of the most horrible periods in American history.