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Before the Civil War, the only money issued by the United States was gold and silver coins and only such coins ("specie") were legal tender and so payment in that form had to be accepted.
Paper currency in the form of banknotes was issued by privately-owned banks, the notes being redeemable for species at the bank's office and not legal tender. Such notes had value only if the bank could be counted on to redeem them. If a bank failed, its notes became worthless.
When President Abraham Lincoln assumed office, he understood the importance of money for the war effort. With that in mind, Lincoln appointed Salmon P. Chase as Secretary of the Treasury. His position made authorized to act alone on all matters about the country's finances. Chase, like almost everyone at the time, underestimated the duration and the cost of the war.[2] Within a few months, the costs of the war would clearly run far beyond the government's limited income from tariffs and excises.
The Lincoln administration sought loans from major banks, mostly in New York City. The banks demanded very high-interest rates of 24 to 36 percent. Lincoln refused to borrow on such terms and called for other solutions
Greenback (1860s money)...
Is trouble on the horizon for the Federal Reserve Money?
This series is constructed as the aggregated daily amount value of the RRP transactions reported by the New York Fed as part of the Temporary Open Market Operations.
Overnight Reverse Repurchase Agreements: Treasury Securities Sold by the Federal Reserve in the Temporary Open Market Operations...
U.S. Federal Reserve's reverse repo facility hit a new all-time high of $486 billion today.
Telegram: Disclose.tv 2753: Reverse repo of Federal Reserve....
Russia to exit from all Dollar assets in its Wealth Fund & to invest in Euros, Pound, Gold, Yuan instead - Russian Finance Minister Siluanov
Telegram: Disclose.tv 2666: Russia is leaving the dollar assets ....
Nations across the world have to diversify more and more as Washington is using the dollar to put political and economic pressure on its rivals, according to investment guru Jim Rogers.
Dollar has political & economic problems as deep-in-debt US exploits it as leverage โ Jim Rogers...
The overnight repo rate is the best indicator of a monetary system on the verge of collapse.
BANKS FAILING: Fed Struggling To Maintain Control, Silver About To Go Vertical?...