On March 10, 1862, the U.S. government began issuing paper currency known as “greenbacks.” These notes were not backed by gold or silver but by the credit of the federal government. They were introduced to help finance the Civil War. The move was controversial, since some feared inflation and questioned the value of unbacked paper money. Over time, greenbacks became widely accepted and set the stage for a more modern currency system. The experience influenced later debates over monetary policy, gold and silver standards, and the role of the federal government in financial markets.
