National Banking Act of 1863
1863
USA
The National banking Act, passed by Congress during the Civil War, established a system of nationally chartered banks and required the currency issued by them to be backed by government securities. The act was subsequently amended to also require the taxation of state currencies, but not of national bank notes. This produced the intended effect of creating a uniform national currency. State banks and respective currency, none-the-less, continued to expand
1864
US national debt goes over $1 billion.
1864
Russia
The Tsar of Russia, Alexander II was refusing to allow a central bank in Russia.
1865
US National debt $2.7 billion.
England
The National Association of Trade Protection Societies was formed and began the wide distribution of credit information. That year it is reported that it received 75,000 credit inquiries and collected a sum of £200,000 through its debt collection agents.
One interesting criticism of Lincoln's Greenbacks was printed in the London Times.
"If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe." — Hazard Circular
The greenbacks continued to be in circulation until 1994, their numbers were not increased but in fact decreased.
Two contemporary views of the Civil War and the economic costs.
"In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply." — John Kenneth Galbrath
"Right after the Civil War there was considerable talk about reviving Lincoln's brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution." — W. Cleon Skousen
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