Examples of paper money in the following topics:
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- Congress made two issues of paper money, in 1775–1780, and in 1780–81.
- This paper money would supposedly be redeemed for state taxes, but the holders were eventually paid off in 1791 at the rate of one cent on the dollar.
- By 1780, the paper money was "not worth a Continental", as people said, and a second issue of new currency was attempted.
- In effect, the paper money was a hidden tax on the people, and indeed was the only method of taxation that was possible at the time.
- During the Revolution, Congress made two issues of paper money to be redeemed for state taxes, such as this paper currency issued in 1776.
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- An additional means of financing the war was printing money, a strategy also employed in the Confederacy.
- The Legal Tender Act of 1862 was enacted in February 1862 to issue paper money to finance the war.
- As the paper money depreciated, it became the subject of controversy, particularly because debts contracted earlier could be paid in this cheaper currency.
- Apart from instituting new taxes and printing money, a third major source of funding was government bonds.
- The Union printed paper money, which was used in lieu of gold and silver, to finance the war.
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- Under the Articles of Confederation, Congress was denied any powers of taxation and could only request money from the state legislatures.
- As more money was printed by Congress, the continental dollars depreciated, and currency depreciation became rampant.
- For example, in 1779, George Washington wrote to John Jay , who was serving as the president of the Continental Congress, "that a wagon load of money will scarcely purchase a wagon load of provisions".
- In an appeal to the States to comply, Jay wrote that the taxes were "the price of liberty, the peace, and the safety of yourselves and posterity"; however, the States did not respond with any of the requested money.
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- Congress made two issues of paper money, in 1775–1780 and in 1780–81.
- This paper money was to be redeemed for state taxes, but the holders were eventually paid off in 1791 at the rate of one cent on the dollar.
- By 1780, the paper money was "not worth a Continental", as people said, and a second issue of new currency was attempted.
- In effect, the paper money was a hidden tax on the people, and was the only method of taxation that was possible at the time.
- Debtors benefited by paying off their debts with depreciated paper.
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- In an effort to take control of the unstable economy, Jackson issued a Specie Circular in 1836 requiring all purchases of federal lands to be paid in metal coin rather than paper money.
- Many blamed the economic turmoil on the banks' irresponsibility in funding rampant speculation and issuing excessive paper money unbacked by bullion reserves.
- His egalitarian rhetoric allowed him to cast himself as the people's tribune against the moneyed elite and their tools in government, introducing an enduring theme in American politics.
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- British taxes on expensive wares such as tea, glass, lead, and paper were forfeited, and other taxes became cheaper.
- Because of this, the U.S. began to print paper money and bills of credit to raise income.
- This proved unsuccessful—inflation skyrocketed and the new paper money's value diminished.
- Debtors also benefited from the economic
situation since they were able to pay off their debts with the depreciated
paper money, amounting to a discount on their previous balances.
- By 1780, the United States Congress had issued over $400 million in paper money to troops.
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- As loans increased, paper money from new state banks flooded the country, creating inflation that drove the price of land and goods still higher.
- When the war ended, the bank continued to issue only paper banknotes and to redeem notes issued by state banks with paper only.
- This shaky economic scheme worked only so long as people were content to conduct business with paper money and refrain from demanding that banks instead give them the gold and silver that was supposed to back it.
- If large numbers of people, or banks that had loaned money to other banks, began to demand specie payments, the banking system would collapse, because there was no longer enough specie to support the amount of paper money the banks had put into circulation.
- The money they received in return was credited toward their debt.
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- However, during World War I, many countries went off the gold standard to fund their war effort by printing paper money.
- In the aftermath of World War I, the international balance between gold reserves and paper money was thus dramatically shaken.
- That caused a very fragile international situation, in which national economies had little flexibility and governments made decisions depending on the relation between paper money and gold, despite the existing weaknesses of the post-WWI gold standard.
- The outflow of gold in a country decreased the supply of money, which in turn triggered deflation (decrease in prices).
- These reforms enabled the Federal Reserve to increase the amount of money in circulation to the level the economy needed.
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- The Jacksonians successfully mobilized both their "hard money" and "paper money" factions in the anti-Bank campaign, allowing Jackson to score an overwhelming victory against Henry Clay.
- Soon thereafter, large contingents based in America's financial and business centers lobbied against Biddle's economic warfare, compelling the Bank to reverse its tight money policies.
- After removing federal funds from the bank, Jackson placed the money in so called "pet banks," which were privately owned.
- This document required all purchases of federal lands to be paid in metal coin rather than paper money.
- His egalitarian rhetoric allowed him to cast himself as the people's defender against the moneyed elite and their tools in government, introducing an enduring Jacksonian mythos to American politics.
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- On May 10, 1837, every bank in New York City began to accept payment only in specie ("hard money," usually in the form of gold and silver coinage), forcing a dramatic, deflationary backlash.
- This inflation of money encouraged unsustainable investments.
- Jackson was motivated by the concern that the government was selling land for state bank notes of questionable value and that the bank was issuing excessive paper money unbacked by specie reserves.
- However, Jacksonian Democrats argued that the Bank had funded rampant speculation and introduced paper-money inflation, and was therefore chiefly responsible for the crisis.
- Many planters in Mississippi had spent much of their money in advance, leading to their complete bankruptcy.