Legal Tender Act of 1862

E120573

The Legal Tender Act of 1862 was a U.S. Civil War–era law that authorized the issuance of paper money not backed by gold or silver and declared it legal tender for most debts, fundamentally reshaping the nation’s monetary system.

All labels observed (7)

How this entity was disambiguated

Statements (49)

Predicate Object
instanceOf United States federal statute
monetary law
appliedTo private debts
public debts
authorized issuance of United States Notes
issuance of paper money not backed by gold or silver
challengedInCase Hepburn v. Griswold
Knox v. Lee
Parker v. Davis
codifiedIn 12 Stat. 345
constitutionalControversy raised questions about Congress’s power to make paper money legal tender
country United States
dateEnacted 1862-02-25
dateSigned 1862-02-25
declaredAs legal tender for most debts
effect contribution to wartime inflation
expansion of the federal government’s monetary powers
fundamental reshaping of the United States monetary system
increase in the money supply
enactedBy United States Congress
excludedFrom customs duties
interest payments on federal bonds
historicalSignificance established federal paper currency as a central feature of the U.S. financial system
strengthened the Union’s capacity to wage total war
influenced later U.S. monetary policy on fiat currency
inForceDuring 1860s
initialAuthorizedAmount 150000000 United States dollars
jurisdiction United States federal government
legalTenderStatus United States Notes
linked to: United States Note
legislativeBody United States Congress
monetaryInnovation introduction of fiat paper currency at the federal level
nickname Greenback Act
politicalOppositionFrom Democratic Party
politicalSupportFrom Republican Party
product greenbacks
purpose to finance the Union war effort during the American Civil War
to provide a national paper currency
relatedTo Legal Tender Cases
National Banking Acts
Second Legal Tender Act
Third Legal Tender Act
sectionalOpposition some border and Midwestern interests
sectionalSupport Northern states
signedBy Abraham Lincoln
subjectMatter currency issuance
legal tender
public finance
subsequentIncrease additional issues of United States Notes by later legislation
temporalContext American Civil War

How these facts were elicited

Referenced by (8)

Full triples — surface form annotated when it differs from this entity's canonical label.

United States Note authorizingLegislation Legal Tender Act of 1862
National Banking Act of 1863 relatedTo Legal Tender Acts
linked to: Legal Tender Act of 1862
Legal Tender Act of 1862 nickname Greenback Act
linked to: Legal Tender Act of 1862
Legal Tender Act of 1862 relatedTo Second Legal Tender Act
linked to: Legal Tender Act of 1862
Legal Tender Act of 1862 relatedTo Third Legal Tender Act
linked to: Legal Tender Act of 1862
Chase Court notableCase Legal Tender Cases
linked to: Legal Tender Act of 1862
Coinage Clause usedInCaseLaw Legal Tender Cases
linked to: Legal Tender Act of 1862
Coinage Clause relatedConcept Legal Tender Clause
linked to: Legal Tender Act of 1862