What is the Legal Tender Act of 1862?

Act that authorized the issuance of paper fiat money during the American Civil War. This act was passed to finance the war without raising taxes. It caused controversy because the fiat money tended to depreciate compared to coin money. The paper money was a discounted way to pay off debts.

What people ask…

What was the Legal Tender Act of 1862?
How did the Legal Tender Act impact the economy?
What did the Coinage Act of 1873 do?
What was the purpose of the National Banking Act 1863?
Who called the Coinage Act of 1873 the crime of 1873?

See Also…

Legal Tender Cases, Fiat Money, Greenbacks

Back to All Terms