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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1388 |
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A basis for resolving the problem of a sound currency was achieved when the American Civil War induced the federal government to raise large sums of money through the issuance of bonds. The National Currency Act of 1863, later amended and renamed the National Banking Act, was enacted by Congress to establish a national banking system and a uniform national currency...
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Later experience revealed that this system was not sufficiently elastic in providing adequate amounts of currency during periods of prosperity and in contracting the volume of currency in slack times.
On the brink of bankruptcy and pressed to finance the Civil War, Congress authorized the United States Treasury to issue paper money for the first time in the form of non-interest bearing Treasury Notes called Demand Notes...
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