On 25 February 1862, the United States Congress enacted the First Legal Tender Act, heralding a significant transformation in the nation's financial landscape.
Faced with the mounting costs of the Civil War, the federal government authorized the issuance of paper currency known as "greenbacks," which, unlike traditional money backed by gold or silver, derived its value solely from government decree.
This unprecedented move not only provided the Union with much-needed liquidity but also set the precedent for modern fiat currency, fundamentally altering America's economic framework.
