The U.S. department of treasury first issued paper u.s. currency - TopicsExpress

The U.S. department of treasury first issued paper u.s. currency in 1862 to make up for the shortage of coins & to finance the civil war. There was a shortage of coins cuz people started hoarding them; the uncertainty caused by the war had made the value of items fluctuate drastically. Because coins were made of gold & silver their value didnt change much, so people wanted to hang onto them rather than buy items that might lose their value.

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