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Greenbacks


jlueke
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When the government issued greenbacks in 1862 how did they get them into circulation and what were the key differences between that process and how the Federal Reserve does it now?

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I honestly have no idea. I never even thought about the logistics of distribution. I can only imagine that they were shipped by rail and secured wagon, along with coins, to their destinations, wherever those were. Interesting question, and one I hope can be answered.

 

:confus:

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My question was more about the legal aspect rather than the physical, logistical aspect; not that the latter isn't interesting as well. Now, with the Federal Reserve, the Fed gets money by borrowing though treasuries. It then lends that money to the banks at a discount and those banks get the money into circulation through more loans. Did the Civil War era greenbacks work the same way? Did the government issue the War Bonds which then created the money which was lent to the banks in forms of Greenbacks? Or was the Civil War currency pure fiat, they just printed the money and shipped it to the various banks?

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