Question

What did the United States Treasury create when the Legal Tender Act was passed in 1862? A. the banking system B. a common national currency C. Confederate money D. a new coin

Answer 1

Your answer is going to be they had created a common national currency. This is because this would help pay for other countries debt that we had owed them.







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Answer 2

When the Legal Tender Act was passed in 1862, the United States Treasury created:

(B) a common national currency.

Further explanation

In 1862, the American Civil War had already begun a year ago and was starting to cost a lot. It was necessary to finance the weapons, the foods, and the medicines for the soldiers as well as the repair of the various damages caused by the combats. The gold and silver reserves of the American Congress were practically empty. There was no money left to pay this huge bill. So, it was decided to create a new currency that was called the Greenbacks.

The Confederates in the south had been printing such paper money since the beginning of the war in 1861. In the north, the leaders were afraid that the arrival of this money would create enormous inflation and make fall the country's economy into a major crisis. To avoid it, they set up new taxes on the population. This policy was a success because it allowed Congress to fund the war and take the lead on the southern rebellion.

Learn more

1. McCulloch v. Maryland: brainly.com/question/1373726

2. Reconstruction after the civil war: brainly.com/question/507264

3. General Ulysses S. Grant: brainly.com/question/7468496

Answer details

Subject: History

Chapter: The American Civil War

Keywords: cost of American civil war, damages caused by the American civil war, history of greenbacks, facts about the Greenbacks