The United States Treasury created a common national currency when the Legal Tender Act was passed in 1862. The Legal Tender Act was passed on 25th February in the year 1862. This Act brought to an end the previously used gold and silver coins as the medium of transaction. This Act also helped the government in financing the costly Civil War as the gold reserve was highly depleted. The use of paper currency started after the passing of this Act in the United States. $150 million was printed in paper money by the United states government. The papernotes were known by the name of Greenbacks and they woked very well.
