Financial Glossary: Greenback


en			ru			jp

Greenback

Greenback

A slang term for U.S. paper dollars.

Greenbacks got their name from their color, however, in the mid-1800s, "greenback" was a negative term. During this time, the Continental Congress did not have taxing authority. As a result, the greenbacks did not have a secure financial backing and banks were reluctant to give customers the full value of the dollar.

It took half a century to get all the foreign coins and competing state currencies out of circulation, but by the early 1800s, the U.S. was ready to try the paper money experiment again. Bank Notes had been in circulation for a while, but because banks issued more Notes than they had coin to cover, these Notes often traded at less than face value.

In the 1860s, the U.S. created over $400 million in legal Tender to finance its war against itself. These were called greenbacks simply because the backs were printed in green. The government backed this Currency and stated that it could be used to pay back public and private debts. The value fluctuated according to the North's success or failure at certain stages in the war. Confederate dollars, also issued during the 1800s, followed the fate of the confederacy and were worthless by the end of the war.

Posted by Privatebanking.com

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.