-with Bank of the United States > Second Bank of the United States (1828-1868)

-in 1837 the American Presidents > Story Court bars states from publishing notes

-causes slowdown in the west

-as the wildcat banks there can no longer issue notes

-also does cause a blip of an economic panic

-but doesn't last long as Second Bank issues more notes

-ultimately this does cause there to be one consolidated national currency

-with opening of Liberty and Union War (1868-76) the collapse of the Second Bank results in these notes' values plummeting

-only maintain some value with belief that winning side might redeem notes

-comes to nought

-rushes upon rushes on the bank right before and during war to prevent

-a lot of these notes end up being used as firewood

-during the Liberty and Union War (1868-76) the Constitutional Government seizes several Bank deposits and consolidates seized bullion

-this creates what's called the "War Treasury"

-government having barely any credit means it's unable to publish notes so must do something else

-in 1869 order to fund war uses this War Treasury to back the publishing of notes

-carry 11% interest and mature in five years

-so high to make people buy up

-and government thinks it'll win pretty soon so

-introduced in late 1869

-as increasingly clear War Treasury Notes do not suffice in funding the war

-nicknamed "mauveback" after it being in mauve

-Legal Tender Notes convertible with bonds printed by Bank of the United States > War Bank (1869-1879)

-need to finance the war effort leads to aggressive inflation during Liberty and Union War (1868-76) years

-results in widespread financial chaos

-but it's a need to win

-rallies behind in 1872 election and inflation rates fall

-in 1874 some pretty extreme levels of inflation come with the need to reimburse War Treasury Notes

-this really damages the creed

-in 1876 with the end of the war there's a level of deflation

-results in economic decline

-the worker-friendly American Presidents > 1877-1879 John Wentworth (Justice) † government issues greenback inflation bill in following Economic schools > Birmingham School

-however with broad-based tax cuts there's a sudden inflationary wave

-with assassination of Wentworth there's a sudden wave of inflation due to panic

-and some fears of governmental collapse

-1880 election and win of American Presidents > 1879-1887 Curran Emmet (Justice) reduces this fear

-with outbreak of Antillean War (1880-4) there's a fairly high level of inflation

-to finance war

-but not as high as older War levels due to Emmet's management and development of reserves

-despite this length of war results in inflation due to loss of confidence

-in 1883 there's a pretty huge financial scandal showing embezzlement across the board

-including treasury secretary, president of bank, and railroads

-results in a very high level of inflation

-leads to the retirement and replacement currency

-in 1884 Emmet uses opportunity to reform currency from position of strength

-replacement of dollar with eagle, 1 eagle = 1,000,000 dollars

-1.3 eagles, 1884 = 1 dollar, 1869

-additional unit of pullus, 100 pulli = 1 eagle

-these are done in the form of Legal Tender Certificates

-following theory of Economic schools > Concord School

-and these are done through the Bank

-every two weeks, people need to put stamp on their currency to keep it valid

-they need to pay amount on stamp equal to 1/50 of value

-after a year they've gotta replace it with another one

-obtained from either Bank or government office

-government and Bank engages in program of buyup of old Legal Tender Notes to destroy them

-and makes time limit after which they're all considered invalid

-Legal Tender Notes still exist but as a subsidiary currency

-Certificates being main one

-results in period of economic realignment

-but is eventually successful

-notably sees a lot of currency going into banks and people only taking it out to spend it

-this in turn results in banks lending a lot more money but forced to have lower interest rates