Question

Why did the government issue greenbacks in the year 1861? (I was out the day we did this in class, so heads up I don't know what any of this is)

Answer 1

Greenbacks were the paper money printed and issued by the U.S. government during the American Civil War (1861–65). The financial demands of the war quickly depleted the nation's supply of specie (gold and silver). ... The notes were legal tender—money that had to be accepted in payment of any debt.


Source

Answer 2

So your saying that, because of the war, the money supply went down so they made the paperback money instead to keep check?

Answer 3

I guess that makes sense. Thanks for helping.