When the American Civil War was going on, President Abraham Lincoln had to conduct a successful military campaign against the South which had formally withdrawn and also create the Union of Confederate States at the same time.
He asked the Department of the Treasury to print and release Legal Tender paper money. He also asked the African-Americans to serve in the Union army. The new notes were used for financing the war. People protested against these moves.
Experts believe that more than 40 percent of the money circulating were in the form of fake notes at this time. This was required to survive the financial crisis and improve the socio-economic conditions in times of war. It all depends on whether people accept these notes or reject them.
People were also against allowing African-Americans into the army and fighting along with white soldiers. The African-Americans had to face a lot of oppression on the battlefield and otherwise during these times. African-American soldiers were mostly equated as counterfeit. During the mid-nineteenth century, these counterfeits were considered to be progressive and important for the nation’s development. It also abolished racism by fighting together for a common cause. These banknotes represented strength and national unity on the one hand, while regional and racial division on the other.
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