Home|Did You Know?|22K Gold Replica of US Currencies|1861 Demand Note
The series of 1861 Demand Notes were the first federal paper currency. Shortly after the start of the Civil War in 1861, the U.S. goverment needed money to finance the war. As a result, Congress on July 17, 1861, authorized the Department of the Treasury to produce the first U.S. paper money. At this time, silver and gold coins contained their precise face value in bullion and were therefore guranteed to be worth their face value. The demand Notes, on the other hand, had to be accpted on faith that the government would honor them. They were promissory notes that could be redeemed by the bearer "on demand" for their face value. Demand Notes were first released in August 1861.
