As the war continued, New Haven, which had been depressed except for the port, began to prosper.

Factories are running at full capacity, and almost all factories need to expand.

Recruitment notices are also hung everywhere and the requirements are very low.

As long as you have hands and feet, you can find a job, and as long as you work hard, the salary will not be low.

For these people, they began to champion President Abraham Lincoln.

Because, without contrast, there is no harm, and without contrast, there is no gratitude.

They remember what kind of life they had had.

But with the booming heavy industry in the coastal areas do not understand. Further inland, it is bleak.

First of all, the main railway arteries have not yet been built here.

Therefore, bulk cargoes, except for agricultural products, are almost insulated from them.

At the same time, because a large number of soldiers were sacrificed at the front. President Abraham Lincoln signed a decree.

What kind of decree is this?

All young adults between the ages of 20 and 40 will be conscripted into the army by themselves if necessary.

If you refuse to be called, you will be fined two dollars.

If you can't pay the fine, you have to go to the call.

Originally, when this news appeared, almost everyone thought that President Lincoln had something wrong with his brain.

Because, how could the U.S. government, as a small government, issue such a mandatory decree?

Because, this mandatory decree, once issued. If the implementation is not in place, a problem will occur.

That is – the credibility of the government has been lost.

And once this happens, it means that the government no longer has any power to speak, and no one listens to you anymore.

And this is definitely a big crisis for the rule.

But these people who suspect that something is wrong with the thinking of the Lincoln administration are what is wrong with their thinking.

Because, they have been peaceful for a long time, but they do not realize one thing.

What's going on?

It is now a wartime system.

As the name suggests, the wartime system is the system that is implemented in times of war.

This is a state similar to emergency mobilization.

Under such circumstances, the scope of the US federal government, which was originally only a small government, will rapidly expand.

Crucially, the federal government can command the military to assist in the fulfillment of directives.

And the style of the conscription team transferred back from the front line is not at all civilized and unreasonable.

As I said earlier, the northeastern coast of the United States, that is, the New England region, has begun to regain prosperity in this war.

Two dollars is a lot for them, but it's not impossible.

In order to ensure their own operating rate, some factories will also issue loans to their workers in various ways.

So that they can hand over the money that the state asks for and then owe themselves money.

In this way, there is no need to pay salaries.

And, there is also a reason for workers to work hard, so why not?

Unfortunately, for the small town station in the interior, it is very uncomfortable.

They just want to find a business owner to sell to, but they can't find it.

And, those veterans who have returned from the front.

At the behest of the federal government, it will suddenly attack and block the transportation arteries of small towns, and wipe out all the young and middle-aged people in the towns.

If there is a two-dollar ransom, freedom can be granted.

If not, you're going to enlist.

Such a policy has caused a great backlash, and some people even think that it is unconstitutional.

General Sherman, the leader of the U.S. Federal Army, said in a public speech, "Don't ask what the country can do for you, but what you can do for the country!"

Of course, this sentence was not invented by General Sherman himself.

All eyes were focused on this unprecedented conscription.

What no one realizes is the skyrocketing expansion of Bank of America.

Almost any small city with a population of more than a thousand.

No matter how much business there is in this small city, whether it will lose money or not, Bank of America will at least open a business here.

In addition, U.S. dollar metal currency can be exchanged for U.S. bank bills at the business location.

In addition, there is often a department store near the Bank of America.

And in this department store, it is always cheaper to buy things with American bank bills than to buy medicine with metal coins.

At the same time, these people saw the name Bank of America.

Gradually, they turned American bank bills into dollars.

And think of the Bank of America as the bank of the U.S. government.

After all, even those GIs who came back from the front were so vicious that they used American bank bills to buy things.

As for those American soldiers, the reason why they spend American bank bills is definitely not because they agree with American banks.

Rather, because their allowances, in addition to physical goods, are only American bank bills.

In fact, they also prefer metal dollars, after all, the real weight is more reassuring.

However, metal dollars are not issued at all, and even if the exchange is discovered, they will face severe punishment.

General Sherman said that this was because the metal dollars were too heavy and would affect the offensive of the troops.

When he said this, the soldiers of the north believed him.

Gradually, they got used to using U.S. bank bills and mistaking them for dollars.

And the reason why their military pay will be this kind of green bank bills.

Definitely not because of what the weight of the money will affect the tactical moves.

It's because the government in the north has no money.

It's interesting to say, how can the government run out of money?

With the common sense of modern economics, you will know that only when the goods circulating in the market match the currency, is the ideal state.

However, a metallic monetary system based on gold and silver coins.

Perhaps, at a certain time, it will be enough.

However, most of the time, there is a problem.

The problem is that as the size of the economy expands, there are only so many gold coins and gold coins.

The price of assets in the market will fall, and companies may even stop production in order to ensure profits.

If this situation is allowed to continue, a deflationary economic crisis will occur.

In normal times, it may be possible to quietly wait for such a crisis to end, or to develop further.

However, it is now wartime.

President Abraham was worried about this.

Until Doug showed him a clear way, which was to have him issue a credit currency, a currency based entirely on the credit of the northern government.

It's just that Lincoln's staff after carefully studying the Constitution.

It was found that there was nothing in the constitution that gave the government the power to issue currency.

That's when Doug came up with a second solution.

That is, the U.S. federal government borrows money from U.S. banks, and U.S. banks print U.S. bank bills to pay for the loans.

This borrowing is secured by the credit of the U.S. federal government, or the tax revenue for the coming year.

At the end of the year, the federal government can choose to use metal dollars or U.S. bank bills to pay off its debt.

At the same time as this borrowing, the U.S. federal government got a lot of money out of thin air.

Lincoln's staff, when they learned of this solution, were about to blow up the Bank of America almost instantly.

The reason why they are so excited is that on the one hand, there is Doug in operation, and on the other hand, as the war develops, the North is too short of money.

Although, it is possible to borrow a part of the funds from the market in the form of issuing treasury bonds.

However, during the war, the very existence of the federal government was a problem.

And at this time, it is the big capitalists who have the most cash.

They're not going to spend everything they have to buy Treasury bonds issued by the federal government.

Because, for them, once the federal government fails, these national debts are lost.

In addition, although there are some civilians with simple patriotic feelings, they want to buy government bonds.

But what is the use of which point they buy?

At this moment, the solution given by Doug is the most realistic solution.

But when Lincoln saw this suggestion, he knew that Doug's plan was almost complete.

Although, he did not receive the name of the central bank.

But once the federal government starts borrowing from U.S. banks, then U.S. banks become the de facto central bank.

Lincoln knew that in the future, there would be big problems.

However, when the most important issue is now, if we can't even live now, how can there be any future?

Thus, the first estimates of the annual tax revenues for 1860 based on the taxes of 1859 appeared.

The federal government then uses this tax amount to make mortgages to U.S. banks.

And the U.S. banks, which accepted the mortgage, began to print a large number of green bank notes.

However, unlike in the past, this time the green bank note is printed with the face of President Abraham Lincoln.

And, at the same time, this money began to flow into the market from various channels.

Because of the government's strong promotion, the scope of its use is far wider than that of the Bank of America itself.

Even, in the hearts of ordinary people in the north, this green-backed dollar has become a currency in the true sense.

Of course, there are also doubts about the basis for the issuance of greenback dollars.

Because, the creation of the green-backed dollar requires the U.S. federal government, and it needs to first produce arrears before the corresponding currency is born.

Once this borrowing behavior expires, the green-backed dollar in the market will face pressure to recover.

And once it enters the recycling cycle, it means that the liquidity in the market becomes smaller, and it falls into a deflationary state like the lack of metal money.

Therefore, in order not to fall into a deflationary crisis, we can only keep borrowing and borrowing without stopping.

In other words, the borrowing government, if it wants to maintain the normal development of society, should not expect to repay the money itself.

However, there is a problem with this.

That is, Bank of America is not a charitable bank.

Even if it is borrowed by the U.S. federal government, there is interest.

This means that the U.S. federal government has a cost to use the greenback dollar.

Although, this cost can be paid in greenback dollars.

However, this means that even if you do nothing, you will need to borrow more money to maintain the status quo even if you do nothing and borrow more money to maintain the status quo.

Some people even think of a very sad future, that is, one day, the federal government will not even be able to pay the interest.

However, at this time, there are objections.

Including the United Kingdom, France, Germany, these most advanced countries, their currency issuance is the same.

The credit currency they issue.

It's all about having a loan before you have a currency.

They are so advanced, they have no problem with such a system, why do they have problems when they come to us?

Moreover, you say that this is not good, you propose a better solution to solve the current crisis!

Obviously, there is no other solution that works better and has fewer drawbacks.

As a result, Bank of America obtained the right to issue green-backed dollars.

Based on the tax revenue of the year in the United States, the greenback dollar is issued.

In this way, the biggest hidden danger of the Bank of America has been temporarily solved.

In the past, U.S. bank bills were directly pegged to gold, which meant that each bank note represented a certain amount of gold.

Obviously, far more bank bills were issued than gold.

Therefore, in the event of a run, it is bound to go bankrupt.

Now, the basis of issuance has been transformed from a fixed weight of gold into a kind of collateral secured by government taxes, that is, government credit.

At this time, if there is a run.

The Bank of America can simply throw the pot on the U.S. government.

And the federal government, too, will begin to explain its own policies.

Just one week after Bank of America received the right to issue greenback dollars, Bank of America made a announcement.

Announced that their U.S. bank bills will be decoupled from gold and begin to be tied to government credit.

A large number of people began to exchange bank notes for gold before the deadline.

However, Bank of America only lends a very small amount of money per day.

And said, this is a directive from the federal government of the United States, if it makes sense, please go to the federal government.

The federal government now has a request for the Bank of America, and naturally it will take the blame.

They are very happy about this kind of pot.

After all, it means that they will have money right away.

It means that the poor days of the US federal government are coming to an end.

Many people believe that the U.S. federal government is a clean government.

In fact, not really, if a government is really that clean.

Why would anyone come here to be an official with a very meager salary?

All the personnel of the Lincoln administration represent all the big capitalists, who are not only for the organization behind them, but also for themselves, crazy profits.

And the greenback of the dollar is obviously an opportunity.

They saw this opportunity and would not give it up no matter what.

Credit currency?

Great invention, isn't it?