National Currency Act

The National Currency Act of 1863 was a law enacted by the U.S. Congress to establish a standardized national currency system. Its main goal was to create a uniform and stable national paper money backed by government securities, replacing the numerous state-issued banknotes that varied in value and reliability. This act led to the creation of the national banking system, allowing banks to issue standardized national banknotes, which helped improve trust, facilitate commerce, and strengthen the country’s financial stability during and after the Civil War.