Greenbacks. During the civil war in America, from 1861 to 1865, the immense expenditure of the United States government led to the printing of an unprecedented number of bank-notes, bonds, and currency papers of various kinds. These documents, from the colour presented by them, or some of them, obtained the name of greenbacks, a designation which came to be loosely used for all United States bank-notes. The first 'demand notes' were issued in August 1861; the first greenbacks proper were of date March 10, 1862. Soon forged notes and bonds were in circulation; but by degrees a large establishment was organised at Washington, under the immediate control of the Secretary to the Treasury, and the precautions used were such as almost completely to baffle forgers. The paper currency, whose value had fluctuated greatly, was declared convertible into coin on 1st January 1879, and specie payments completely resumed. For the manufacture of the notes from first to last, see BANK-NOTES.
The great inflation of the currency during the war, along with the heavy demand for all sorts of farm-produce, brought a period of prosperity to the western farmers, which ended with the war itself. In 1867-68 the 'Ohio idea,' as the demand for an irredeemable paper currency was called, found much favour with the Democrats, especially in the West; and in 1874 an independent Greenback party held a convention at Indianapolis and formulated its demands. In 1876 the party nominated Peter Cooper (q.v.) for the presidency; he received .97 per cent. of the popular vote. In 1880 the Greenback candidate was James B. Weaver, who polled 3.33 per cent.; and in 1884 General B. F. Butler was put forward, and received 1.33 per cent. of the popular vote. None of the candidates ever received electoral votes. In 1888 there was no Greenback candidate; and of late the two sides on the currency question have been championed by Bryan (q.v.) and McKinley (q.v.).