Legal Tender Act
The Legal Tender Act was passed on February 25, 1862. This act allows paper money to pay the government bills, ending the process of using silver and gold in these transactions. This also allowed the government to finance the costly Civil War when the silver and gold reserves were depleted.
For more information on the Legal Tender Act: http://www.history.com/this-day-in-history/legal-tender-act-passed
For more information on the Legal Tender Act: http://www.history.com/this-day-in-history/legal-tender-act-passed