Public Credit Act of 1869
The Public Credit Act of 1869 in the USA states that bondholders who purchased bonds to help finance the Civil War (1861 – 1865) would be paid back in gold.
The act changed the economy to a fiduciary standard based on a fiat currency called United States Notes, or more popularly, greenbacks.
The issuance of greenbacks and the sale of government bonds to finance the war were led by the Secretary of the Treasury at the time, Salmon P.
The passing of the Public Credit Act of 1869 was the first definitive piece of legislation that moved the U.S. toward reinstating a gold standard.
However, the act included no explicit dates, people, or actions intended to pay back the bondholders in gold.
Image of one dollar "Greenback",
first issued in 1862
first issued in 1862