1850 American Gold Tycoon.

Chapter 739: Suffering the common people

"This is paper money printed by the best printer in Philadelphia."

In the presidential office hastily converted from Independence Hall in Philadelphia, Salmon Chase, the Union's Secretary of the Treasury, showed Lincoln several green Union dollar bills of different denominations.

"If you think it's okay, we can officially print and issue banknotes."

In North America, the three states on the west coast were the first to issue large quantities of paper money in the name of the government.

Under the leadership of the so-called Central Bank of the American Republic in the West, the four largest commercial banks in the West: Bank of America, Jardine Matheson Bank, Bank of Boston, and Banco de Toussaints were united to establish the Republic Reserve Committee (formerly the Western Reserve Committee) to issue official banknotes.

Because the main color of the banknote is red and the surface is printed with anti-counterfeiting auspicious cloud patterns and dragon patterns, this banknote is also called red banknote or dragon banknote.

Thanks to ample gold reserves, linkage with petrochemical products, good government credibility and stable value of red notes.

The red banknotes have a relatively high recognition and usage rate in the Americas, Europe, East Asia, the Qing Dynasty's coastal trading areas, and Japan.

Initially, these overseas users were skeptical about the value of the red notes, and only reluctantly used them on a small scale because they could enjoy tariff preferences and priority in purchasing petrochemical products by using the red notes.

Later, these foreign customers engaged in international trade gradually felt the many advantages of red banknotes in the process of using them, and their acceptance of red banknotes became increasingly higher.

Admittedly, red banknotes also have the disadvantage that the cost of counterfeiting is lower than that of coinage and they are easier to counterfeit.

There have indeed been several serious cases of counterfeiting red banknotes in the west.

But overall, it is still within controllable range.

In the six months since the war began, the Northern Union Army suffered repeated defeats on the front lines. The North was destroyed not only by the front lines, but also by the large-scale issuance of war bonds at the beginning of the war.

Not only did the value of unredeemed war bonds plummet, but newly issued war bonds also fell out of favor.

After losing the two major tariff recipients in the South and the West, the federal government's finances were already in deficit as early as August this year.

The war funds at the front were barely maintained by Salmon Chase's travels around major cities to raise funds and issuing a large number of war bonds.

At present, the federal government has mobilized a total of 120,000 people to gather and train in Philadelphia, New York, and Pittsburgh to prepare for the next stage of counterattack.

Military expenditure is undoubtedly an astronomical figure. As the federal finance minister, Salmon Chase must find a way to open up new sources of funds.

Lincoln stroked several fine green bills with his rough fingers as if he were stroking the First Lady's headlights.

The North side of the $10 bill with the largest denomination is printed with the White House, which no longer belongs to them.

Lincoln put down the $10 bill as if he had been electrocuted, picked up a $5 bill and examined it carefully.

Unfortunately, the Capitol Hill printed on the back of the $5 bill is not currently under the control of the Union.

"The stability of the value of red notes lies in the sufficient reserves of precious metals in the West. If there are not enough precious metal reserves, even if we issue paper money, our paper money will depreciate rapidly in a short period of time, affecting people's livelihood." Lincoln said worriedly.

"Do we have enough precious metal reserves at present?" Paper money is nothing new to the United States. At the beginning of the founding of the country, major banks in the thirteen states all issued bank drafts, which were also called US dollars by the people.

However, the scope of use of bank drafts is very limited after all. Basically, only merchants with large-scale trade needs will frequently use bank drafts.

Moreover, banks in different states of the United States set up barriers against each other, further hindering the large-scale circulation of US dollar bills.

Up to now, the most frequently used and widely used currencies in the North are still the silver coins of Mexico and the gold coins of the West.

"Of course not, sir." Salmon Chase said helplessly. What Lincoln said was right. If the Federation had enough precious metal reserves, would he be messing around with paper money?

"But the depreciation time of our greenbacks is enough for us to win a battle. Even if we lose the next battle, the depreciation of the greenbacks will not be a problem for us to worry about."

What Salmon Chase meant at the moment was that if the Federation lost again, their government would have to step down. The issue of greenback devaluation was something the next government should worry about and had nothing to do with them.

"Let me think about it," Lincoln said, rubbing his temple. "When the West issued red notes, it was boycotted by the people. If we issue paper notes under such circumstances, the people will definitely curse us Republicans."

"We Republicans are already getting enough abuse, we don't need this one." Salmon Chase acted like a dead pig that was not afraid of boiling water.

"Let our people continue to suffer, and I will bear the blame for issuing paper money."

Lincoln's nose felt sore, and he stood up and lowered his head to look at the increasingly haggard Salmon Chase. This old friend who had worked with him to start a business in Springfield, Illinois, had long lost his former vigor and even looked a little old.

"Chase, Seward, thank you for your continued support." Lincoln put his hands on the shoulders of Salmon Chase, who was a head shorter than him, and didn't know what to say.

"A ceasefire with the West should be finalized as soon as possible," said Salmon Chase.

"Resuming trade with the West as soon as possible will help us accumulate precious metal reserves. Our economic system is still closely connected with the West. It is easier to earn gold and silver from the West than to earn pounds from the British or francs from the French."

"I'll do it as soon as possible." Lincoln nodded. The more precious metals he had in his hands, the slower the depreciation of the greenbacks would be even if they depreciated in the future, so that they would not plummet.

"Salmon, what if the public boycotts greenbacks and is unwilling to use them just like they boycotted our war bonds?" Seward, who had been silent, expressed his concerns.

"We control the executive branch of the government, and there are many ways, either hard or soft, to force them to use the paper money we issue." Salmon Chase is not worried about this.

"Besides, not everyone is boycotting our war bonds. Jones and Garrett are buying up our war bonds on a large scale."

"Jones and Garrett?" Lincoln felt that these two names were very familiar. "Is it Jones, the president of the Eastern Branch of the Bank of America, and Garrett, the president of the Atlantic Railroad Company?"

Lincoln had previously worked as a legal advisor for the Atlantic Railroad Company and had also had contact with the Bank of America. He was familiar with the heads of the two companies in the eastern region.

"That's them." Salmon Chase nodded.

"From another perspective, this is a good thing. It shows that western capital still has confidence in us." Lincoln said to Salmon Chase with a smile on his face.

"Samon, the issuance of banknotes will be your sole responsibility. You will personally take the lead and learn from the successful experience of the establishment of the Federal Reserve Board of the United States in the West. Bring in powerful large banks to issue our banknotes."

(End of this chapter)