Title: TreasuryDirect KIDS - The History of U.S. Public Debt - The Civil War (1861-1865)
Headings: 
The Civil War (1861-1865)
Legal Tender Act (1862) allowed the Government to:
The National Bank Act (1863) allowed for the creation of:

Content: Legal Tender Act (1862) allowed the Government to: print paper money known as greenbacks
sell $500 million in bonds to raise money
Before the Legal Tender Act, each bank could print its own form of paper money; paper money had value because it was backed by gold. This means that there is an amount of gold held by the Government that’s equal to the value of the paper money. The money printed by the Government after the Legal Tender Act was not backed by gold because the Government did not have that much gold at the time. The “greenbacks” could, however, be used to pay taxes and buy items from stores. The National Bank Act (1863) allowed for the creation of: a nationwide banking system that loaned money to the Government to pay for the war
a national system of paper money and coins
By the end of the war in 1865, Government debt had exploded, reaching $2.6 billion. That was more than 40 times what it was only five years earlier at $65 million. 1860 - The U.S. Government debt was $64.8 million.