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In addition to Treasury Notes, Congress inside the 1861 registered the fresh Treasury so you can borrow $50 million in the form of Demand Cards, and that didn’t sustain attention but could end up being used on the request to possess gold and silver. But not, by December 1861, the brand new Union government’s source of specie try outstripped by demand for redemption and they were compelled to suspend redemption briefly. Although not, silver and gold gold coins continued to be awarded, resulting in the depreciation of one’s freshly printed notes as a result of Gresham’s legislation. Inside the 1869, Finest Court ruled within the Hepburn v. Griswold you to Congress cannot require creditors to just accept All of us Cards, however, overturned you to governing another 12 months from the Legal-tender Cases.
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