scott s. Wrote:
Jan 21, 2013 2:40 PM
When Abraham Lincoln was president, the Treasury did issue "United States Notes" which were non-interest bearing. But also Lincoln passed the National Banking Act which created the Office of Comptroller of the Currency and allowed national banks to issue National Bank Notes (banks were required to hold a certain amount of treasury debt for the privilege). An excise tax was placed on bank notes issued by state-chartered banks, effectively ending them.