Bill Jones' Coronet Quarter Eagles
1861 Type 2 Reverse

Owner Comments:

This coin resides in my collection as part of my 1861 Civil War era gold coin set. This is an on-going project.

I believe that the Union side thought that they could pay the additional military expenses caused by the war in gold, which the only Federally issued money in circulation at the time. Many thought that the war would be over quickly, but when that assumption evaporated the North was forced to resort to paper money. The South began issuing paper money, which the Confederates labeled as "bonds" which paid interest, from the beginning. As was the usual result that comes from issuing too much paper money, there was massive price inflation on both sides.