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EC SD | The US dollar was not convertible to gold during the Civil War era. To fund the war, an excessive amount of money printing took place which caused high inflation. By the end of the war, there were twice as many dollars in circulation compared to the gold holdings of the US. It took years of selling bonds to Europeans in exchange for their gold to get back to a fully gold-backed dollar, until finally in 1879, citizens could once again exchange paper dollars for gold at par value. | |
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$100 bill no longer is worth its weight in gold
