What was a major belief underlying the issuance of Greenbacks?

The issuance of Greenbacks during the Civil War was based on the belief that economic stability could be maintained through controlled currency inflation. The U.S. government, facing a financial crisis due to the expenses of the war, opted to issue paper money (Greenbacks) as a means to finance its efforts without relying solely on gold and silver reserves. This strategy was intended to provide a flexible supply of currency that could help stimulate the economy and meet wartime expenses, even at the risk of inflation.

The idea was to support the war effort while also attempting to stabilize the economy by allowing for an increase in the money supply. Proponents believed that by carefully managing this increase, inflation could be controlled, allowing for continued economic activity to support both the government and the populace. This belief reflected a shift away from the strict adherence to the gold standard that characterized earlier economic thought and indicated a willingness to use government intervention in the economy for public benefit.