Changes

In 1873, the Republican-controlled Congress doubled the salary of the president to $50,000 a year (a great deal of money in those days), and increased the salary of many other officials in government.  The public was outraged, and their outcry caused a partial repeal.

In 1873, the Republican-controlled Congress doubled the salary of the president to $50,000 a year (a great deal of money in those days), and increased the salary of many other officials in government.  The public was outraged, and their outcry caused a partial repeal.

Grant had to deal with a big problem caused by the Civil War:  inflation.  Wars are expensive.  Remember the French and Indian War and how Britain taxed the colonies afterward?  Somebody has to pay all the bills from a war: the hospitals, the weapons, the food, the transportation, and even the meager wages for soldiers.  

Grant had to deal with a big problem caused by the Civil War:  inflation.  Wars are expensive.  Remember how Britain taxed the colonies after the French and Indian War?  Someone has to pay the expenses of war: the hospitals, weapons and ammunition, food, transportation, and (meager) wages for soldiers.  

The revenue from tariffs was not enough to pay for the Civil War.  Lincoln started an income tax for the first time (it expired in 1872).  He suspended the payment by the government to citizens in gold and silver, to protect its reserves.  He taxed manufacturers and the public through sales taxes.  But most of all, Lincoln financed the Civil War by issuing "greenbacks", similar to our green dollar bills today.  This was a change from monetary practices under Alexander Hamilton, when all currency was backed by gold or silver.  Lincoln's greenbacks were not backed by anything at all.  The government simply printed and distributed them.

The revenue from tariffs was not enough to pay for the Civil War.  Lincoln started an income tax for the first time (it expired in 1872).  He suspended the payment by the government to citizens in gold and silver, to protect its reserves.  He taxed manufacturers and the public through sales taxes.  But most of all, Lincoln financed the Civil War by issuing "greenbacks", similar to our green dollar bills today.  This was a change from monetary practices under Alexander Hamilton, when all currency was backed by gold or silver.  Lincoln's greenbacks were not backed by anything at all.  The government simply printed and distributed them.