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The Continental Congress had issued Continental dollars between 17 to help finance the American Revolution.

The paper Continental dollars nominally entitled the bearer to an equivalent amount of Spanish milled dollars but were never redeemed in silver and lost 99% of their value by 1790 despite the American victory.

It allowed for Demand Notes to be issued in denominations of not less than and be redeemable through the assistant treasurer's office at St. This act also stated that the Treasurer of the United States and Register of the Treasury or any treasury official appointed by the secretary of the treasury should sign the notes. This act also granted a traditional privilege of Treasury Notes to the Demand Notes in that they were to be receivable in payment of all public dues, a privilege which was to figure prominently in their eventual disposition.

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Top row: The distinctive green ink used on the backs of Demand Notes gave rise to the term "greenbacks" Bottom row: Prominent design elements used on the front of and Demand Notes (located respectively under their denomination); pictured in the middle is the front of a Demand Note with prominent design elements listed A Demand Note is a type of United States paper money that was issued between August 1861 and April 1862 during the American Civil War in denominations of 5, 10, and 20 US$. government placed the Demand Notes into circulation by using them to pay expenses incurred during the Civil War including the salaries of its workers and military personnel.

Demand Notes were the first type of paper money issued by the United States in the sense that they were the first in the series of emissions which has continuously achieved wide circulation down to the present day. Because of the distinctive green ink on their reverse, and because state-chartered bank and Confederate notes of the day typically had blank reverse, the Demand Notes were nicknamed "greenbacks", a name later inherited by Legal Tender and Federal Reserve Notes. When Demand Notes were discontinued, their successors, the Legal Tender Notes, could not be used to pay import duties, a large part of the U. federal tax base at the time, and thus Demand Notes took precedence.

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