Printing Problems: How the Civil War Made ‘Fake Money’ a Real Issue

Counterfeiting Chaos During the Civil War: The Birth of the Secret Service

During the American Civil War, the nation faced not only the horrors of war but also a silent enemy that threatened its economic stability—counterfeit currency. By the war’s end, it’s estimated that a staggering one-third to one-half of all U.S. paper money in circulation was fake, plunging the country into financial chaos.

Counterfeiters of the time were skilled craftsmen, producing counterfeit bills that were often nearly indistinguishable from genuine currency. This widespread counterfeiting had dire consequences, shaking the public’s trust in the nation’s monetary system and causing economic turmoil.

In response to this growing crisis, the U.S. government took a bold step in 1865, creating the Secret Service Division. Initially established as part of the Department of the Treasury, the Secret Service’s primary mission was to suppress counterfeit currency. Their agents were tasked with tracking down and apprehending counterfeiters, a mission that would soon expand to encompass protecting high-level government officials, including the President.

The creation of the Secret Service marked a turning point in the fight against counterfeiters. Over time, their dedicated efforts and evolving tactics successfully reduced counterfeiting and restored faith in the U.S. dollar. Today, the Secret Service continues to safeguard our financial systems and protect our leaders, serving as a vital guardian of the nation’s security.

In the midst of a war that tested the nation’s strength and unity, the battle against counterfeit currency highlighted the importance of maintaining trust in our financial institutions—a lesson that still resonates today.