In the payments system, for example, state bank notes were subject to devaluation in response to credit risk and to counterfeiting, creating a significant burden on local and interstate commerce. In 1863 and 1865, the National Bank Acts permitted the federal government to charter national banks and allowed these banks to issue national bank notes backed by federal bonds.
The collateralization of national bank notes with US government bonds, along with a 10 percent tax on state notes, expedited the acceptance of national bank notes and quickly eliminated state notes from circulation. In addition, the United States Treasury also began directly issuing notes backed by gold in the 1870s. These developments were important first steps in unifying the national payments system.