Student or Learner
Why they need to "back it in specie or hard money"?
What does "back" mean here in the sentence?
Thanks in advance.
But a number of factors conspired to create this country’s first great economic crisis. Perpetual wars between France and England finally ended in 1815, spurring economic growth in those countries that competed with U.S. production. U.S. banks issued their own currency with little ability to back it in specie or hard money, meaning gold and silver coins. When they needed more money, they simply printed more, which resulted in rapid inflation.
In the situation described, the governments did NOT have gold or silver to back up their money. So, when they just printed up more paper money, it quickly became worthless; so, the rapid inflation.