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There were other financial consequences of the shift from the specie to the paper standard, however, that were not unimportant, though they were indirect and difficult to gauge. Two of the most prominent must be indicated.
1. It is probable that not a little of the lavishness with which public funds were appropriated by Congress during the war can be traced to the paper-money policy.
2. If the paper currency tempted the Government to reckless expenditures, it also predisposed the people to submit more willingly to heavy taxation. It has been remarked several times that the advance of money wages and of money prices made most people feel wealthier, and, feeling wealthier, they were less inclined to grumble over the taxes.
While these indirect effects of the paper currency on expenditures and receipts could not by any system of bookkeeping be brought to definite quantitative statement, it is probable that their net result was unfavorable to the treasury.
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