Shinplasters and Greenbacks  The Origin of the Specie      Before 1863, the Federal government did not issue    paper money . The Federal government minted coins only , referred to in bulk as “specie.”      Specie was real money; “bank notes,” paper money issued by banks  promised payment to the bearer in specie when presented.   President Andrew  J ackson’s  vigorous campaign in the 1830s to  create  a national bank had been bitterly fought and defeated by the banks.  Now, they remained  lightly regulated if at all, so some banks reserved adequate amounts of specie in their vaults to cover bank notes they  issued,  and others did not.        This produced a dizzying amount of exchange rates  for people carrying paper money.  Newspapers published exchange rates – c alled discount rates—of banks from one state to the other. South Carolina banks might  be ...