The outbreak of the Civil War shook public confidence in the Union, and citizens began hoarding specie, gold and silver coins. In late December 1861, banks and then the federal Treasury stopped paying out gold at face value. By mid-1862, all federal coins, even the base metal cent, had vanished from commerce in much of the country. The exception was the Far West, where for the most part, only gold and silver were acceptable currencies, and paper money traded at a discount. In the rest of the nation, gold and silver coins could be purchased from banks, exchange agents, and from the Treasury for a premium in the new greenbacks the government began to issue to fill the gap in commerce and finance the war.