The History of Banking

  • First Colonial Notes

    First Colonial Notes
    The first paper money is introduced to the Colonies by the Massachusetts Bay Colony .
  • An Early Start To Fight Counterfeiting

    An Early Start To Fight Counterfeiting
    Benjamin Franklin's printing firm printed colonial notes with natural prints. This was his way of trying to fight counterfeiting.
  • Continental Currency

    Continental Currency
    To fund the Revolutionary War, American colonists issued paper money backed by the "anticipation of tax revenue".
  • First National Bank

    First National Bank
    Congress chartered the Bank of North America in Philadelphia as the nation's first "real" bank.
  • Dollar

    Continental Congress decided that the official monetary system would be based on the dollar.
  • Monetary System

    Monetary System
    The federal monetary system was established with the creation of the U.S. Mint in Philadelphia. The first American coins were made in 1793.
  • National Bank

    National Bank
    The 20 year charter for the First National Bank is up.
  • Second National Bank

    Second National Bank
    After five years, the National Bank is installed once again
  • State Bank Notes

    State Bank Notes
    With minimum regulation, a proliferation of 1,600 local state-chartered, private banks now issued paper money. State bank notes, with over 30,000 varieties of color and design, were easily counterfeited. That, along with bank failures, caused confusion and circulation problems.
  • Civil War

    Civil War
    On the brink of bankruptcy and pressed to finance the Civil War, Congress authorized the United States Treasury to issue paper money for the first time in the form of non-interest bearing Treasury Notes called Demand Notes.
  • Greenbakcs

    Demand Notes were replaced by United States Notes. Commonly called "Greenbacks,". The Secretary of the Treasury was empowered by Congress to have notes engraved and printed, which was done by private banknote companies.
  • Secret Service Enacted

    Secret Service Enacted
    The Department of the Treasury established the United States Secret Service to control counterfeits, at that time amounting to one-third of circulated currency.
  • Federal Reserve Act

    Federal Reserve Act
    After 1893 and 1907 financial panics, the Federal Reserve Act of 1913 was passed. It created the Federal Reserve System as the nation's central bank to regulate the flow of money and credit for economic stability and growth. The system was authorized to issue Federal Reserve Notes, now the only U.S. currency produced and 99 percent of all currency in circulation.
  • Faces

    Currency was reduced in size by 25 percent and standardized with uniform portraits on the faces and emblems and monuments on the backs.
  • In God We Trust

    In God We Trust
    Paper currency was first issued with "In God We Trust" as required by Congress in 1955.
  • Countering Counterfitting

    Countering Counterfitting
    A security thread and microprinting were introduced, first in $50 and $100 notes, to deter counterfeiting by advanced copiers and printers.