-
Continental Congress pays for Revolutionary War
The Continental Congress needed a way to finance the Revolutionary War. The currency was the Spanish milled dollars. The problem with this currency, however, was the fact that it could be counterfeited easily, which led to the value to decrease. The phrase, "not worth a continental," comes from this currency. -
Period: to
Independence-Present
-
The Bank of North America opens
The Bank of North America opened as a result to support the financial operations of the government. There was debate, however, whether or not it was established as a way to make money. Farmers were not in favor of the bank, but merchants were. -
The Dollar is created
Congress established the dollar bill as the first bill of the United States. During this time, the were several different types of printed notes which created confusion. This was the first printed dollar of the United States. -
First Central Bank of America opens
The Central Bank of America was established in February of 1791 and remained open until 1811 when the United States did not renew the charter. The bank was able to perform basic bank functions. When the bank closed, it was actually going strong, but it had to close due to unhappy people in the United States. -
United States establishes a Monetary System
The U.S. established the first monetary system as a result of the Coinage Act in 1972. This meant that coins were divided in values and had set values for gold, silver, or copper coins. This act started the currency for the United States and is still in use today. -
Free Banking
The Second Bank of the United States was turned down for a renewel of their charter. At this time, banks began operating without federal regulation. As a result, counterfeiting became more reocurring. -
Greenbacks are printed
Greenbacks were printed as a result to try to finance the Civil War.The government had run of out money, and so issued that paper currency be printed. The value of the paper depended on the people's trust in the U.S. that it could be traded in later for coin. -
National Banking Act
In 1863, Congress passed the National Banking Act as proposed by President Lincoln. This act established a national banking system and a more reliable currency source. Banks were required to buy securities into the money. -
Pennies made legal
The goverment started producing one cent coins known as pennies. This became legal as a part of the Coinage Act of 1864. -
After the Civil War
After the Civil War, 33% of the bills were counterfeit. This devasted the American economy. The Secret Service was created as an attempt to stop the counterfeiting. -
Metal comes back
The government attempted to issue currency in exchange for valuable metals. The silver certificates were in circulation during the 20th centry in exchange for silver dollars. This circulation continued to occur until silver prices rose in the open market. -
Federal Reserve
The Federal Reserve was created as an attempt to control the instability in the economy. The Federal Reserve was the country's central banking system. It controlled the management of the country's credit and supply of money. -
Some Small Changes
In 1929 changes were made to the American dollar bill. The size was made smaller in order to be easier to handle but more importantly, less cost to make. Also, another change made it manditory to have a portrait on the front of the bill, while having a picture of a monument on the back. -
In God We Trust
"In God We Trust," was first printed on the dollar bills in 1957. It appears on all currencies made later than 1963. However, controvies have become more apparent today as some people do not believe in "God." -
Lincoln Memorial
The Lincoln Memorial was added to the back of the pennies in honor of his 150th birthday. This is the first coin to have the same person on both sides. It is so detailed that Lincoln's statue is in the memorial. -
An attempt to stop counterfeiting
As counterfeiting became more apparent, the government began to make changes in an attemp to stop the counterfeit money. One change, the portrait was made bigger and placed off center. Also, the government installed water marks, and color changing ink on the bills. -
Just how many coins are in circulation?
According to the U.S. Treasury there are 10,257,400,000pennies, 1,323,672,000 nickels, 2,335,300,000 dimes, 1,867,400,000 quarters, and 30,710,000 half-dollars. -
State Quarter Act
The goverment began to issue new quarters with the 50 states on the back of each quarter. The goverment made 5 new quarters every 10 years. Each state quarter has certain symbols pertaining to the state in which it is made for. -
Errors? Not likely!
Out of 28 billion minted coins, only 19 coins have been found to have errors in them. -
Bill Redesign
Starting with the $20 bill, the goverment began redesigning all of the dollar bills as another attempt to stay ahead of counterfeiting. The government began printing colors on the bills not only for counterfeiting, but also to help the visually impaired. A bald eagle was also printed on the bills.
