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History of Money
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First Bank of U.S
In 1791, the First Bank of the US was chartered. The bank was run by Alexzander Hamelton. The bank had 8 branches and its bank notes became the most common form of currency up until the bank's charter ended in 1811. -
U.S Mint
The Federal Monetary System was established with the creation of the U.S. Mint in Philadelphia. The first American coins were minted in 1793. -
First Forms of Currency
In 1816, in England, gold became the standard of value in England which tied banks notes directly to gold, meaning they were backed by gold. In 1900 in the US, the Gold Standard Act was enacted which helped lead to a Centralized Bank in the US. -
2nd Bank of US
In 1816, the 2nd Bank of the Us was chartered for 20 years. It was controlled by Thomas Biddle. Thomas Biddle did great things for the bank and the banking system. However, he put a lot of restrictions on the state banks which President Jackson did not like, thus, Jackson did everything he could to destroy centralized banking. -
Free Banking Era
The free banking era began in 1836. This was a time where banks issued their own notes and were redeemable for gold. -
State Bank Notes
Due to the minimum regulation, 1,600 local state-chartered and private banks issued paper money. These state bank notes, which had over 30,000 varieties of color and design, were easily counterfeited. Thus, these state bank notes lead to confusion and circulation problems -
First Legal Tender Act
On Febuary 25, 1862 Congress passed the "First Legal Tender Act". Congress passed this act in order to finance the Civil War. The act authorized congress to print $150 million in Treaurary Notes. These notes were given the name Greenbacks for their color. -
National Bank Act of 1864
After the Civil War, there was lots of inflation and numerous types of bank notes being issued by each state bank. The National Bank Act of 1864 was enacted in order to create the "comptroller of the currency". Thus a centralized bank system where there are national bank notes and the states banks where eventually closed due to taxes levied against them. -
Secret Service
The Secret Service was created in 1865 in order to fight against coumterfeiting. Counterfeiting was becoming a major problem in the US after the Civil War. -
Bureau of Engraving and Printing
The Department of the Treasury's Bureau of Engraving and Printing started printing all U.S. currency. It started printing and operating in 1877. -
Money Evolves
The first banks were mostlikely religious temples in the ancient world, and were probably established sometime during the third millennium B.C. These banks probably predated the invention of money. Deposits initially consisted of grain and later other goods such as cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. -
Federal Reserve Act of 1913
The Federal Reserve ACt of 1913 was enacted in order to create a system of banking which was both adaptable and flexible because of the severe economic panic in 1907. -
Standardized Size
In 1929, currency was reduced in size by 25 percent and standardized with uniform portraits on the front of the bills. Emblems and monuments were on the backs. -
National Motto
On July 30, 1956, the President signed a Joint Resolution declaring that the motto In God We Trust would be the national motto. The motto had been printed on U.S coins since 1864 and began being printed on paper currency in 1957. -
Gold Window
On August 8, 1971, President Nixon suspended gold payments of U.S. dollars. He did this in order to help solve the inflation crisis. Ultimately, closing the “gold window” effectively ended all ties between the U.S. dollar and either gold or silver. -
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
The FIRREA was enacted in 1989 due to the savings and loan crsis of the 1980's. -
The State Quarters
The program is scheduled to run from 1999 until 2008, with five new quarters released every year over ten years. The 50 new quarters will feature a design that honors each state's unique history and tradition. The quarters are being released in the order that the states joined the union. Although the program was only suppose to run until 2008, it is still running today. -
War In Iraq
War! The war in Iraq cost and continues to cost the U.S billions of dollars. Because of the war, the U.S is in more debt than we can afford to pay off. The war is being payed by taxpayers money, donations, and loans. The war is hurting the many people in the U.S financially. -
New Notes
On March 13, 2008 the new $5 notes went into circulation. The new notes have better security features to prevent counterfieting. Features such as 2 watermarks, security thread, different colors, symbols, enlarged and raised portrate, color shifting inc, and micro printing. The new $100 note has 3-D security ribbon. -
Money After WWI
Shortly after WWI, Germany was overwhelmed with debt and had no choice but to print paper money in mass production.
