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The Massachusetts Bay Colony issued the first money made from paper.
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Continental Congress started the dollar as the unit for national currency. Banks still continued to print a variety of notes.
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At this time, in the colonial period, banks were finally allowed to create their own oney. Banks now grew in popularity, and there were about 100 state banks.
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They removed over 10,000 different sizes of state bank notes to make the currency system more simple. They then issued gold certificates. These were paper currency backed by gold placed on deposit with the United States Treasury.
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In 1865, the federal government made the state banks join the National Banking System. They did this by applying a tax of 10 percent on all bank notes made by private banks.
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Currency was made smaller by 25%, and the design was made consistent. It had portraits on the front and emblems and monuments on the back.
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They inscribed "In God We Trust" on the paper money this year. So it is on all currency from 1963 until later.
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They introduced redesigned $5 and $10 bills. They made it so that it was difficult to counterfeit. They made really small print and things that can only be seen in the light.
