The History of United States Dollars
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The paper currency in the United States, the dollar, has an interesting history. Let us take a look at the history of dollars, which begins all the way back before the States were all created to form this country.
The first sign of paper money was in 1690. The Massachusetts Bay Colony was the first to issue this paper money. Many years later, in 1775, paper currency was issued to finance the Revolutionary War. The problem with this issue of currency was that is was based on the expectation of tax collection. These notes were also easily counterfeited.
After the Constitution was adopted, Congress chartered the first bank. It was called the Bank of the United States. The bank was charted until 1811 and authorized to issue paper currency. This institution was the first to perform the functions of a central bank.
Due to the need to finance the Civil War, Congress decided to permit the U.S. Treasury to issue non-interest bearing notes. These notes were a paper currency called Demand Notes. Large Treasury Notes in circulation were released in five issues between 1862-1923.
Between 1865 and 1933, Gold Certificates were circulated against gold coin deposits. In between this time, it was decided that the Treasury Department’s Bureau of Engraving and Printing would be solely authorized to print U.S. currency.
The Federal Reserve System was set into place in 1913, so that there would be unified regulation over money circulation and credit. Federal Reserve Notes are the paper money that we know and use today. No other U.S. currency is created or circulating.
The denominations of paper currency that are currently issued are $1, $2, $5, $10, $20, $50, and $100. Prior to 1946, there were other, higher denominations in circulation. These were $500, $1,000, $5,000, and $10,000 bills.
There is much more to the history of currency in the United States, but this post offers a nice overview of how we have come to use the dollar bills that we use today. Remember that money is not what it used to be. It has changed over time.
Tags: dollar bills, Federal Reserve notes, gold certificate, history, history of dollars, paper currency