Posts Tagged ‘gold’

The History of the Paper Dollar

Saturday, February 28th, 2009

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The Massachusetts Bay Colony was the first of the thirteen colonies to issue permanently circulating banknotes in 1690. The reason behind this was because the paper could be more readily printed and circulated than gold coin. Many of these early bills were marked “Tis Death to Counterfeit.” In the early 1700s, each of the thirteen colonies had issued their own banknotes called “colonial script.” 1789 brought about the First Band of the United States which issued fixed denominations and printed banknotes until 1811 when it closed. From 1816 to 1841, the (you guessed it) Second Bank of the United States took on the responsibilities of printing banknotes.


The civil war, in 1861, needed to be funded with money that there just wasn’t enough of. In 1862, under Abraham Lincoln, the demand notes were issued, taking the place of interest bearing currency. Some necessities were added and changed in the next few years in order to stop counterfeiters. The new “Greenbacks” had an engraved Treasury seal and red and blue fibers in the paper which made them (at the time) very difficult to counterfeit which would cost the banks more money. Gold certificates were also issued against gold coin and bullion and were still in circulation until 1933 as well as silver certificates being issued for silver dollars until 1957. 1865 brought on the need for a Secret Service to police and control counterfeiters. How much was that really needed and how much of the US’s money was counterfeit? Oh only about one-third!


The one dollar United States Note was redesigned with a portrait of George Washington in the center and a vignette of Christopher Columbus. The back of the note also featured green and blue tinting. In 1880 the red floral design was added around the words “One Dollar” and “Washington D.C.” From 1890 to 1899 the gold and silver certificates were redesigned repeatedly in order to continue to make them harder and harder to be counterfeited. In 1910 the Department of the Treasury’s Bureau of Engraving and Printing took on all currency production functions including engraving, printing and processing. The Federal Reserve Act of 1913 created the Federal Reserve System. This means that the Federal Reserve became the central bank, regulating the flow of money. The Federal Reserve also became, to this day, the only authorized entity to issue Federal Reserve Notes (also known as, The Dollar(s)) which are the only U.S. currency produced and 99% of all currency in circulation!


“In God We Trust” No matter your religion, you know this phrase. This phrase was required by Congress in 1955 to be on every piece of currency and to this day, it still is. The last major change that was made was the microprinted security thread which was first introduced in 1990. It started with the $100 bills and the $50 bills, then eventually was introduced into the $20s, $10s, $5s, and $1s. Take a look at the money in your wallet. Now you know part of the long road traveled it took to get there.

A Backyard Full of CASH???

Sunday, December 14th, 2008

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dollar cash goldAs we enter into what is expected to be one of the largest recessions in our nation’s history, individuals throughout the United States are faced with the question: “what should I do with my money”? During the Great Depression, many individuals hid cans of coins in their backyards due to their mistrust of the banking institutions. More and more individuals have lost confidence in our current banking system and have begun to question the safety of one of their most safely guarded possessions: money. But what is the best way to protect one’s cash?

Over the years, we’ve all heard of random places to hide money: under the bed, in the freezer, buried in the backyard, in the Bible but where is the best place to put it? My grandmother hid cash for years in the back of her closet between some old quilts that were never used. No one knew about this until after the passed. My husband’s grand-father hid his money throughout his home. He told his widow from his deathbed to throw nothing away in that house without fully going through it. Still to the day, she’ll be going through some old book or other item and stumble upon a $100 bill. Perhaps this was his way of always making sure she was taken care of, but more than likely; he felt it was safer than putting his money in a bank. A close family friend is said to have “millions” of dollars buried in his backyard under a fig tree and while I don’t know if it’s true or not, it does make for a good legend. I’ve often wondered if upon his death, anyone will visit his backyard with a shovel to look for buried treasure!

Of course, burying cash in the backyard is nothing new. During the Great Depression Era, it was common for folks to make “treasure maps” and place their valuables in the ground in coffee cans or old metal boxes. Today a “Ziploc” brand bag, placed in a piece of PVC pipe is a common way to bury cash five feet into the ground. In fact, there’s even an “invention” floating around on eBay called the “Midnight Gardner”. The device is actually a simple twelve by four inch capped, watertight PVC pipe which is said to hold as much as $4,000 in gold, silver, or cash.

Is it a good idea to bury cash? Some say it’s not as the paper money will lose value due to inflation. These individuals recommend investing in gold bullion and burying that as it will hold it value better than cash. There are those that say if the economy got to the point that money invested in banks was gone, that paper money would hold no value either. Others still insist that burying money/gold/etc is a bad idea because it can be easily forgotten or lost. Then, there are those that say that any attempt at “playing it safe” and pulling money out of the economy only worsens the effect of the recession.

In the end, I’m of the opinion that what to do with money is a personal decision and should be made by each individual with regards to what they feel is the safest route for them. As for me, I’ve got a personal stock of cash that I’m seeking a place to hide away for a “rainy day”.

Silver Certificates

Sunday, September 7th, 2008

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silver certificatesThe first silver certificates were printed in the United States in response to people who were upset with the Fourth Coinage Act that put the United States money on the gold standard. The certificate was designed to match the same value in silver coins. For example, one $50.00 Silver Certificate would be worth 50 silver dollars.

The seal and serial numbers on a Silver Certificate were printed in red, brown, and blue until Series 1899. At that time the seal and color numbers were permanently changed to blue for the $1, $2, and $5 dollar denominations.

In World War II, the government issued a 1935a Silver Certificate with a brown seal for Hawaii, and a yellow seal for North Africa distributions. The reasoning behind this move was if the money fell into enemy hands it could be easily identified and cancelled to prevent monetary losses in the United States.

In 1928, the United States Treasury reduced the size of the money to speed up transactions and cut the costs of printing. Thus, for Series 1928 only $1 Silver Certificates were printed.

In 1929 the Great Depression hit the United States and the country fell into economic disaster. The majority of citizens blamed the ever changing price of gold for the depression. President Franklin Roosevelt agreed and persuaded Congress to recall all gold coins, gold bullion, and gold certificates. At this time Congress very quietly placed the United States on the silver standard. May 12th, 1933, the Agricultural Adjustment Act was passed. This Act included a clause that allowed for huge amounts of silver to be pumped into the economy to replace the gold.

In 1934, Congress passed a low that changed the obligation on Silver Certificates to denote the current location of the silver. This law also gave the government the power to exchange silver bullion for these certificates, not just silver dollars. The 1928 one-dollar Silver Certificates were phased out and replaced with the certificates of Series 1934.

In March of 1964, Secretary of the Treasury, C. Douglas Dillion stopped the ability of citizens to redeem their Silver Certificates for Silver Dollars. Then in the 1970’s huge numbers of silver dollars in the vaults of the U.S. Mints were sold to collectors at collector value.

Finally on June 4, 1963 Congress abolished Silver Certificates and a citizen could no longer redeem their Silver Certificates for silver on June 24, 1968. This act pretty much ended the life of Silver Certificates. Kind of sad, really.

Do you have any Silver Certificates? If so, tell us about them or post a picture!