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The first paper money is introduced to the Colonies by the Massachusetts Bay Colony .
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Benjamin Franklin's printing firm printed colonial notes with natural prints. This was his way of trying to fight counterfeiting.
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To fund the Revolutionary War, American colonists issued paper money backed by the "anticipation of tax revenue".
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Congress chartered the Bank of North America in Philadelphia as the nation's first "real" bank.
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Continental Congress decided that the official monetary system would be based on the dollar.
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The federal monetary system was established with the creation of the U.S. Mint in Philadelphia. The first American coins were made in 1793.
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The 20 year charter for the First National Bank is up.
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After five years, the National Bank is installed once again
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With minimum regulation, a proliferation of 1,600 local state-chartered, private banks now issued paper money. State bank notes, with over 30,000 varieties of color and design, were easily counterfeited. That, along with bank failures, caused confusion and circulation problems.
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On the brink of bankruptcy and pressed to finance the Civil War, Congress authorized the United States Treasury to issue paper money for the first time in the form of non-interest bearing Treasury Notes called Demand Notes.
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Demand Notes were replaced by United States Notes. Commonly called "Greenbacks,". The Secretary of the Treasury was empowered by Congress to have notes engraved and printed, which was done by private banknote companies.
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The Department of the Treasury established the United States Secret Service to control counterfeits, at that time amounting to one-third of circulated currency.
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After 1893 and 1907 financial panics, the Federal Reserve Act of 1913 was passed. It created the Federal Reserve System as the nation's central bank to regulate the flow of money and credit for economic stability and growth. The system was authorized to issue Federal Reserve Notes, now the only U.S. currency produced and 99 percent of all currency in circulation.
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Currency was reduced in size by 25 percent and standardized with uniform portraits on the faces and emblems and monuments on the backs.
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Paper currency was first issued with "In God We Trust" as required by Congress in 1955.
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A security thread and microprinting were introduced, first in $50 and $100 notes, to deter counterfeiting by advanced copiers and printers.
