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Franklin's Unique Counterfeit Deterrent
Benjamin Franklin's printing firm in Philadelphia printed colonial bills with nature prints---unique raised impressions of patterns cast from actual leaves. This process added an innovative and effective counterfeit deterrent to bills, not completely understood until centuries later. -
Continental Currency
The Continental Congress issued paper currency to finance the Revolutionary War. Continental currency was denominated in Spanish milled dollars. Without solid backing and easily counterfeited, the bills quickly lost their value, giving rise to the phrase "not worth a Continental." -
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US Economic Institutions
Here is a graphic representation of the history of money and banks in the United States. -
The Dollar
Congress adopted the dollar as the money unit of the United States. -
First Central Bank
Congress chartered the Bank of the United States for a 20-year period to serve as the U.S. Treasury's fiscal agent. The bank was the first to perform central bank functions for the government and operated until 1811, when Congress declined to renew the bank's charter. Recognizing that a central banking system was still necessary to meet the nation's financial needs, Congress chartered a second Bank of the United States in 1816 for another 20-year period. -
National Bank #2
Second National Bank opens for business -
Federal Bank
The Senate passes a bill, sponsored by the Whig party, to revive the 2nd National Bank by creating a Federal Bank that would be called The Fiscal Bank of the United States. (A State chartered Bank for the District of Columbia that would be used by the U.S. Government. ) President Tyler vetoes the bill as unconstitutional. -
The Design
By 1862, the design of U.S. currency incorporated fine-line engraving, intricate geometric lathe work patterns, a Treasury seal, and engraved signatures to aid in counterfeit deterrence. Since that time, the U.S. Treasury has continued to add features to thwart counterfeiting. -
National banking act
The national banking act of 1863 was passed to established some measure of currency stability for the growing nation, bank runs and financial panics continued to plague the economy -
Secret Service Involement
The United States Secret Service was established as a bureau of the Treasury for the purpose of controlling the counterfeiters whose activities were destroying the public's confidence in the nation's currency. -
Paper Currency with Background Color
The last United States paper money printed with background color was the $20 Gold Certificate, Series 1905, which had a golden tint and a red seal and serial number -
A Very Bad Year
By this time, most Americans were calling for reform of the banking system, but the structure of that reform was cause for deep division among the country’s citizens. Conservatives and powerful “money trusts” in the big eastern cities were vehemently opposed by “progressives.” But there was a growing consensus among all Americans that a central banking authority was needed to ensure a healthy banking system and provide for an elastic currency. -
Federal Reserve
The Federal Reserve was established in 1913, before this it was known as the Third National bank. The federal Reserve set an all around currency making spending and recieving money easier for the whole. -
Standardized Design
The first sweeping change to affect the appearance of all paper money occurred in 1929. In an effort to lower manufacturing costs, all currency was reduced in size by about 30 percent. In addition, standardized designs were instituted for each denomination across all classes of currency, decreasing the number of different designs in circulation. This standardization made it easier for the public to distinguish between genuine and counterfeit bills. -
In God We Trust
The use of the National Motto In God We Trust on all currency has been required by law since 1955. It first appeared on paper money with the issuance of the $1 Silver Certificates, Series 1957, and began appearing on Federal Reserve Notes with the 1963 Series. -
Security
A security thread and microprinting were introduced to deter counterfeiting by advanced copiers and printers. The features first appeared in Series 1990 $100 bills. By Series 1993, the features appeared on all denominations except $1 and $2 bills. -
Redisign
In the first significant design change in 67 years, United States currency was redesigned to incorporate a series of new counterfeit deterrents. The new bills were issued beginning with the $100 bill in 1996, followed by the $50 in 1997, the $20 in 1998 and the $10 and $5 bills in 2000. The Bureau of Engraving and Printing announced that new designs would be undertaken every 7-10 years to stay ahead of currency counterfeiters. -
Homeland Security
Protecting the security of the dollar against counterfeiting takes its place side-by-side with other homeland security efforts, as the U.S. Secret Service is integrated into the new U.S. Department of Homeland Security.
