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The First Currency
The Massachussetts Bay Colony issued the colonial notes which was the nation's first paper money. Previously, Americans had been using Spanish, English, and and French currencies. This idea of issuing bills spread to other colonies. -
Continental Currency
The Continental Congress issued currency known as the continental currency. This currency was used to finance the Revolutionary War. The currency did not have solid backing of gold or silver and was easily counterfeited, losing its value quickly. -
The Dollar
The dollar was adopted by Congress as the money unit of the United States. -
US Mint and Monetary System
After the creation of the US mint in Philadelphia under the Coinage Act of 1792, a federal monetary system was established. -
Greenbacks
Congress decided to print money during this time because of the CIvil War. They authorized printing $60 million demand notes, also known as greenbacks because of their distinguishable color. The color of this currency helped distinguish between state notes already in circulation. -
National Banking System
Because many people feared greenbacks losing their value, the National Banking System was established. These national banks issued National Bank notes, which were backed by US government bonds. Government hoped that regular inspections and standards would help gain peoples' trust for this system and its currency. -
Treasury coin notes
The federal government printed treasury coin notes, which were paper currency issued by the Treasury that was redeemable in both gold and silver. This was the fifth and last type of paper currency to be issued before the new banking system took over in 1913. -
Federal Reserve System
Congress created the Federal Reserve System, or Fed, as the first central bank. National banks and state charter banks could become "members" of the Fed and were allowed to purchase stock in the system. This made the Fed owned by banks, not the government. The Fed issued Federal Reserve notes, which replaced all other federal currency. -
Redesigned
The US currency udergoes its first significant design change in 67 years. A series of new counterfeit deterrents were included in the new design. The Bureau of Engraving and Printing announced that this would occur every 7-10 years.
