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History of U.S. Currency

Mr. James Econ Class: Final Project

morgan smith

on 3 June 2013

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Transcript of History of U.S. Currency

History of U.S. Currency By: Morgan Smith 1785 - 1905 1913: Federal Reserve Act 2003: Secret Service Integrated Into Homeland Security Department 1877: Bureau of Engraving and Printing 1792: Monetary System 1863: National Banking System 1785: The Dollar 1690: Colonial Bills 1775: Continental Currency 1739: Franklin's Unique Counterfeit Deterrent 1690 - 1781 One of the Thirteen Original Colonies, The Massachusetts Bay Colony, decided to issue the first paper money. It was to cover the costs of military expeditions. This practice of using paper bills eventually spread to the other Colonies. Benjamin Franklin created a printing firm in Philadelphia. Here, they printed colonial bills with nature prints. These unique bills displayed impressions of patterns cast from actual leaves. This process added a change and successful counterfeit deterrent to bills. It was not completely understood until many centuries later. The Continental Congress had issued paper currency to finance the Revolutionary War. The Continental currency was labeled in Spanish milled dollars. Without a solid backing, it was easily counterfeited. The bills lost their value quite quickly, which brought about the phrase "not worth a Continental." Congress adopted the dollar as the official unit of money in the United States. The Coinage Act of 1792 created the U.S. Mint. It established a federal monetary system. Setting denominations for coins, and gave specific values to each coin of gold, copper, or silver. Authorizing the U.S. Treasury to oversee the issuing of National Banknotes, Congress also established a national banking system. The system established many Federal guidelines for chartering and regulating "national" banks. It also authorized those banks to issue national currency that was secured by the purchase of United States bonds. A program called, "The Department of the Treasury's Bureau of Engraving and Printing", were the ones to began printing all United States currency. The Federal Reserve Act of 1913 created the Federal Reserve as the nation's central bank. It provided for a national banking system that happened to be more responsive to the always fluctuating monetary needs of the country. The Federal Reserve Board did issue new currency called Federal Reserve Notes, these notes are bills that are larger than today's bills. They featured a portrait of President Andrew Jackson on the face of the bill. The idea of security thread and microprinting were introduced as a way to deter counterfeiting. It advanced copiers and printers. The features first appeared in Series 1990 $100 bills. By the time the Series 1993 came about, the features appeared on all denominations except $1 and $2 bills. The homeland security starts protecting the security of the dollar against counterfeiting along with with other homeland security efforts. This occurs as the U.S. Secret Service is integrated into the new U.S. Department of Homeland Security. 1763: British Ban After years of restrictions on the colonial paper currency, Britain finally decided to order a complete ban on the issuing of paper money by the U.S. Colonies. 1781: The Bank of North America Congress began to charter the Bank of North America in Philadelphia as the first national bank. It was created to support the financial functions of the emerging government. 1791: The First Central Bank Congress chartered the Bank of the United States for a period of 20 years to serve as the U.S. Treasury's financial agent. This bank was the first to execute central bank functions for the government. It operated until 1811, when the Congress decided against renewing the bank's charter. Recognizing that the banking system was necessary to meet the nation's monetary needs, Congress decided to charter a second Bank of the United States in 1816 for an additional 20-year period. 1861: Greenbacks In 1861, the first general circulation of any kind of paper money by the government occurred. It was originally to finance the Civil War, and this pressed Congress to authorize the U.S. Treasury to issue non-interest-bearing Demand Bills. They were printed green, henceforth the nickname "greenbacks". Today, any U.S. currency issued remains valid, even the money issued since 1861. It is all redeemable at full face value. 1862: The Design The design of U.S. currency, by 1862, incorporated fine-line engraving, detailed geometric lathe work designs, a Treasury seal, and engraved signatures to support in the counterfeit deterrence. Since then, the U.S. Treasury has continued to add features to prevent counterfeiting. 1905: Paper Currency with Background Color The $20 Gold Certificate was the last United States paper money printed with background color. It was in the series of 1905. It had a golden tint and a red seal and serial number. 1913 - 2006 What is Currency? It is a system of money used in particular countries. Commonly used to purchase items. Currency began with livestock and plants, then moved to furs and other wanted items, to buck skin, which gives the name of a dollar to be "a buck", and in the end comes about the printing of money and pressing of coins because it is easier. Why did it change? Money began to change because of counterfeiting. It was hard to keep track of money and what was the "real deal". Making the money unique helped a lot, but their were still counterfeiters, so every 7-10 years the design will change to ensure security of money. 1957: In God We Trust The National Motto is: In God We Trust. It is on all currency, and has been required by law since 1955. It first appeared on paper money when the $1 Silver Certificates were issued, the Series 1957. Also, it began appearing on Federal Reserve Notes with the 1963 Series. 1990: Security Thread and Microprinting 1996: Currency Redesign The first significant design change happened 67 years after currency had become popular. The 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 then announced that new designs would be undertaken every 7-10 years to stay ahead of currency counterfeiters. 2006: The New $5 Bill: Safer. Smarter. More Secure. On June 29, 2006, the U.S. government announced that it would redesign the $5 bill. It was a part of the ongoing efforts to enhance the security of U.S. currency. How did it begin?
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