US money: paper dollars and coins

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The dollar is today the most popular currency in the world. This currency is known everywhere. What money is in the US now? How did they come about?

History of occurrence

It all started with thalers, more precisely with "Joachimsthaler". This is what the silver coins from the mine of the city of Jachymov (modern Czech Republic) were called. The name was quickly picked up by the Swedes, the British, the Dutch, the Italians, the Flemings, modifying the sound in their own way. So, in colonial America, the British first called Spanish coins a dollar. The US dollar was declared as the native currency of the United States in 1785.

Paper money in the form of bonds appeared in Massachusetts as early as 1690. They were re-issued in 1703, and a few years later paper bills spread throughout America. During the War of Independence, the "continental dollar" even appeared, which forced metal coins out of circulation.

The main problem with such money was their rapid depreciation. By 1781, the currency had devalued by about 40 times. Six years later, a law was passed on the mandatory reinforcement of paper banknotes with gold or silver. In 1792, the first minted US coins appeared.

New story

Despite all the measures thatundertook by the government, American money was not stable and standard. Therefore, in 1861, a single currency appeared, the printing of which was entrusted to the American Bank Note Co. Issued denominations of 5, 10, 20 dollars had a green color and immediately received the name "greenbacks".

In 1913, US money is issued by specially created Federal Reserve Banks. For many years, the dollar has maintained stability. It was shaken by the Great Depression in 1933. However, after the Second World War, the role of the United States in world politics increased significantly, and American money began to be actively sent to European countries. Dollars soon became the main currency of "old Europe", displacing even British pounds sterling.

In 1971, the world's reserve currency begins to devalue again. Some time later, at the initiative of President Nixon, the backing of the dollar with gold was canceled. The American currency already had a certain credibility, so the depreciation did not affect its world status in any way. She remained in reserve.

Dollar Today

Currently, the dollar is considered the national currency of the United States. In addition, back in the 19th-20th centuries, it became the unofficial currency of many other countries. So, Canada declared it the national currency back in 1857. Now US money has national status in El Salvador, Panama, Palau, Bermuda, the Marshall Islands, the Virgin Islands, East Timor, etc. In some countries, the dollar is quite legally usedin parallel with the national currency, for example, it used to be so in Zimbabwe.

In 1913, the Federal Reserve System was created, which to this day is responsible for issuing American money for printing. Banknotes and coins are produced according to the needs of the country, about half of the total amount of printed dollars is sent abroad. Only 1% of the money produced is not in free circulation. The lion's share of banknotes is printed to replace worn copies.

Paper banknotes

All banknotes that have been issued since 1861 are still considered valid and legal. US paper money is issued in denominations of 1, 2, 5, 10, 20, 50, 100 dollars. They rotate freely.

There are also banknotes in denominations of 500, 1000, and even 10,000. But they are gradually being withdrawn from circulation due to inconvenience in use. Due to this, the cost of such banknotes at auctions is much higher than their face value. There were just over 100 of the $10,000 bills in circulation. In 1934, the US Reserve Bank issued a $100,000 note, although it was used exclusively for settlements within the Federal Reserve System.

Absolutely all banknotes have the same size. Their weight is approximately 1 gram. In 1928, a general concept for the appearance of the dollar was developed. Since then, US money has placed portraits of presidents and important statesmen. So, on banknotes the first American Minister of Finance Hamilton, John Marshall - the chairman of the Supreme Court is depicted. On theThe $1 note depicts the first President of the United States, George Washington.

On the other side of the national banknote, important historical symbols of the country are depicted. On the reverse side of the 1 dollar bill is the main motto of the United States: "In God We Trust", on the 5 dollar bill is the Lincoln Memorial, the Treasury building is depicted on 10, and the White House is depicted on 20 dollars. The rarest bill in circulation is $2, on its reverse side the act of signing the Declaration of Independence of the United States is depicted.

Coins

Each American coin, depending on the face value, has its own everyday name. Currently, there are 1 cent coins in circulation, which are otherwise called “penny”, a coin of 5 cents (nickel), 10 cents (dime), 25 cents (quarter), 1 dollar (bucks). There are also 50 cent coins called "haf". They are produced in small quantities, mainly for collectors.

US coins are minted by several mints in San Francisco, Denver, West Point, New Orleans and Philadelphia. Each of them leaves a distinctive sign in the form of English letters P, S, W, O, D.

The first US coins, starting from 1792, were minted from gold and silver, in a ratio of 1 to 15. The inscription "Freedom" and symbols associated with this concept were required to be on the coins. The image of an eagle was placed on the reverse side. Now only collectible coins are made from precious metals, for the rest they use zinc, nickel alloy andbrass.

Expensive and rare coins

One fact in 1853 provoked the appearance of a coin of 3 cents, which is considered rare. It was to this value that the price of a postage stamp fell. They ceased to be minted in 1889 and are almost impossible to find.

In 1848, the "gold rush" begins in California, so in 1849 a decision is made to issue new gold coins in denominations of 1 and 20 dollars. After the Great Depression, gold coins were withdrawn from circulation, and the most expensive of them is now considered to be 20 dollars of 1933 issue.

After her, the most expensive American coins are the 1804 silver dollar, which sold for 4 million, as well as 1913 5 cents, issued in only five copies (each of which costs about 4 million).