Who invented the dollar: history, stages and evolution

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

The dollar is almost the most popular and desired currency in the world. Recently, the market has been gradually flooded with the euro, which claims to world domination. However, the old "green" dollar is not losing ground yet. Perhaps the one who invented the dollar did not count on such a stunning reputation for his offspring.

The world's most famous currencies

Before we look at a brief history of the emergence of the dollar, I would like to dwell a little on the money resources of the world as a whole. Today, almost all European countries that are members of the European Union are gradually switching to a common currency - the euro. But many still use national banknotes along with the generally recognized ones.

The most famous currencies in the world are:

• Euro is the single money of the Eurozone countries. Introduced into non-cash circulation on January 1, 1999, the currency has been actively used by the population of the European Union since the beginning of 2002.
• US dollars, despite everything, are still competitive money.

• The pound sterling has always been the national currency of Great Britain. Regardless of whether the United Kingdom was part of the European Union, or decided to become an independent state again, conservative British people are not willing to change the good old money.
• The Japanese currency is one of the most popular in the international Forex market.
• Although the circulation area of the Swiss franc is small (Switzerland and Liechtenstein), this money has enough power to be traded on the stock exchange.

Dollars from different countries

The one who invented the dollar did not suspect that the currency with the same name would exist not only in the United States. In addition to American, known:

Canadian dollar. It is considered a commodity currency due to the large supply of raw materials and energy resources of the North American state. The Canadian dollar acquired its modern form in 1958. There are such denominations of banknotes: 5, 10, 25, 50 and 100 C$. Metal money is also issued

• Australian dollar. The currency circulates on the territory of the countries of the Commonwe alth of Australia - Cocos and Christmas Islands, Norfolk. Also money is officially recognized in Kiribati, Nauru and Tuvalu. The Australian dollar is denoted by the symbols A$ or $A, less often - AU$ and $AU. Banknotes in their modern form appeared in 1966. Today, the following denominations of banknotes are issued: 5, 10, 20, 50 and 100 A$. There are also metal dollars.
• New Zealand dollars - statethe currency of the countries that are members of the New Zealand Association: the state of Niue (Savage), the Cook Islands, the territory of Takelau, the Pitcairn Islands (the territory of Great Britain). The New Zealand dollar is designated as NZ$, the local name for the currency is kiwi. Modern money was adopted in 1967. Issued in denominations of 5, 10, 20, 50 and 100 NZ$, there are also metal ones.
• The Hong Kong dollar is the currency of the administrative region of China, introduced into use as a result of the Sino-British agreement. With the participation of this money, bidding is carried out between Hong Kong and European countries. The currency is designated as NK$. In total, six types of banknotes are issued in denominations of 10, 20, 50, 100, 500 and 1000 NK$, as well as coins of 1, 2, 5 and 10 dollars.
• Singapore's national currency is also called the dollar. The money is known to the local population as ringgits. The Singapore dollar - SGD - is in demand in the countries of the South Asian region. In its modern form, the money came out in 1999. There are eight banknotes in denominations of 2, 5, 10, 50, 100, 1000 and 1000 SGD.
• All Brunei dollar (BND) bills feature Sultan Hassanal Bolkiah. The currency was introduced in 1967 and is pegged to Singaporean money. There are nine types of banknote denominations: 1, 5, 10, 20, 50, 100, 500, 1000, 10,000 BND.

Short biography of the man who invented the US dollar

The name of the creator of the most popular currency in the world is Oliver Pollock. For a long time he and his family lived in Ireland, but by the will of fate he was forced to emigrate to America. At first, Pollock settled in the English colony of Pennsylvania. However, soonmoved to Louisiana, New Orleans, where he developed his own business. Simultaneously with trade, he was engaged in the cultivation of indigo, tobacco and sugar cane.

During the American Revolution of 1775-1783, known as the American Revolutionary War, Pollock bought weapons from the Spanish and resold them to American patriots. He recorded all his transactions in the ledgers, where he first used the dollar sign to indicate revenue.

Dollar: the history of the sign $

The American currency had to be marked in some way so that it could be easily recognized among other money from other countries. The same Oliver Pollock invented the dollar sign on April 1, 1778. The designation of the Spanish peseta, which was in use in the United States of America at that time, served as a model for a kind of logo. Two lines over the letter S served as a symbol of the pillars of Hercules supporting the coat of arms of Spain. Two mighty columns, braided with one ribbon, marked the edge of the land, and the slogan on the ribbon read: “Nec plus ultra” - “Nowhere else.”

Soon, in order to save time, the dollar symbol began to be crossed out with one vertical line. Thus was born the well-known sign of the American currency.

Besides the official version of the appearance of the dollar sign, there are others:

• According to the German version, the name of the money comes from the German "thaler", the reverse of which was decorated with an image of a snake wrapping around a cross. Subsequently, it was this drawing that served as the basis for the dollar sign.
• British theory says that the famous symbol originated from the designation of the English shilling S, backed up by a vertical line.
• There is also a Portuguese hypothesis as to who invented the dollar sign. The symbol S is very similar to a comma separating tenths from hundredths in numbers. Probably the one who came up with the dollar sign did not know about such a story.
• The Roman version compares the dollar sign with the symbol of the ancient Roman sestertia coin - HS. In the American version, H overlapped S and was left without a vertical bar.
• There is another curious version of the origin of the sign of the American currency. The so-called slave theory says that the vertical lines symbolize the stocks in which the slaves were chained, and the letter S symbolizes the bent figure of the servant.

Why the dollar is green

It is not known exactly who came up with the design of the dollar. Perhaps it was developed by a whole group of people. However, there are interesting facts explaining why the American currency is of this color.

In 1869, an agreement was made between the United States Department of the Treasury and the Philadelphia company Messers J. M. & Cox to produce special watermarked money paper. At the same time, the country's treasury began issuing the first dollars using green ink. Thus, the one who came up with the color of the dollar automatically became the guarantor of additional currency protection against counterfeiting. With the advent of photography, old banknotes made in black were very easy to make using the photo method. In addition, the use of one color greatly saved waste.

Today, in the production of new banknotes, yellow and pink are added to the main green color.

Different names of the single currency

The word "dollar" is of Germanic origin. The German term "thaler" has various variants in other countries: tallero in Italy, daler in Spain, daler in the Scandinavian countries.

In addition to the official, there are several "folk" names of your favorite currency:

• The word "bucks" comes from the English "buckskin", which means the skin of a male deer. Such fur was a kind of currency among the Indians. By exchanging skins, the Apaches received the necessary things from Europeans - s alt, all kinds of tools, “fire water”, etc.
• Another name for the dollar - green - directly depends on its color. This is how the color of spring grass is indicated in English. This name is popular both in America and in European countries.

What American greens are made of

The first dollars were issued from a special paper produced by only one firm. The company was not authorized to sell its products to anyone other than the federal authorities of the United States. By the way, the ink formula is US Bureau of Engraving and Printing classified information.

Modern bucks are produced by two factories - it is located in Texas Fort Worth, the second - in Washington. The material used is special paper, which has enhanced protection in the form of microprinting and special threads. ExceptIn addition, in order to avoid counterfeiting, it is supposed to change the appearance of banknotes every 7-10 years. Old banknotes are gradually being phased out.

The approximate weight of one bill is one gram. The composition of the paper is as follows: 25% - linen thread, 75% - cotton fibers. Today, silk reinforcements, known before the First World War, have been replaced by synthetic threads. Banknotes are very hardy, durable and do not turn yellow over time. The approximate life of the bill is from 22 to 60 months.

Interesting facts about the buck

Having figured out what year the dollar was invented, you can tell a lot of interesting stories that have happened to it since its foundation.

All banknotes of the American currency flaunt the inscription "In God we trust." This slogan was first printed on a banknote in 1864. Father Watkinson suggested that the US Treasury mention the phrase from the national anthem "The Star-Spangled Banner", which testified that God is always on the side of the northerners. This idea was to the taste of the Secretary of the Treasury, Samon Chase, who gave the appropriate orders. At first, the motto was minted on metal dollars. Soon the phrase moved to paper banknotes

• It turns out that money is bad for he alth. According to scientists from Ohio, 94% of banknotes are breeding grounds for bacteria. 7% of banknotes contained pathogens, including bacteria that cause pneumonia and staphylococci.
• Banknotes are a fashion accessory for those who like to sniff drugs. The study of thisproblems, experts at the University of Massachusetts Dartmouth made it possible to detect traces of cocaine on 90% of bills.
• The $1 bill has an image of an unfinished pyramid, an element of the Great Seal of the United States. Above the pyramid is the inscription "Our beginnings are blessed", under the structure - the slogan "The new order of the era." In addition to the words, the "All-Seeing Eye" is depicted at the top, which is interpreted by some supporters of the Conspiracy Theory as a symbol of Freemasonry.
• Although prominent US men are usually depicted on the currency, there was a case when a 1 dollar coin was decorated with a portrait of a woman. In 1886, the image of Martha Washington was placed on the reverse next to the image of her husband, the first president of the country, George Washington.
• During the Gold Rush in 1934, the largest dollar bill was printed with a face value of one hundred thousand. The banknote had an image of President Woodrow Wilson. The money did not enter circulation, but served only for the calculations of the Reserve Bank of the Federation. Only seven such banknotes-certificates have "survived" to this day.
• The most expensive banknote, sold at the auction of collectors for two million two hundred and fifty-five thousand dollars, depicts the hero of the war between the North and the South, George Gordon Meade. The $1,000 note was issued in 1890.

Who was depicted on the first banknotes

Given the year in which the dollar was invented, one can understand which portraits of famous people of that time were placed on the front side of the bills.

• In 1918 wasIssued a banknote with a portrait of Chief Justice John Marshall. The currency had a face value of $500.
• At the same time, a thousand dollars with the image of the first Secretary of the Treasury of the United States, Alexander Hamilton, entered free circulation.
• The $500 bill, issued in 1934, features the 25th President of the United States of America, William McKinley.
• In the same 1934, a banknote was issued with a portrait of the 22nd and 24th US President Grover Cleveland.
• The 5,000th note features the fourth President of the United States, James Madison.
• The $10,000 currency is adorned with a portrait of Abraham Lincoln's head of the US Treasury (and later Supreme Court head) Salmon Chase. By the way, the first one dollar bill was also issued with his image.

Portraits of the fathers of America on modern banknotes

Each year, about 35 million bills of various denominations are released into circulation in the United States. Of these, 95% are issued to replace worn-out money. The one who invented the US dollar probably did not expect such a stunning success of his undertaking.

The basis of banknote design was approved back in 1928. The appearance of the buck was designed by an emigrant artist from Russia, Sergei Makronovsky. Since then, banknotes have been adorned with portraits of such American heroes:

• One dollar adorns the image of the country's first president, George Washington.
• The two-dollar bill features a portrait of the third president of the United States, ThomasJefferson.
• The sixteenth head of the US state, Abraham Lincoln, is featured on the $5 bill.
• The portrait of First Treasury Secretary Alexander Hamilton has moved from a thousandth to a ten dollar bill.
• One of the authors of the modern currency of the United States and part-time seventh President Andrew Jackson is depicted on a twenty-dollar bill.
• The $50 banknote features a portrait of Ulysses Grant, the country's eighteenth president and Civil War hero.
• The company of heads of state is diluted by the image of the scientist, publicist and diplomat Benjamin Franklin. A bill of one hundred dollars is decorated with his portrait.

Dollar denominations today

Contemplating the reverse side of the bills, you can study a little history. Children also sometimes have to tell about the origin of the dollar, because why children have a thousand questions for their parents, they are also interested in such popular dollars. It is good if such stories will also be instructive.

On the other side of the banknotes, pictures are drawn, symbolizing the development of the country as a whole. For example, the signing of the Declaration of Independence of the United States is imprinted on the two dollar bill. The five dollar bill features the Lincoln Memorial built in the capital of the United States. Ten bucks decorates the building of the US Treasury, and twenty bucks - the main residence of the president - the White House. The fifty dollars depicts the Capitol, where the US Congress sits. And finally, on a hundred dollar bill, a building is depicted in which on July 4, 1776The Declaration of Independence was signed by the Independence Hall. Did you pay attention? In the design of the currency, there is no hint of who invented the US dollar. Pollock's last name is not mentioned

Exchange power of US currency

The case of Pollock - the one who invented the dollar - was continued in 1792. Under the law of 1792, bimetallism was introduced in the United States with free coinage of gold and silver. Since 1873, the gold dollar has become the monetary unit. The official gold standard in the United States was established in 1900 with a coin content of 1.50463 grams of pure gold. In 1934, the dollar was devalued and depreciated by 40.94 percent, its gold content since January 31, 1934 is 0.888671 grams of pure gold.

The economic crisis after the First World War required an increase in the discount rate, which, however, did not help much. Until 1900, the dollar was freely exchangeable for both gold and silver. However, since 1900, only gold was allowed to barter.

Gold dollar coins are now withdrawn from circulation and replaced by banknotes.