Paper Money in American’s History

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The paper money has been used in the United States since 1690. This money is first issued by the Massachusetts Bay Colony and authorized by governments in the Western world. This type of money is then used by the government to finance a military expedition and other expenses. Some of the colonies’ governments released their currency during the Revolutionary War. But this type of currency is opposed and suppressed by Great Britain. Here is some part of history which explains the development of paper money in American’s History.

Paper Money in American’s History

Paper Money in American’s History

Colonial currencies

In 1703, South Carolina produced its first banknotes and printed them in pounds. The banknotes were initiated by all Thirteen and were regulated by London. This kind of money in this era is called the first true American money.

Continental currency

In 1775, the first American national paper money was introduced by the Continental Congress. It was a union that contained former colonies in rebellion against the British. Their purpose of making the money was to meet military expenditures.

Paper money

In 1837, the United States government introduced paper money. In this time, paper money was at times of crisis. It was because the bank produced the money in limitless variety which made the circulation not healthy. It all happened because the money was produced by about 1,600 private banks. This tough situation lasted from 1837 to 1862. This era was called the Free Banking Era.

Paper Money in American’s History

Paper Money in American’s History

Free for all

In this period, lots of varieties of banknotes were circulated. It caused the notes to be forged easily which made the United States lose confidence in making paper money. This era was called free for all and gladly it ended in 1863 with the National Bank Act. The regulation said that the one who privately issued notes will be charged for taxes.

Big-money notes pulled

In 1969, there weren’t mega-valuable notes. The notes of $500, $1,000, $5,000 and $10,000 were not printed anymore since 1945. This ultra-high denomination money disappeared from the circulation at the same time. This happened because it was destroyed by the Mint. Some notes still exist and are legal.

Recent developments

In 2011, the dollar coin was stopped and small-money was not produced. But still, Americans used $1 bills, although the $2 bill was really hard to find. In 2020, the $20 bill has a new design. Some people expect the design will include Harriet Tubman’s picture, but President Trump insists to put President Andrew Jackson on the bill.

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