US Money: Paper Dollars and Coins

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

History of occurrence

It all started with thalers, more precisely with "yoahimstalerov." This is the name of silver coins from the mine of the city of Jáchymov (modern Czech Republic). The name quickly picked up the Swedes, the British, the Dutch, Italians, Flemings, mutating the sound in its own way. So, the dollar in colonial America, the British initially called Spanish coins. As a US currency, dollars were declared in 1785.

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

The main problem of such money was their rapid depreciation. Already by 1781, the currency devalued about 40 times. Six years later, the law on obligatory reinforcement of paper bills with gold or silver was issued. In 1792 the first minted coins of the USA appeared.

New story

Despite all the measures that the government has taken, American money has not been stable and standard. Therefore, in 1861 a single currency appears, the seal of which is entrusted to American Bank Note Co. Issued bills denominations of 5, 10, 20 dollars were green and immediately received the name "greenback".

In 1913, the US funds are issued specifically for this purpose by the Federal Reserve Banks. For many years, the dollar maintained stability. The Great Depression made him shake 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 sent to European countries. Dollars soon became the main currency of the "old lady of Europe", replacing even British pounds sterling.

In 1971, the world reserve currency begins to devalue again. After a while, at the initiative of President Nixon, the dollar's reinforcement of gold is canceled. The American currency already had a certain credit of trust, therefore depreciation did not affect its world status in any way. It has remained reserve.

Dollar today

Currently, the dollar is considered the national currency of the United States. In addition, even in the XIX-XX century it became the unofficial currency of many other countries. So, Canada declared it a national currency in 1857. Now, the US money has national status in El Salvador, Panama, Palau, Bermuda, Marshall Islands, Virgin Islands, East Timor, etc. In some countries, the dollar is quite legitimately used in parallel with the national currency, for example, before it was in Zimbabwe.

In 1913, the Federal Reserve was created, which to this day is responsible for issuing American money to the press. Denominations and coins are made according to the needs of the country, about half of all printed dollars are sent out of it. Only 1% of the money produced is not in free circulation. The lion's share of the denominations is printed in order to replace worn out copies.

Paper banknotes

All the notes that were issued since 1861, are still considered valid and legal. Paper money of the United States is issued in denominations of 1, 2, 5, 10, 20, 50, 100 dollars. They freely rotate in turnover.

There are also denominations denominations of 500, 1000, and even 10 000. But they are gradually withdrawn from circulation because of inconvenience in use. Due to this, the cost of such banknotes at auctions is much higher than their denomination. A denomination of $ 10,000 in circulation remained slightly more than 100. In 1934, the US reserve bank issued a $ 100,000 note, though it was used exclusively for settlements within the Federal Reserve System.

Absolutely all the bills have the same size. Their weight is about 1 gram. In 1928, the general concept of the appearance of the dollar was developed. Since then, portraits of presidents and important statesmen have been placed on US money. So, on the bills depicts the first US Treasury Secretary Hamilton, John Marshall - chairman of the Supreme Court. On a $ 1 bill, the first President of the United States George Washington is portrayed.

On the other side of the national banknote, important historical symbols of the country are depicted. On the back of the $ 1 bill, the main motto of the US is placed: "We Believe in God," a $ 5 note is the Lincoln Memorial, the Ministry of Finance building is 10, and the White House is 20 dollars. The rarest bill in circulation - 2 dollars, on its reverse side is the act of signing the Declaration of Independence of the United States.

Coins

Each American coin, depending on the nominal value, has its own common name. Currently, there are coins in circulation of 1 cent, which in another name is called "penny", a coin of 5 cents (nickel), 10 cents (dime), 25 cents (quater), 1 dollar (bucks). There are also 50-cent coins called "Half". They are produced in small quantities, mainly for collectors.

The minting of US coins is being handled 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 beech P, S, W, O, D.

The first coins of the USA, since 1792, were minted from gold and silver, in the ratio of 1 to 15. The inscription "Freedom" and symbols associated with this concept must have been on the coins. On the reverse side, the image of the eagle was placed. Now only collectible coins are made of precious metals, for the rest they use zinc, nickel alloy and brass.

Expensive and rare coins

One fact in 1853 provoked the appearance of a 3 cent coin, which is considered rare. It was to this cost that the price of a postage stamp fell. Their chasing stopped in 1889, it is almost impossible to find them.

In 1848 in California, the "gold rush" begins, so in 1849 a decision is made to issue new gold coins with 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 in 1933 issue.

After it, the most expensive American coins are the silver dollar of the year 1804, which was sold for 4 million, and also 5 cents in 1913, issued in only five copies (each worth about 4 million).