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Period: to
The Progression of Money
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Massachusets Bay Colony
Before this time, coins were the medium of exchange. The Spanish Real was a trusted coin. In the later 1960's Massachusetts Bay Colony issued its first paper money to the thirteen original colonies. Some of this paper money was backed by silver and gold, while other bank notes were not backed by anything. In the end, this method was not trusted, therefore not accepted in society. -
Continental Cash
This paper money was backed by the anticipation of future tax revenues. This was issued in order to finance the Revolutionary War. But again, since it was not backed by gold and silver the public lost faith in the "Continentals." -
First National Bank
Congress chartered the Bank of North America which was in Philadelphia.This was suggested due to the Revolutionary War, -
First U.S. Bank
The charter for the First Bank of the United States was created, and set to expire in 1811. The Second Bank of the U.S. was set to expire in 1836. These banks were unregulate by the government and privately owned. -
Mint Act 1792
This act authorized $10, $5, $2.50,$1, $.50, $.25, $.10, $.5, $.1 coins. The continental money was declared useless and worthless. -
Hamilton's Vision
Hamilton voiced how he belived the nation should have a strong national bank. He came up with the foundation ideas for the Federal Reserve Bank, helped to make it creditable, and argued for stable purchasing power. -
Expansion of Banks
By 1805 there were eight branches of the bank. -
Free Banking Era
Banks began to issue their own bank notes, which could be redeemed for gold. -
Green Backs
The governemnt issued $5, $10 and $20 denominations in order to finance the Civil War. -
Secret Service
Due to the growing problem of counterfeiting, the Department of the Treasury dubbed the Secret Service responsible for controlling the problem -
Federal Reserve Act
It created the Federal Reserve System as the nation's central bank. Its purpose is to regulate the flow of money and credit to ensure stability. Today the Federal Reserve Notes represent 99 percent of all currency in circulation. -
Stock Market Crash
This event plunged the nation into economic depression. -
Great Depression
During this time almost 10,000 banks failed from 1930 to 1933. The first national banking holiday was declared. -
Glass-Steagall Act
This act was also called the "emergency act 1933."This seperated commercial banking from investment banking and required bank holding companies to be examined by the Fedral Reserve. -
The Banking Act
Established the Federal Deposit Insurace Corp. (FDIC). -
In God We Trust
The inscription "In God We Trust," appears on all currency paper money from 1963 till present times. -
Monetary Control Act 1980
Laws were passed to let banks compete more freely with other finacnial institution, opening the doors to the services available today. -
Currency Redesign
In order to bring U.S. currency security to a higer level, the Secretary of the Treasury decided to redisign.The newly designed $100 was introduced in 1996, the $50 in 1997, and the $20 in 1998. The new $50 incorporated "a low-vision feature, a large dark numeral on a light background on the lower right corner of the back." -
Integrated Departments
The Secret Service and U.S. Department of Homeland Security unite together to fight and control aginst counterfeiting. -
The Lincoln One Cent Coin
This coin represents a united country. "These one-cent coins have a metallic content of 2.5 percent copper, balance zinc. They are issued for circulation in quantities sufficient to meet the demands of commerce. Numismatic (proof and uncirculated) versions are included in the United States Mint's annual product offerings."
