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How Has Paper Money Changed Throughout History In The United States?

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How has paper currency evolved throughout history in United States? The lecture of this Unit will begin by introducing the importance of existence of money throughout history, how it was designed, evolved and printed. The existence of money as a medium of exchange and as means of buying and selling goods or services dates back to at least 3000 BC when Sumerians began using metal coins in place of bartering with barley. Interestingly, the use of paper money originated in China during seventh century; conversely it is an uncertain value as opposed to the more universally accepted value of silver and gold coins led to widespread inflation and bankruptcy. This did not lead to devaluation of money as paper money entered in the circulation again …show more content…

Each engraver is responsible for a single portion of a design allowing product to be done in an efficient manner. For example, one individual is responsible for doing the portrait, while other works on the numerals. Additionally, the portrait on the face of each bill varies by the denomination. For instance, George Washington appears on the $1 bill, Abraham Lincoln on the $5 and Benjamin Franklin on the $100 bill. These individuals were selected based on their importance in the history and the fact they were very well known in the public. Additionally, there are five major steps to the production of paper money in United States. These steps include Engraving the master die, Making the master printing plate, Printing the front and back of the bills, Printing the colored Treasury seal and serial numbers and Cutting and Wrapping the bills. Significantly, despite the use of high quality paper and inks, the average life of a one-dollar bill in circulation is roughly about 18 months. When a bill has been defaced, torn or worn in a manner that it is no longer identifiable or usable; it is taken out of circulation and returned to the Federal Reserve Banks for a destruction through a process known as

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The states, back then, had the choice to choose paper money, and most of them did because they didn’t really want to pay taxes with their gold and silver. With this change in currency, the value fell and hurt the economic “reputation”. If the federal government hadn’t given the state governments the right to choose paper money they would have been much better off in the long run. Overall, in his article The Devil in Devolution, Donahue’s main point was the states were being given too much power and weren’t necessarily able to handle all the responsibility properly that comes with power like the federal government would have been able

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259 Words | 2 Pages

In the era of 1837, was the starting point for the new establishment for banks all over the United State. In the beginning, banks were in the center of importing and exporting and funding paper bills (Foner 365). The banks funded businesses and other industry to trade, buy or sell opening the pathways to overseas. Thus, to a wider range of people who flavored western goods and in return helped western prospered. However, without a proper regulation and restriction of issuing out bills put a downfall in the economy, unbalance system that cause the Panic of 1837 (Foner 366).

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“One of the first acts of the second Continental Congress, which met in Philadelphia May 10, 1775, was to authorize the issue of a sum not exceeding two millions of Spanish milled dollar bills of credit ‘for the defence of America’. John Adams and Benjamin Franklin were members of the committee appointed to superintend the printing, and they gave the job to Paul Revere…”

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Congress mandated that paper money be issued and accepted in lieu gold and silver coins and specie-backed notes. The government promised to redeem the bills and their value was dependent on public confidence in the government. Many thought this promise of backing the bills was about as good as the green ink printed on one side, hence the name "greenbacks. " The paper money depreciated in terms of gold and became the subject of much controversy, particularly because debts contracted earlier could now be paid in this cheaper currency.

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N.p., n.d. Web. 19 Apr. 2017. "The Currency Act." Ushistory.org. Independence Hall Association, n.d. Web.

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1081 Words | 5 Pages

Each colony had issued its own paper money. The more money there was in circulation, the less a dollar was bought. Then came the financial collapse. People’s paper dollars were refused as payment. They had no gold or silver.

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513 Words | 3 Pages

During the Civil War paper money had been made, but at the time it was not exchangeable for gold or silver. Congress had to decide wether or not to keep the paper money, get rid of it, or make it exchangeable for gold and silver. People had arguments on why they should do either option. The ones who voted to get rid of paper money or make it exchangeable feared inflation. Where the people who voted to keep paper money said there was not enough gold and silver to support a growing economy.

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611 Words | 3 Pages

Control of taxation and tariffs was left to the states, and each state could issue its own currency. The result was virtual chaos. Without the power to collect taxes, the federal government plunged into debt. Seven of the 13 states printed large quantities of paper money, high in face value but low in real purchasing power, in order to pay veteran soldiers and a variety of creditors, and to settle debts between small farmers and large plantation owners.

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“The bank is trying to kill me, Sir, but I shall kill it”, Jackson” as he said to the Vice President Martin Van Buren as he reacted to the charter. Yet, trying to make the value of gold and silver equivalent to paper is not really a great idea. Today right now, gold and silver is worth millions of dollars. Eventually, people are going to notice that it is going to get more difficult to find gold and silver. Trying to make them the same value would of be crazy difficult.

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Paper money was in favor and became a major part of the economy, and almost 75 percent of the currency used was paper money. A great thing for our country was established in 1686, the first American Land Bank began in Massachusetts. The great thing about this bank was that it accepted deposits unlike the other banks established. They were not considered to be “real banks”, so instead of accepting deposits, they created something called “Bills on Loan”, which was used by people who borrowed money. The downside was that the government would allow you to use a certain amount of these “Bills on Loan” before reaching a limit.

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During that same year, George Grenville had also passed the Currency Act 1764. The act prohibited the use of paper money in the thirteenth colonies, “this object was to standardize currency and prevent wildly fluctuating notes and coins, but the real effect was to take money out of circulation and stifle colonial trade,” (Allison 6). In other words, the British government wanted to gain more control on the colonies. The Currency Act upsets the colonies due to the fact that it favored the British over them.

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The one dollar bill? George Washington. The five dollar bill? Abraham Lincoln. The twenty dollar bill?

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1567 Words | 7 Pages

As more and more paper money was printed, the value of it began to fall, which eventually, nearly bankrupted the new

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674 Words | 3 Pages

Before a single form of currency was established, local banks were allowed to make loans that were issued by their own bank notes. The local banks did not have to use gold and

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The common name of my organism that currently lives on Earth is meerkat. The appearance of a meerkat is similar to that of a mongoose except they are more slender. Meerkats are about 25 - 35 cm in length with a tail that extends between 17 - 25 cm. They often weigh between 720 - 730 grams. Their tails are long and they redden or blacken to a pointed tip, but they do not have a bushy end.

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