The dollar today is the most popular currency in the world. This currency is known everywhere. What money is going to the USA now? How did they come about?
History of occurrence
It all started with thalers, more precisely with the “joachimstaler”. That was the name of the silver coins from the mine of the city of Jáchymov (modern Czech Republic). The name was quickly picked up by the Swedes, the British, Dutch, Italians, Flemings, modifying the sound in their own manner. Thus, the British initially called the dollar in colonial America the Spanish coins. As its own currency, US dollars were declared in 1785.
Paper money in the form of bonds appeared in Massachusetts back in 1690. They were re-issued in 1703, and after a few years, paper bills spread throughout America. During the war of independence, the “continental dollar” even appeared, which supplanted metal coins from circulation.
The main problem with such money was their rapid depreciation. By 1781, the currency devalued by about 40 times. Six years later, a law was passed on the mandatory reinforcement of paper notes with gold or silver. In 1792, the first minted US coins appeared.
New story
Despite all the measures that the government took, American money did not differ in stability and standard. Therefore, in 1861, a single currency appeared, the printing of which was entrusted to American Bank Note Co. Issued banknotes in denominations of 5, 10, 20 dollars were green and immediately received the name "greenbacks".
In 1913, US money was issued by the Federal Reserve Banks specially created for this purpose. For many years, the dollar has maintained stability. The Great Depression in 1933 made him stagger. However, after World War II, the role of the United States in world politics increased significantly, and American money began to be actively sent to European countries. Dollars soon became the main currency of the "old woman of Europe", crowding out even the British pounds.
In 1971, the world reserve currency begins to devalue again. After some time, at the initiative of President Nixon, the dollar’s ​​reinforcement with gold is canceled. The American currency already had a certain credit of trust, so the depreciation did not affect its global status. She remained standby.
Dollar today
Currently, the dollar is considered the national currency of the United States. In addition, back in the 19th and 20th centuries, it became the unofficial currency of many other countries. So, Canada declared it the national currency back in 1857. Now, US money has a national status in El Salvador, Panama, Palau, Bermuda, the Marshall Islands, the Virgin Islands, Timor Leste, etc. In some countries, the dollar is quite legitimately used in parallel with the national currency, for example, it used to be in Zimbabwe.
In 1913, the Federal Reserve System was created, which to this day is responsible for the publication of American money in print. Banknotes and coins are made according to the needs of the country, about half of the total number of printed dollars is sent outside its borders. Only 1% of the money produced is not in free float. The lion's share of banknotes is printed in order to replace worn copies.
Paper banknotes
All banknotes that have been issued since 1861 are still considered valid and legal. US paper money is issued in denominations of 1, 2, 5, 10, 20, 50, 100 dollars. They freely rotate in circulation.
There are also banknotes in denominations of 500, 1000, and even 10 000. But they are gradually withdrawn from circulation due to inconvenience in use. Due to this, the cost of such banknotes at auctions is much higher than their face value. Banknotes with a face value of $ 10,000 remained in circulation slightly more than 100. In 1934, the US Reserve Bank issued a banknote of $ 100,000, however, they used it exclusively for settlements within the Federal Reserve System.
All bills are the same size. Their weight is approximately 1 gram. In 1928, a general concept for the appearance of the dollar was developed. Since then, portraits of presidents and important statesmen have been placed on US money. Thus, the banknotes depict the first American Minister of Finance Hamilton, John Marshall - the chairman of the Supreme Court. The 1 dollar bill shows the first president of the United States, George Washington.
On the other side of the national banknote, important historical symbols of the country are depicted. The main motto of the USA is placed on the back of the 1 dollar bill: “We believe in God,” the Lincoln Memorial is located on the 5 dollar bill, the Ministry of Finance building is depicted at 10, and the White House at 20 dollars. The rarest banknote in circulation is $ 2, the act of signing the US Declaration of Independence is depicted on its reverse side.
Coins
Each American coin, depending on the face value, has its own common name. Currently in circulation are 1 cent coins, which are also called “pennies,” a coin of 5 cents (nickel), 10 cents (dime), 25 cents (quarter), 1 dollar (bucks). There are also 50 cents coins called “half”. They are produced in small quantities, mainly for collectors.
Several mints in San Francisco, Denver, West Point, New Orleans, and Philadelphia are minting US coins. Each of them leaves a distinctive sign in the form of English beech P, S, W, O, D.
The first US coins, starting from 1792, were minted from gold and silver, in the ratio of 1 to 15. The coins should have the inscription “Freedom” and the symbols associated with this concept. On the reverse side was an image of an eagle. Now only collection 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 coin of 3 cents, which is considered rare. It was up to this value that the price of a postage stamp fell. Their coinage ceased in 1889, it is almost impossible to find them.
In California, the Gold Rush began in 1848, so in 1849 a decision was made to issue new gold coins in denominations of 1 and 20 dollars. After the Great Depression, gold coins were taken out of circulation, and the most expensive of them is now considered to be $ 20 in 1933.
After it, the most expensive American coins are considered the silver dollar of 1804, which was sold for 4 million, as well as 5 cents of 1913, issued in only five copies (each of which costs about 4 million).