Interesting Facts About American Currency

Offical paper currency appeared in the U.S. in the late 1700s.

Paper money made its debut in the late 1600s, but it wasn't until after the Constitution of the United States was adopted that Congress authorized the issuance of official paper bank notes. Today, the U.S. government continues to redesign the country's paper currency in order to stay ahead of counterfeiting operations. The newest paper currency, the $100 bill, went into circulation in the spring of 2010.

History

The first money issued in the United States came from the Massachusetts Bay Colony in 1690. By 1775, American colonists issued paper currency to help the Continental Congress fight the Revolutionary War. After that currency lost all value since it had no backing, Congress chartered the Bank of the United States in 1791, giving it authority to issue paper bank notes. In 1913, the Federal Reserve System was created as the nation's central bank, giving it the authorization to issue Federal Reserve Notes, now the only currency produced in the United States.

Security

In 1990, a security thread and microprinting were added to $50 and $100 paper notes to help reduce counterfeiting. In 1996, more security features were added to the newly designed $100 note. The $50 bill received a redesign in 1997, including new security features and an enlarged number in the lower corner to aid people with vision problems.

Printing

In 1877, the Bureau of Engraving and Printing began printing all currency. The operation relied on six people who used steam-powered presses located in the basement of the Department of the Treasury. Today, more than 2,300 employees help with administration and printing of the currency with 30 high-speed presses printing money 24 hours per day. According to the Federal Reserve Bank, in 1990, the Federal Reserve System printed more than 7 billion notes worth about $82 billion.

Design

The front sides of all U.S. paper currency feature the portraits of famous American statesmen, including George Washington on the $1 note and Abraham Lincoln on the $5 note. Andrew Jackson adorns the $20 note while Ulysses Grant appears on the $50 note. The back of the paper currency features images showing the history of the country, including the Great Seal of the United States on the $1 note and Lincoln Memorial on the $5 note. The $10 note features the Treasury building, while the White House appears on the $20 note. The $50 note shows the Capitol.

Motto

Thanks to increasing religious sentiment during the Civil War, the motto "In God We Trust" started appearing on coins after an Act of Congress in 1864. The two-cent coin was the first to use the new motto. In 1956, a law was passed, stating that all new designs for paper currency would also bear that inscription. The $1 silver certificate was the first paper currency to carry the motto.

References

• Federal Reserve Bank of San Francisco: Fun Facts About Money
• Bureau of Engraving and Printing: Small Denominations
• Unites States Department of the Treasury: Fact Sheets: Currency & Coins: History of "in God We Trust"

Resources

• Federal Reserve Bank of San Francisco: American Currency Exhibit