History of American Paper Money (2024)

A HISTORY OF AMERICAN PAPER MONEY

FROM COLONIAL BILLS TO SILVER AND GOLD CERTIFICATES TO EVEN A $100,000 NOTE, AMERICAN PAPER MONEY HAS UNDERGONE MANY CHANGES THROUGHOUT ITS HISTORY.

1690 COLONIAL BILLS

The Massachusetts Bay Colony issues the first paper currency to pay for military expedition costs. Other colonies soon follow this practice.

1775 CONTINENTAL CONGRESS CURRENCY

Paper money is issues by the Continental Congress to finance the Revolutionary Way.

1781 FIRST NATIONAL BANK

The Congress charters The Bank of North America, in Philadelphia, as the first national bank.

1785 THE U.S. DOLLAR

Congress sets the dollar as the monetary unit of the United States.

1791 FIRST U.S. CENTRAL BANK

Congress licenses the first Bank of the United States for a 20-year term as a fiscal entity for the U.S. Treasury.

1792 FEDERAL MONETARY SYSTEM

Federal Monetary System is established with the creation of the U.S. Mint.

1882 FIRST GOLD CERTIFICATES

Gold certificates entitles holders to a pre-determined amount of gold coins. Used from 1882 to 1933

1913 FEDERAL RESERVE ACT OF 1913

The Federal Reserve System is created to regulate the flow of money. New currency is names Federal Reserve Notes.

1914 LARGE SIZE FEDERAL RESERVE NOTES

$5, $10, $20, $50, and $100 notes are issued, with a size larger than today's bills.

1918 LARGE SIZE DENOMINATIONS FEDERAL RESERVE NOTES

Yes, they were real! $500, $1,000, $5,000 and $10,000 large-size notes were issued for public use. In 1969 all notes greater that $100 were retired due to poor demand.

1929 STANDARDIZED DESIGN

To lower production costs, bill sizes were reduced by 25%, and a consistent design was implemented with uniform portraits on front and emblems or monuments on back.

1934 $100,000 GOLD CERTIFICATES

The highest denomination ever made, these were only used for transactions amongst Federal Reserve banks and were not available to the public.

1957 "IN GOD WE TRUST"

$1 Silver certificated were the first notes to have the motto "In God We Trust".

1990 NEW COUNTERFEIT DETERRENT METHODS

Micro printing and security threads are developed to deter counterfeiters.

1996-2000

REDESIGN OF PAPER MONEY

Multiple advanced counterfeit deterrent methods are implemented, first used on the $100 bill. This was the biggest change on paper currency design since the use of small-sized notes in 1929.

2003-2006 UPDATED SECURITY FEATURES

Improved security features and special background colors are created for the Federal Reserve Notes. The $20 bill was the first one to have these features.

2007 NEW $5 BILL WITH AN ALL DIGITAL DESIGN

This was the first time that paper currency had an all-digital design for improve security methods even further.

2010 NEW $100 BILL DESIGN

The new $100 bill is issued, featuring advanced technology to prevent counterfeiting while retaining the traditional look of American currency.

CREDIT SEASON

WWW.CREDITSEASON.COM • A HISTORY OF • AMERI CAN PAPER MONEY FROM COLONIAL BILLS TO SILVER AND GOLD CERTIFICATES TO EVEN A $100,000 NOTE, AMERICAN PAPER MONEY HAS UNDERGONE MANY CHANGES THROUGHOUT ITS HISTORY. 1775 1781 FIRST NATIONAL BANK The Congress charters The Bank of North America, in Philadelphia, as the first national bank. CONTINENTAL CONGRESS CURRENCY Paper money is issued by the Continental Congress to finance the Revolutionary War. THREE DOLLAES. Wo. THIS Bill entirtes the 2 BEARER To receier Three SPANTEH milled DOLLARS, er the Valw WESTIN acreraing to a Rejolation ef CONGRESS, pafi at Pindaddphia, july sa, 1776. 1785 THE U.S. DOLLAR Congress sets the dollar as the monetary unit of No.30SEVENY Ra VESSAKUM mi JOLLARS, eTala THREE DOLLARS. the United States. ordier CONGRESvtn- Pildeiphia Nove iStotothu uanst 1690 EYIN DOLLARS. COLONIAL BILLS The Massachusetts Bay Colony issues the first paper currency to pay for military expedition costs. Other colonies soon follow this practice. 1791 FIRST U.S. CENTRAL BANK Congress licenses the first Bank of the United States for a 20-year term as a fiscal entity for the U.S. Treasury. ($) 1792 1836 FEDERAL 1816 FREE BANKING ERA SECOND U.S. (STEM Federal Monetary System is Private banks issue their own paper currency, as there was no formal U.S. central bank and minimum regulation. Bank notes are easily counterfeited. CENTRAL BANK established with the creation Congress charters the second U.S. Central bank for the 1816-1836 period. of the U.S. Mint. 1861 CIVIL WAR "GREENBACKS" In an effort to finance the Civil War, the Congress authorizes the U.S. Treasury to issue paper money in the form of "Demand Notes", also called "greenbacks". 2P 7855 luited States 6 Tushimyten FIVE DOLLARS Nashinglen GNew 10 10 asht. York UNITED STATES 62541 o TENDOLEA UNTTTD 6. STATES 20 Dullrs ক 20 Cuaty Hastanglen: 19012 Ungust0N6 Washingien 100 1862 FIRST $2, $50, AND $100 BILLS 300 UNITED STITES Hohatauder MADE AS LEGAL TENDER NOTES. 40077 ey h anOue lundred Dellars Legal Tender Notes or U.S. Notes replaced Demand Notes and were made from 1862 to 1971. B1365 UNITED STATES 50 STATES 412 ENITED 50 PIFTY DOLLARS 1865 ESTABLISHMENT OF U.S. SECRET SERVICE The U.S. Secret Service is created as a bureau of the Treasury to prevent counterfeiting and protect the national currency. ICATEOI DLHAT A6912+ 20 Treasurer US. Washhigiom IEC THIS 20 pirgndr ar dur alce to the en desnand Twenty ($) C0000000 LLARS kmany 1877 BUREAU OF ENGRAVING AND PRINTING All U.S. currency begins to be printed by the Treasury's Bureau of Engraving A6911 1878 and Printing FIRST SILVER CERTIFICATES Silver certificates start being issued in exchange for silver dollars. 1882 THIS CERTEES THAY C628285 CC:ODC0ION 500 O payali te sheraie weUSUry Anited States, FIRST GOLD CERTIFICATES Gold certificates entitled holders to a pre-determined amount of gold coins. Used from 1882 to 1933. EPARTRET SERIR S C628285 GOLD CERTIICATE 1913 FEDERAL RESERVE ACT OF 1913 The Federal Reserve System is created to regulate the flow of money. New currency is named 5. THE UNETEDSTVIES OFAMERIC C2431307A 3-c 30 Federal Reserve Notes. 3-C C2431307A Aka FINE DOLLARS kiei VHIEUNITED STATES OEAMERICA C40138098A 3-C FEDRALRENE 10 30 10 TIA UNEED SENEUS OEAMBEIOA 3-ç C40138098A TEN LARS 30 20 ONA D SENEES OPAMBRIC A319035A 20 C1693682A 3-c 3c C1693682A A319035A Harhinghe 20 at. TWININDOLLMIS uie 20 TnIEA.ENER ENITREVA 100 100 THE UNIED SENTES OPAMERION L1063897A 12-L 21 ($) 1914 12-L L1063897A Hhkingtin ONEHINDREIDDOLLMIS 100 LARGE SIZE FEDERAL RESERVE NOTES $5, $10, $20, $50, and $100 notes are issued, with a size larger than today's bills. 1918 LARGE SIZE HIGH DENOMINATIONS FEDERAL RESERVE NOTES 500 THEUNITEDST 7-G 7-6 Yes, they were real! $500, $1,000, $5,000, and $10,000 large-size notes were issued for public use. In 1969 all notes greater than $100 were retired due to poor demand. S G26838A 02 7-G G26838A RESERVE NOTE 1000 EDE TIHE UNITEDSINTESOPAMERICS 5000 ENKR ESOTE THE UNITED STNTES OFAMERICA 5000 3-C 1000 L1087A 12-L C11204A 12-L 30 121 L1087A, 3-c C11204A d a. 12-L 1000 NASNINSTONAE 12-L ONETKOUN NT 5000 PIVE THOUSANDDOLLARS 5000 AIEISrvIEE 10000 L1957A 12-L (s) 12-L L1957A 12-L 10000 TEN THOUSAND DOLLARS 1000 1929 THE FERENAL RESERVE BANE D D00192689 A CLEVELAND STANDARDIZED DESIGN To lower production costs, bill sizes were reduced by 25%, and a consistent design was implemented with uniform portraits on front and emblems or monuments on back. UNEENDHEDDOILLAIS 300192689 A D destate 100,000 100,000 A00020113 A 100000 GOLD aENT OF AL WASHINGTON. DC ($) 100,000 A00020113 A THEUNITED SA DOLLY NE HUNDREDAON DEMANIA PAYARLE TO BEAKEE TES OPAM RIOLS RDAS AL 100000 1934 THE UNITED STATES OFAMERICA 2ONE $100,000 GOLD CERTIFICATES The highest denomination ever made, these were only used for transactions amongst Federal Reserve banks and were not available to the public. 1957 THE UNITED STATES OFAMERICA •02675443 A "IN GOD WE TRUST" $1 Silver certificates were the first notes to have the motto "In God We Trust". THE UNITED STATES OFAMEBICA *02675443 A DB 88881380 A 82 DB 86881380 A DOLLA RS 1990 NEW COUNTERFEIT DETERRENT METHODS FB 22509428 A B2 THE UNITED SENTES OFAMICRICA Micro printing and security threads are developed to deter counterfeiters. FB 22509428 A FIVE DOLLA RS AK 50403409 A K11 NPUDSAVEXS DEAMERICA 1996-2000 AK S04034n REDESIGN OF PAPER MONEY Multiple advanced counterfeit deterrent methods are implemented, first used on the $100 bill. This was the biggest change on paper currency design since the use of small-sized notes in 1929. UNITEDSTATES ID 228 60 B D4 EE 00000000 T ID 228 60 B WENTTY DOL ARS 2003-2006 PEDERL IG 00000000 T THE UNITED SEATES OF AMGRICA UPDATED SECURITY FEATURES Improved security features and special back- ground colors are created for Federal Reserve Notes. The $20 bill was the first one to have IC 00000000 T these features. FIVE DOLLARS 2007 NEW $5 BILL WITH AN ALL DIGITAL DESIGN This was the first time that paper currency had an all-digital design to improve security methods even further. FEDERAL RESERVENOTE ONEI DHED DOLLAHS JB 00000000T B2 AYLTEDSTATES DFAMERICA Jrzy 4. ate Tic JB 00000000 T 100 2010 NEW $100 BILL DESIGN The new $100 bill is issued, featuring advanced technology to prevent counterfeiting while retaining the traditional look of American curency. References CREDIT SEASON www.frbsf.org/publications/federalreserve/annual/ 1995/his tory.html www.moneyfactory.gov/images/BEP_History_Sec508_web.pdf www.newmoney.gov/currency/history.htm www.CREDITSEASON.COM © 2012 CreditSeason.com TWENTY DOLLARS WENTY DOLA

FAQs

When did America start using paper money? ›

Paper money in the United States dates back to 1690 and represented bills of credit or IOUs. New currencies were introduced in the U.S. in 1861 to help finance the Civil War. In 1996, a series of bills were introduced that used new methods to prevent counterfeiting.

What did the first U.S. paper dollar look like? ›

The first $1 notes (called United States Notes or "Legal Tenders") were issued by the federal government in 1862 and featured a portrait of Secretary of the Treasury Salmon P. Chase (1861-1864). The first use of George Washington's portrait on the $1 note was on Series 1869 United States Notes.

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Who printed America's first paper money? ›

Paper currency in the United States is born, issued by the Massachusetts Bay Colony to fund military expeditions. Other colonies quickly take up the practice of issuing paper notes.

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Who invented paper money and why? ›

Paper money was first invented by the Chinese in the 7th century A.D. as a way of simplifying larger monetary transactions; paper money is a lot easier to handle than thousands of copper coins. In the 7th century, during the Tang dynasty, private issued bills of credit were introduced.

Is a $2 bill worth $5000? ›

According to U.S. Currency Auctions, some versions of the $2 bill are valued at nearly $5,000. The company said $2 bills from 1890 with a brown or red seal could sell for up to $4,500. But that's not all. Some newer versions of the $2 bill could also have a higher value.

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Did the U.S. ever have a $3 bill? ›

Though a gold three-dollar coin was produced in the 1800s, and the Bahamian dollar (which is pegged to the US dollar) has a $3 banknote, no three-dollar bill has ever been produced in the United States. Various fake US$3 bills have also been released over time.

Can I get a $500 bill from the bank? ›

American paper currency comes in seven denominations: $1, $2, $5, $10, $20, $50, and $100. The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation.

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Are $2 bills still made? ›

Today, the general public is still largely unfamiliar with the notes because they are not widely circulated and continue to be hoarded. The common misconception that the $2 note is no longer being produced also remains, though $2 notes have been printed since 1862, except for a 10-year hiatus between 1966 and 1976.

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What does the k mean on a dollar bill? ›

If you are referring to the letter K surrounded by a decorative circular pattern on the left side of the obverse (portrait) face of a bill, in the position where the B is located (red square) here: The letter K in that position indicates that the bill originated at the Federal Reserve Bank of Dallas, TX. (

What did America use before the dollar? ›

Cash in the Colonies was denominated in pounds, shillings, and pence. The value of each denomination varied from Colony to Colony; a Massachusetts pound, for example, was not equivalent to a Pennsylvania pound. All colonial pounds were of less value than the British pound sterling.

Why is money called Benjamin? ›

For example, both Canadians and Americans refer to a $100 note as a C-note, but an American might refer to it as a Benjamin, after its portrait of Benjamin Franklin, while a Canadian might refer to it as a Borden, after its portrait of Robert Borden.

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Does China still use paper money? ›

In the early 20th century, China started using a combination of banknotes and coins as money, which by then had become standard across the world. It remains the standard today, although electronic payments are threatening to make banknotes and coins obsolete.

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Can you buy the paper money is printed on? ›

You can purchase uncut currency in sheets of 4, 5, 8, 10, 16, 20, 25, 32, and 50 notes per sheet. Not all notes, however, are available as uncut currency in all of these sheet sizes. Smaller sheet sizes are cut out of the original full-size sheets.

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Why did the U.S. start using paper money? ›

Demands for money in the Civil War rapidly exceeded the availability of specie (gold and silver) and the capacities of the private banking system. The governments in both the North and the South began to print their own currencies as a temporary wartime expedient.

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What did the U.S. use before the dollar? ›

Continental currency. After the American Revolutionary War began in 1775, the Continental Congress began issuing paper money known as Continental currency, or Continentals.

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Did the U.S. print money in the 1920s? ›

In the '20s, the Fed printed dollars in efforts to help Great Britain reestablish its pound sterling as a premier currency following World War I.

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What currency was used in America during the 1700s? ›

Colonial Coins

The most famous of these was the Spanish Dollar, which served as the unofficial national currency of the colonies for much of the 17th and 18th centuries. With its distinctive design and consistent silver content, the Spanish dollar was the most trustworthy coin the colonists knew.

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