Money is one of the primary objectives of modern life; education, careers, and life choices are centered around a both physically tangible and inaccessible slip of creased paper. Money is so vital, in fact, that it seems implausible that the primary driver of the United States economy developed throughout a tumultuous history. That folded, stained $1 bill resting quietly in the dark confines of your wallet may have been passing through innumerable hands for nearly 5 years, assigned value and honored by each and every holder in turn. That $1 bill has bought lives, opportunities, and M&Ms from the vending machine. However, the history of every coin and bill doesn't necessarily begin when they emerge, freshly minted and printed, from the ink-scented factory to be crisply folded into a back pocket. Here are some facts about the history American money, beginning from the first dollar bill issued in 1862, that will enlighten your perception of the piece of paper tucked in your wallet.
1. Initially, the US government allowed only coins as legal tender and outlawed the use of paper money for monetary transactions. Article One of the US Constitution proclaimed simply that the federal government's sole power was to produce coin money, not bills; the American Revolution had been financed by paper money, yet the bills became virtually worthless by the end of the war. To protect against the devaluing of paper money, the founding fathers believed that coining money was the only economically efficient and accurate solution.
2. In 1793, before the California Gold Rush, a law permitted foreign coins and bills such as Spanish Dollars to be included in the American monetary system due to the America's lack of sufficient precious metals and ores to mint coins, and were not banned until 1857.
3. The highest denomination bill ever printed was a 100,000 dollar bill, engraved with the face of President Woodrow Wilson. However, the bill was never issued to the public during it's one year lifespan of existence and was simply utilized for large federal transactions. The largest denomination bill ever issued to the public was worth $10,000, displaying the face of Salmon P. Chase, treasury secretary at the time. However, the government stopped producing the bill in 1969 along with other high denomination bills such as the $5,000 bill and the $500 bill.
4. The highest average lifespan for a bill is for the $100 bill, which is estimated to be able to remain in circulation for 18 years. The $1 has the next highest lifespan though it is considerably lower; a $1 bill is estimated to be able to remain in circulation for 4.8 years. A $5 bill has an average lifespan of 3.8 years, and a $10 has an average lifespan of 3.6 years. The federal government believes that it takes an average of 4,000 folds back and forth for a bill to rupture.
Photo credit: http://www.history.com/news/8-things-you-may-not-know-about-american-money
1. Initially, the US government allowed only coins as legal tender and outlawed the use of paper money for monetary transactions. Article One of the US Constitution proclaimed simply that the federal government's sole power was to produce coin money, not bills; the American Revolution had been financed by paper money, yet the bills became virtually worthless by the end of the war. To protect against the devaluing of paper money, the founding fathers believed that coining money was the only economically efficient and accurate solution.
2. In 1793, before the California Gold Rush, a law permitted foreign coins and bills such as Spanish Dollars to be included in the American monetary system due to the America's lack of sufficient precious metals and ores to mint coins, and were not banned until 1857.
3. The highest denomination bill ever printed was a 100,000 dollar bill, engraved with the face of President Woodrow Wilson. However, the bill was never issued to the public during it's one year lifespan of existence and was simply utilized for large federal transactions. The largest denomination bill ever issued to the public was worth $10,000, displaying the face of Salmon P. Chase, treasury secretary at the time. However, the government stopped producing the bill in 1969 along with other high denomination bills such as the $5,000 bill and the $500 bill.
4. The highest average lifespan for a bill is for the $100 bill, which is estimated to be able to remain in circulation for 18 years. The $1 has the next highest lifespan though it is considerably lower; a $1 bill is estimated to be able to remain in circulation for 4.8 years. A $5 bill has an average lifespan of 3.8 years, and a $10 has an average lifespan of 3.6 years. The federal government believes that it takes an average of 4,000 folds back and forth for a bill to rupture.
Photo credit: http://www.history.com/news/8-things-you-may-not-know-about-american-money
Wow! I am surprised that American paper money is so young (only 150 years old)! I often think about the strange fact that the bill I'm holding cost only cents to make, is not worth its face value, and is only powerful when people accept it. Money is very interesting as most of it is imaginary, like money you might only use in a transaction online from your debit card to an Amazon seller's card. I can't imagine what it would be like if sellers stopped accepting paper money/ other forms of payment that represent a numerical value they are not worth.
ReplyDeleteI wonder why the $1 bill's average lifespan is 1 year longer than that of a $5 bill. It seems to me as if $1 bills change hands more often. And taking out the $100,000 bill was probably a very good idea, considering that one piece of paper could carry that much power.
ReplyDeleteImagine if the US government had kept the ban on paper money! We would all be so weighed down with coins all of the time. It would be crazy.
ReplyDeleteI think coins are better for smaller dollar denominations (as the euro does), but it is interesting to imagine what it would be like if we had hundred-dollar coins. It would indeed be atypical.
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