An introduction to the history of money in the us

Ancient Chinese Explorers B. Cowrie Shells The first use of cowries, the shells of a mollusc that was widely available in the shallow waters of the Pacific and Indian Oceans, was in China. Historically, many societies have used cowries as money, and even as recently as the middle of this century, cowries have been used in some parts of Africa. The cowrie is the most widely and longest used currency in history.

An introduction to the history of money in the us

Share Loading the player Moneyin and of itself, is nothing. It can be a shell, a metal coin, or a piece of paper with a historic image on it, but the value that people place on it has nothing to do with the physical value of the money.

Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. Money allows people to trade goods and services indirectly, understand the price of goods prices written in dollar and cents correspond with an amount in your wallet and gives us a way to save for larger purchases in the future.

To learn more about money itself, see What Is Money? A World Without Money Money, in some form, has been part of human history for at least the last 3, years.

An introduction to the history of money in the us

Before that time, it is assumed that a system of bartering was likely used. One of the great achievements of money was increasing the speed at which business, whether mammoth slaying or monument building, could be done.

Slowly, a type of prehistoric currency involving easily traded goods like animal skins, salt and weapons developed over the centuries. These traded goods served as the medium of exchange even though the unit values were still negotiable.

This system of barter and trade spread across the world, and it still survives today on some parts of the globe. Asian Cutlery Sometime around 1, B. Nobody wants to reach into their pocket and impale their hand on a sharp arrow so, over time, these tiny daggers, spades and hoes were abandoned for the less prickly shape of a circle, which became some of the first coins.

Although China was the first country to use recognizable coins, the first minted coins were created not too far away in Lydia now western Turkey.

Coins and Currency In B. The coins were made from electrum, a mixture of silver and gold that occurs naturally, and stamped with pictures that acted as denominations.

In the streets of Sardis, circa B. It is interesting that when someone says, "as rich as Croesus", they are referring to the last Lydian king who minted the first gold coin. By the time Marco Polo visited in 1, A.

In the place of where the American bills say, "In God We Trust," the Chinese inscription warned, "All counterfeiters will be decapitated. Eventually, the banks started using bank notes for depositors and borrowers to carry around instead of coins.

These notes could be taken to the bank at any time and exchanged for their face values in silver or gold coins. This paper money could be used to buy goods and operated much like currency today, but it was issued by banks and private institutions, not the government, which is now responsible for issuing currency in most countries.

The first paper currency issued by European governments was actually issued by colonial governments in North America. Because shipments between Europe and the colonies took so long, the colonists often ran out of cash as operations expanded.

Instead of going back to a barter system, the colonial governments used IOUs that traded as a currency.

An introduction to the history of money in the us

The first instance was in Canada, then a French colony. Insoldiers were issued playing cards denominated and signed by the governor to use as cash instead of coins from France.History shows that a failure to understand monetary policy can lead to immense economic pain and suffering.

The United States cannot afford to continue the mistakes that have led to the deflation of the Great Depression, the inflation of the s and s, and the recent housing boom and bust.

The History of Money. Compiled by Ellen Terrell Business Reference Services April Updated November Table of Contents Introduction. Oct 01,  · Find out how we got from exchanging these things to doing 8 hours of work for a stack of paper that takes 2 seconds to print on The History of Paper Money.

(- . Here, get an overview of the history of money. Saturday, October 26, Nova. Share. In the United States, the gold standard was revised and the price of gold was devalued.

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An Introduction to US Monetary Policy. Steven Horwitz. Senior Affiliated Scholar. Key materials. Download PDF; the Fed has evolved to play a critical role in managing the US money supply and acting as a lender of last resort to financial institutions. deflation, and bank failures in US history have all occurred since the Fed’s. The history of the United States Dollar refers to more than years since the Continental Congress of the United States authorized the issuance of Continental Currency in On April 2, , the United States Congress created the United States dollar as the country's standard unit of money. The term dollar had already been in common usage since the colonial period when it referred to. Oct 01,  · Find out how we got from exchanging these things to doing 8 hours of work for a stack of paper that takes 2 seconds to print on The History of Paper Money. (- .

Nov 12,  · Black History in the United States: A Timeline The history of African-Americans begins with slavery, as white European settlers first brought Africans to the continent to serve as slaves.

HISTORY OF MONEY including Better than barter, Safe in the temple, The first mint, Bronze coins in China, Greek and Roman financiers, Origins of today's currencies, Paper money in China, Bank notes in Europe, Minting shells.

The History of American Currency | U.S. Currency Education Program