HISTORY OF MONEY

COMMODITY MONEY

• 1607-Present
• Was just trading between native Americans and European colonists

STATE/LOCAL BANK NOTES

• Each colony had their own currency.
• Some places paper money was exchanged for gold.
• 1713-1744

CONTINENTAL dOLLAR

• 1775-1783
• United States a national currency based off 80 and each note would be $80.00.
• Once counterfeits were made, they stopped using them

DEMAND NOTES/ GREEN BACKS

• 1861-1862
• A loan with no set payback time.
• Objective was to pay government workers and military personnel during the war.

US NOTES

• 1862-1971
• Replaced the failed demand notes
• They were not backed by gold so not many people trusted or used them.

NATIONAL BANK NOTES

• 1863-1935
• Used by banks in the US
• Backed by bonds and deposited into US treasury

NATIONAL BANKING SYSTEM

• 1863-1913
• Would float federal war loans
• Set national currency
• Prevent national crises

SILVER CERTIFICATES

• 1878-1974
• Department of treasury issued silver certificates in place for silver dollars

GOLD CERTIFICATES

• 1863-1933
• These settled gold accounts

TREASURY COIN NOTES

• 1890-1891
• Issued to people selling silver bouillon to the treasury.
• Released gold or silver when the prices would go up or down.

GOLD STANDARD

• 1880-1914
• Used to fix currency by a specific amount of gold.
• During wwi

IN CONVERTIBLE FIAT MONEY STANDARD

• 1930's
• FIAT money cannot be exchanged for gold or silver
• Happened because federal notes were backed by legal mean and not by good or silver

FEDERAL RESERVE NOTES

• 1915-1934
• Issued by United States government
• Incorporates characteristics of money

FED

• 1913-
• US first true central bank
• Purpose is to loan money to banks in need

FDIC

• 1933-present
• Deposit insurance guarantying safety in the account.
• Managed by the bank