WEEK #354 - TGIF! TGIF! TGIF! TGIF!

[Moon]

QUESTION:

 

When and how was paper money first used publicly in America?

 

Good Luck!

 

Our first place winner will receive a coupon for 1 note graded under the Standard grading tier. (You must have an active account with PMG, call PMG for details) There will also be a runner up prize given to a randomly selected player with the correct answer.

 

 

REMINDER: The Numisma-Quest ends on Saturday at midnight EST. Entries after that time will not be valid. See the Trivia info post for more details.

 

When you post your answer, only the administrators can see it . Stop back this Monday. We will make all the posts visible and announce the winners.

 

[Coindude]

The History of U.S. Paper Money

In the early days of the nation, before and just after the revolution, Americans used English, Spanish, and French money.

 

1690 Colonial Notes

The Massachusetts Bay Colony issued the first paper money in the colonies which would later form the United States.

 

1775 Continental Currency

American colonists issued paper currency for the Continental Congress to finance the Revolutionary War. The notes were backed by the "anticipation" of tax revenues. Without solid backing and easily counterfeited, the notes quickly became devalued, giving rise to the phrase "not worth a Continental."

 

1781 Nation's First Bank

Also to support the Revolutionary War, the continental Congress chartered the Bank of North America in Philadelphia as the nation's first "real" bank.

 

1785 The Dollar

The Continental Congress determined that the official monetary system would be based on the dollar, but the first coin representing the start of this system would not be struck for several years.

 

1791 First U.S. Bank

After adoption of the Constitution in 1789, Congress chartered the First Bank of the United States untill 1811 and authorized it to issue paper bank notes to eliminate confusion and simplify trade. The bank served as the U.S. Treasury's fiscal agent, thus performing the first central bank functions.

 

1792 Monetary System

The federal monetary system was established with the creation of the U.S. Mint in Philadelphia. The first American coins were struck in 1793.

 

1816 Second U.S. Bank

The second Bank of the United States was chartered for 20 years until 1836.

 

1836 State Bank Notes

With minimum regulation, a proliferation of 1,600 local state-chartered, private banks now issued paper money. State bank notes, with over 30,000 varieties of color and design, were easily counterfeited. That, along with bank failures, caused confusion and circulation problems.

 

1861 Civil War

On the brink of bankruptcy and pressed to finance the Civil War, Congress authorized the United States Treasury to issue paper money for the first time in the form of non-interest bearing Treasury Notes called Demand Notes.

 

1862 Greenbacks

Demand Notes were replaced by United States Notes. Commonly called "Greenbacks," they were last issued in 1971. The Secretary of the Treasury was empowered by Congress to have notes engraved and printed, which was done by private banknote companies.

 

1863 The Design

The design of U.S. currency incorporated a Treasury seal, the fine line engraving necessary for the difficult-to-counterfeit itaglio printing, intricate geometric lathe work patterns, and distinctive linen paper with embedded red and blue fibers.

 

1865 Gold Certificates

Gold Certificates were issued by the Department of the Treasury against gold coin and buillion deposits and were circulated until 1933.

 

1865 Secret Service

The Department of the Treasury established the United States Secret Service to control counterfeits, at that time amounting to one-third of circulated currency.

 

1866 National Bank Notes

National Bank Notes, backed by U.S. government securities, became predominant. By this time, 75 percent of bank deposits were held by nationally chartered banks. As State Bank Notes were replaced, the value of currency stabilized for a time.

 

1877 Bureau of Engraving and Printing

The Department of the Treasury's bureau of Engraving and Printing started printing all U.S. currency, although other steps were done outside.

 

1878 Silver Certificates

The Department of the Treasury was authorized to issue Silver Certificates in exchange for silver dollars. The last issue was in the Series of 1957.

 

1910 Currency Production Consolidated

The Department of the Treasury's Bureau of Engraving and Printing assumed all currency production functions, including engraving, printing, and processing.

 

1913 Federal Reserve Act

After 1893 and 1907 financial panics, the Federal Reserve Act of 1913 was passed. It created the Federal Reserve System as the nation's central bank to regulate the flow of money and credit for economic stability and growth. The system was authorized to issue Federal Reserve Notes, now the only U.S. currency produced and 99 percent of all currency in circulation.

 

1929 Standardized Design

Currency was reduced in size by 25 percent and standardized with uniform portraits on the faces and emblems and monuments on the backs.

 

1957 In God We Trust

Paper currency was first issued with "In God We Trust" as required by Congress in 1955. The inscription appears on all currency Series 1963 and beyond.

 

1990 Security Thread and Microprinting

A security thread and microprinting were introduced, first in $50 and $100 notes, to deter counterfeiting by advanced copiers and printers.

[BigBob]

In December 1690, The Massachusetts Bay Colony issued the first publicly authorized paper money notes in the eastern world to pay expenses of a border war with Canada.

[Schatzy]

June 23rd 1775

 

In the summer of 1775 the 13 colonies that would become the United States of America found itself embroiled in a war with England. The shot heard round the world had been fired at Lexington, Massachusetts, and battles had also been fought in Concord and Bunker Hill. The Declaration of Independence was still a year away, but the Continental Congress realized that if they were to continue engaging in this war they were going to need money. The Continental Congress decided upon a simple strategy to pay for the war against England: they would just print up some money and expect people to accept it.

 

[jtryka]

1690 Massachusetts Bay Colony notes is my guess for what became the USA, but in all America, in 1685, in Quebec Jacques de Meulles issued credit notes using his signature and seal on playing cards in different denominations since good paper was scarce.

[bsshog40]

1690 with the use of "Paper Shillings" in Massachusetts. They started out as IOU's for 1 shilling.

[me0505]

The first State issue of notes (in north America) was made in 1690 by the Massachusetts Bay Colony. These notes, or "bills of credit". were issued to pay soldiers returning from an expedition to Quebec. The notes promised eventual redemption in gold or silver and could be used immediately to pay taxes and were accepted as legal tender. The example of Massachusetts was followed by other colonies who thought that by printing money they could avoid the necessity to raise taxes.

[dan8402]

1690 by the Massachusetts Bay Colony to pay soldiers returning from an expedition to Quebec.

[ritter]

in 1690 paper money was issued to soldiers instead of gold or silver.

[Moon]

QUESTION:

 

When and how was paper money first used publicly in America?

 

ANSWER:

 

1690, Massachusetts Bay paid for a military expedition to Canada during King William’s War with bills of credit.

 

 

Congratulations to our 1st place winner BigBob! You will receive a coupon for 1 free standard grading.

 

Congratulations to our runner up winner me0505! You will be receiving a PMG Bank Bag and a sample.

 

 

Thanks for playing this weeks Numisma-Quest. Dont forget to stop by for this weeks NGC question!

 

[physics-fan3.14]

Uhh.... I think coindude posted the answer a full 20 minutes before BigBob. Shouldn't he be the first place winner?

[me0505]

THANKS!