The Evolution of the Monetary System

THE EVOLUTION OF THE MONETARY SYSTEM IN THE UNITED STATES WHAT DID PEOPLE USE BEFORE MONEY? COIN Before humankind fashioned coins and bills, bartering was the foremost tactic of purchasing goods. Bartering is the exchange of personal possessions for goods or services of equal value. The practice is still used today in markets around the world and even between friends. 1637 Wampum, strings of clam shells used by American Indians, 1690 Paper money is introduced to the 1775-1783 Continental Congress issues first paper currency to fund Revolutionary War 1791 First Bank of the United States is established in 1792 The U.S. Mint is created by Congress and construction Massachusetts Bay Colony and would becomes legal tender in the Massachusetts eventually unite the Bay Colony. Philadelphia with a 20 year charter. begins in Philadelphia. colonies. 1812 1811 1815-1824 Market Revolution 1793 The first circulating The charter for the The First Bank's Second Bank of the charter expires. Paper currency issued by the bank is the first sign of a national currency.- coins, 11,178 copper cents, are produced by The U.S. Mint. Gold and silver coins United States is approved after the War of 1812. It is ВАИK not officially created until 1817. EXPIRED are produced next. 1819 The Supreme Court rules that the chartering of the Second Bank of the United States is constitutional in McCulloch v. 1819 Bank recalls paper money to balance the country's inflation. The result is a series of bankruptcies, foreclosures and bank failures known as The 1832 Andrew Jackson's War President Andrew Jackson tries to dissolve the bank because he felt it overpowered the economy and helped the wealthy. Maryland and that states cannot tax a federal government operation. Panic of 1819. 1834 *1865 The original purpose of the Secret Service was to find counterfeit notes (greenbacks) to pay Civil War soldiers money which made up 1/3 of the money in 1861-1865 The Bureau of Engraving and Printing produced 3, 5, 10, 25, and 50 cents paper 1834 Jackson succeeded in withdrawing federal funds from *Jackson became the first and only President censured because people hoarded coins. for firing his treasury secretaries and the Bank, crippling it until it died in 1836. RIP withdrawing funds from the Bank. circulation. *1886 *1916 1913 Federal Reserve Bank Free money laundry (The Fed) is created. 1929 Stock market crashes, World War II kick crippling the entire world economy and 1939-1945 Martha Washington is the only woman whose portrait has appeared on a U.S. currency note. services could be found in Washington, D.c.,. starting 10 years of where you could get the Great Depression. the country moves to it washed and. starts the economy and subsequently the banking system, as STATES Recognized as Black support the war effort. Thursday. ironed. O YOURBANK ESERVES 1978 The First National Bank of *1976 The original building 1970s ATM machines 1946 1950s Credit scoring increases in popularity card system is with use in consumer, created by John mortgage, and micro-small business The first bank credit Seattle issued the first debit of The First Bank of card to business executives the United States is began to populate, and with them the restored for the Bicentennial Biggins with his "Charge-It" program. number of bank with large savings accounts in 1978. By 1998, debit cards outnumbered check branches celebration. increase. ATM lending processes. usage around the world. 1996 1980s-1990s 1980s U.S. commercial banks failed at about 2002 *In 2002, the U.S. Mint produced 14,413,236,610 coins Computers and 1990s Electronic payments The California State Senate passed Bill 1959 which allowed and fund transfers replace paper-based payments. modem connections a 10% rate. Many still did not trust the made it possible for people to pay bills on transfer money over telephone lines. for consumers to take for general circulation. out small emergency system. loans. COIN 2008 2009 The U.S. Mint releases 4 new penny designs to commorate the 2012 2010 Bank trading operations are restricted and The financial crisis Banking institutions came under fierce forces mortgage lending companies to increased transparency scrutiny as consumer and commercial markets floundered around the is enforced with the Dodd-Frank Wall Street Reform and Consumer Protection Act. enforce stronger lending criteria bicentennial anniversary of Lincoln's birthday. world in the wake of the financial crisis. FUN FACTS Parker Brothers has printed more Monopoly money than the Federal Reserve has issued real money. If you stacked up all the Monopoly sets made, the pile would be more than 1,100 miles high. The pyramid on the back of a $1 bill is the reverse image of Great Seal of the United States. It represents strength, permanence and is unfinished to represent America's future. It would take you 317 years to go broke if you had $10 billion dollars and spent a $1 every second of every day. There is about $823 in circulation for each person in America. Paper money can be folded 4,00o times back and forward before it will tear. President Woodrow Wilson is pictured on the $100,000 bill, the largest bill ever printed. 100,000 100,000 INFLATION FACTS In 1890, women could buy a pair of shoes for $1. $1.00 Minimum wage was created in 1938 under the Fair Labor Standards Act and started at .25¢. (25¢ A brand new car cost less than $300 in the 1920s. The average salary in 1940 was $1,299 and it more than doubled in 1950 to $2,922. GAS $0.91 25 years ago, gas was only .91¢ per gallon and 5 years ago $2.81 per gallon. 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