History of U.S dollarsHistory of U.

S dolars
The history of the United States dollar refers to more than 200 years since Continental Congress of the United States authorized the issuance of the US dollar on August 8, 1785. The term 'dollar' had already been in common usage since the colonial period when it referred to eight-real coin (Spanish dollar) used by the Spanish throughout New Spain. Although several monetary systems were proposed for the early republic, the dollar was approved by Congress to be released in a variety of denominated coins and currency bills. Contents [hide] 1 Background 2 Early years 3 Gold standard 3.1 The Gold Reserve Act 3.2 U.S. dollar value vs. gold value 4 Silver standard 5 Use as international reserve currency 5.1 History 5.2 Impact 6 United States Notes 7 Fiat standard 8 Color and design 9 See also 10 References 11 External links Background [edit] This $50 Continental Currency note (from 1778) was designed by Francis

Hopkinson. The unfinished pyramid design was a precursor to the reverse side of the Great Seal of the United States. By the end of 1778, Continental Currency retained between only 1/5 to 1/7 of their original face value. By 1780, Continental bills - or Continentals - were worth just 1/40th of their face value. Despite efforts by Congress to reform the currency by removing the old bills from circulation and issuing new ones, the attempt met with little or no success. By May 1781, Continentals had become so worthless they ceased to circulate as money. Benjamin Franklin noted that the depreciation of the currency had, in effect, acted as a tax to pay for the war.[1] In the 1790s, after the ratification of the United States Constitution, Continentals could be exchanged for treasury bonds at 1% of face value.[2] Congress appointed Robert Morris to be Superintendent of Finance of the United States following the collapse of Continental currency. In 1782, Morris advocated the creation of the first financial institution chartered by the United States. The Bank of North America was funded in part by specie loaned to the United States by France. Morris helped finance the final stages of the war by issuing notes in his name, backed by his own money. The Bank of North America also issued notes convertible into specie.[3] On August 8, 1785, the Continental Congress of the United States authorized the issuance