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Dollar is a currency which everyone wants to keep in their pocket or safe. Dollar, one of the most powerful currencies in the world, is discussed more in India because the strength and weakness of the Indian currency i.e. Rupee is assessed by comparing it with it. But do you know that there was a time when there was a currency crisis in America. To deal with this, the dollar was recognized as a currency on April 2, 1792. Let us know what was the whole matter.
Today everyone knows about America’s currency i.e. dollar and it holds an important place among about 180 currencies around the world. However, before the year 1792, there was a tremendous currency crisis in America. In those times, any transaction or trade etc. was paid for in gold or silver.
Due to the limited circulation of currency, people used traditional methods to buy goods or exchange for any service. Generally, goods were exchanged for goods. Many times tobacco leaves, shells and pieces of land were given in exchange for some thing or service. Due to limited use of the currency issued by the rulers, many times people resorted to British or Spanish coins for payment.
Coinage Act passed
Then the Coinage Act was passed by the American Congress on April 2, 1792. After the passage of this act, the US Mint was started. Its job was to mint coins and control them all over the world. In this way, the first formal currency of America appeared in the form of a dollar made of silver and this dollar made of silver came into circulation as a currency.
This is how silver tales were made
However, at that time people used to take silver from their homes to the mint and get coins minted from it. The purpose of this law was to make buying and selling easier for citizens, but in reality this could not happen because very few silver coins were minted. Therefore their arrival in the market was not much. Seeing this problem, local banks in America started their own currency.
Demand notes called paper currency
When there was a shortage of silver, in the year 1861 the American Congress found a solution and decided to issue paper currency. This was a practical solution to overcome the shortage of silver. The paper currency issued for the first time under government control was called Demand Notes. This was used for payment during the Civil War.
America initially printed $5, $10 and $20 notes as paper currency. These were named green boxes, because color was printed on the back side of such notes, so that people could not print fake notes. A green layer of a special type of chemical was applied on this dollar. After this, printing of one dollar note started in the year 1862. Its design has been changed many times since then.
However, the standard system of printing these notes was first developed in the year 1869. The US dollar was first recognized as a world currency through the Bretton Woods Agreement of 1944 and after this it went on to establish itself as the strongest currency in the world. In 1970, the gold standard was removed from the dollar and its value was allowed to fluctuate.
